Aegis Logistics: Strategic Growth Fuels Future Outlook

Ashwin Thakker

— 2 min read
  • Sales Outlook: Aegis Logistics anticipates 'good, healthy growth' in distribution volumes and overall throughput for FY26, targeting a 25% year-on-year EPS CAGR. New capacities (Mangalore, Pipavav) and pipeline commissioning (KGPL, JLPL by Q2 FY26) are expected to drive significant volume increases.
  • Margin Outlook: LPG distribution margins are projected to stabilize at Rs. 3,000-Rs. 3,500 per metric ton annually, recovering from Q1’s volume-driven push. Liquid segment EBITDA margins are targeted around Rs. 2,000 per CBM on a yearly average. Management is focused on retaining healthy margins amidst growth.

Aegis Logistics Limited anticipates an 'excellent year' for FY26, driven by strategic capacity expansions and robust volume growth. The company reported strong Q1 FY26 performance, setting the stage for significant future gains across its liquid and gas segments. This outlook is bolstered by aggressive capital expenditure and a commitment to operational excellence.

Strategic Expansions and Volume Drivers

Aegis Logistics is driving robust future growth through significant capital investments, targeting US$1.2 billion in Capex by FY27 and an aggregate US$5 billion by 2030. These funds are fueling major projects, including a Rs. 1,675 crores expansion at JNPT for liquids, LPG, and bottling. At Mumbai Port, 50% of the 125,000 kiloliters liquid capacity addition is expected to be operational next quarter, with full operation by fiscal year-end. In Kandla, volume is set to surge as KGPL and JLPL pipelines become operational in Q2 FY26. India's first independent ammonia terminal at Pipavav is also nearing completion, secured by a 15-year contract. These expansions, along with new operational terminals at Mangalore and Pipavav, are poised to significantly boost throughput.

“This year is going to be a good and very healthy upside as far as throughput is concerned.”

Financial Outlook and Margin Resilience

Aegis Logistics is committed to delivering strong financial performance, targeting a 25% year-on-year Compound Annual Growth Rate (CAGR) in Earnings Per Share (EPS). The company expects a robust increase in overall throughput and distribution volumes, building on Q1 FY26’s 15% year-on-year LPG volume growth. Management anticipates that new terminals will start at 25-30% utilization, gradually scaling to 75-100% over 5-7 years, ensuring long-term asset productivity and revenue generation.

For profitability, LPG distribution margins are expected to average Rs. 3,000-Rs. 3,500 per metric ton annually, recovering from Q1’s Rs. 2,500 due to strategic volume expansion into new markets. The liquid segment targets an average EBITDA margin of approximately Rs. 2,000 per CBM annually. Further improvements in liquid segment performance are anticipated as newly commissioned terminals mature and the product mix optimizes throughout the fiscal year, ensuring sustained financial health across both core businesses.

Aegis Logistics is poised for an 'excellent' FY26, driven by aggressive capital expenditure and strategic capacity expansions across its liquid and gas businesses. With new terminals becoming operational and a strong project pipeline, the company anticipates significant volume and throughput growth. Management's focus on maintaining healthy margins and achieving a 25% EPS CAGR underscores a confident outlook for sustained long-term value creation.

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