💰 Financial Performance

Revenue Growth by Segment

In Q2 FY26, the Liquid Terminalling segment grew 28.3% YoY to INR 106.04 Cr, while the Gas Terminalling segment grew 23.7% YoY to INR 81.59 Cr. For the full year FY25, total revenue grew 10.6% to INR 621.08 Cr compared to INR 561.76 Cr in FY24.

Geographic Revenue Split

Revenue is derived from assets located across 6 major ports on both the East and West coasts of India, including Kandla, Pipavav, Haldia, Mangalore, Kochi, and Mumbai. The strategic entry into the East Coast market is being strengthened by the acquisition of a 75% stake in HALPG at Haldia.

Profitability Margins

PAT margin for FY25 stood at 20.5%, up 508 bps from 15.4% in FY24. Q2 FY26 PAT grew 141.8% YoY to INR 53.94 Cr, driven by a 61% reduction in interest costs following substantial debt repayment.

EBITDA Margin

Operating EBITDA margin was 73.3% in Q2 FY26, a slight decrease from 73.5% in Q2 FY25. For the full year FY25, the EBITDA margin was 73.7%, representing a 293 bps improvement over FY24's 70.8%.

Capital Expenditure

The company is executing a massive expansion under 'Project GATI' with a planned cumulative CAPEX of USD 1.2 billion (approx. INR 10,000 Cr) by 2026 and an aggregate target of USD 5 billion (approx. INR 42,000 Cr) by 2030.

Credit Rating & Borrowing

The company maintains a credit rating of IND AA / Stable for its bank facilities. Interest costs decreased by 61% YoY in Q2 FY26 due to the full-quarter impact of debt repayment, with a target gearing ratio of 0.6x and a maximum cap of 3.5x EBITDA.

⚙️ Operational Drivers

Raw Materials

As a terminalling and logistics provider, the company does not consume traditional raw materials; its primary 'inputs' are the commodities handled, specifically LPG (Liquefied Petroleum Gas), Ammonia, and various Liquid chemicals/petrochemicals which constitute 100% of throughput volume.

Import Sources

Commodities are sourced globally by clients and received at major Indian ports including Gujarat (Kandla, Pipavav), West Bengal (Haldia), Karnataka (Mangalore), and Kerala (Kochi).

Key Suppliers

The company maintains strategic agreements with major PSUs and global entities, including an exclusive terminalling agreement with HPCL for the HALPG terminal valid until 2038.

Capacity Expansion

Current expansion includes the consolidation of 25,000 MT of LPG capacity at Haldia through the HALPG acquisition. Kandla is being upgraded for VLGC (Very Large Gas Carrier) berthing by Q3 FY26, and 3 acres of land were newly allotted at Haldia for liquid expansion.

Raw Material Costs

Operating expenses, which include power and port charges, were INR 163.39 Cr in FY25, representing approximately 26.3% of revenue. These costs remained stable YoY despite a 10.6% increase in revenue, indicating improved operational leverage.

Manufacturing Efficiency

Gas throughput reached 0.68 million metric tons in Q2 FY26, up from 0.52 million in Q1 FY26. Efficiency is driven by high-capacity utilization of static storage and rapid evacuation via new pipeline links.

Logistics & Distribution

Distribution is handled via integrated pipeline networks (KGPL/JLPL) and road/rail connectivity. The company aims to leverage its position as India's largest independent tank storage operator to capture higher throughput fees.

📈 Strategic Growth

Expected Growth Rate

26%

Growth Strategy

Growth will be achieved through 'Project GATI', focusing on expanding storage footprints and diversifying into Ammonia and new liquid products. Key drivers include the 75% stake acquisition in HALPG, the operationalization of new LPG terminals at Pipavav and Mangalore, and connecting the Kandla terminal to the 12 MMTPA combined capacity of the KGPL and JLPL pipelines.

Products & Services

The company provides terminalling and storage services for LPG, Ammonia, and liquid chemicals, as well as LPG bottling services through the HALPG plant.

Brand Portfolio

Aegis Vopak Terminals Limited (AVTL), Hindustan Aegis LPG Limited (HALPG), Aegis Logistics, Royal Vopak.

New Products/Services

Expansion into Ammonia storage and handling is a key new focus area, alongside the consolidation of LPG bottling services via the HALPG acquisition.

Market Expansion

Strategic entry into the East Coast market via Haldia and expansion of existing footprints in Kandla and Pipavav. Target is to reach USD 5 billion in CAPEX by 2030.

Market Share & Ranking

AVTL is India's largest independent owner and operator of tank storage terminals for LPG and liquid products.

Strategic Alliances

A joint venture between Aegis Logistics Limited (50.1% stake) and Royal Vopak (47.31% stake), combining local expertise with global terminal operating standards.

🌍 External Factors

Industry Trends

The industry is shifting toward cleaner energy, with LPG and Ammonia seeing 15-20% growth in demand. AVTL is positioning itself by expanding infrastructure to handle VLGCs and connecting to national pipeline grids to lower evacuation costs and increase throughput.

Competitive Landscape

Key competitors include PSU-owned terminals (IOC Kandla) and private players like Adani Mundra, though AVTL maintains leadership as the largest independent operator.

Competitive Moat

The moat is built on 'irreplaceable' port-based infrastructure, exclusive long-term contracts, and the unique JV parentage. These are highly sustainable due to the high CAPEX requirements and regulatory complexities of building new port terminals.

Macro Economic Sensitivity

Highly sensitive to India's energy demand and LPG consumption trends, which are influenced by GDP growth and government energy transition policies.

Consumer Behavior

Increasing domestic and industrial demand for LPG as a cleaner fuel alternative is driving higher terminal throughput.

Geopolitical Risks

Exposure to global energy supply chain disruptions which could affect the timing and volume of LPG/Ammonia imports into Indian ports.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to Petroleum and Explosives Safety Organization (PESO) norms, port authority regulations, and environmental clearances for terminal expansions.

Environmental Compliance

The company adheres to global safety and sustainability standards provided by Royal Vopak; specific ESG spend in INR is not disclosed.

Taxation Policy Impact

The company reported a current tax liability of INR 0.3 Cr as of September 2025. Deferred tax liabilities (net) stood at INR 136.8 Cr.

Legal Contingencies

The company reported no instances of non-compliance or penalties imposed by any statutory authority regarding capital markets or operations during the last three years.

⚠️ Risk Analysis

Key Uncertainties

Key risks include project execution delays for the USD 5 billion CAPEX plan and potential changes in the exclusive terminalling agreement with HPCL, which could impact long-term revenue stability.

Geographic Concentration Risk

Concentrated in 6 major Indian ports, with a significant portion of revenue and growth tied to the Gujarat (Kandla/Pipavav) and West Bengal (Haldia) regions.

Third Party Dependencies

High dependency on port authorities for land allotments and on pipeline operators (KGPL/JLPL) for volume evacuation.

Technology Obsolescence Risk

Low risk due to the physical nature of storage; however, the company is digitizing operations to improve throughput efficiency.

Credit & Counterparty Risk

Low risk as primary customers are large PSUs and established industrial players. Trade payables were only INR 18 Cr as of September 2025.