GATEWAY - Gateway Distri

📊 NSE: GATEWAY 🏢 Miscellaneous 📅 Last Updated: 12/13/2025 22:17

💰 Financial Performance

Revenue Growth by Segment

H1 FY26 revenue grew 50% YoY to INR 1,117.8 Cr. Rail segment revenue grew 7.8% YoY to INR 659 Cr, while CFS segment revenue grew 8.3% YoY to INR 143 Cr. Snowman Logistics (newly consolidated) contributed INR 319.7 Cr in H1 FY26.

Geographic Revenue Split

Not disclosed in available documents; operations are primarily focused on Indian logistics hubs and Dedicated Freight Corridors.

Profitability Margins

H1 FY26 PAT margin was 11.42%, a decrease of 310 bps from 14.52% YoY. Standalone Net Profit Ratio for FY25 remained steady at 0.16.

EBITDA Margin

H1 FY26 EBITDA margin was 21.92%, down 341 bps from 25.3% YoY. EBITDA grew 29% YoY to INR 246.4 Cr during the same period.

Capital Expenditure

Not disclosed in absolute INR Cr for future plans, but standalone current ratio improved from 1.02 to 1.14 in FY25, indicating asset management focus.

Credit Rating & Borrowing

Standalone term loans include INR 103.31 Cr from ICICI Bank and INR 108.04 Cr from Bajaj Finance. Finance costs increased to INR 47.77 Cr in FY25 from INR 46.08 Cr YoY.

⚙️ Operational Drivers

Raw Materials

Diesel fuel represents a significant cost for transportation and power backup, particularly for Snowman Logistics where weather-related power cuts increased consumption.

Import Sources

Not disclosed; fuel and power are sourced domestically within India.

Key Suppliers

Indian Railways (haulage services), ICICI Bank, Axis Bank, and Bajaj Finance (financial services).

Capacity Expansion

Rail throughput reached 1,94,522 TEUs in H1 FY26 (up 11.3% YoY). CFS throughput reached 1,90,690 TEUs (up 4% YoY). New warehousing capacities were added in the Snowman segment.

Raw Material Costs

Operating expenses grew 54% YoY to INR 727.4 Cr in H1 FY26, largely driven by the consolidation of Snowman Logistics and increased fuel/haulage costs.

Manufacturing Efficiency

Rail throughput efficiency grew 9.2% in Q2 FY26 to 1,01,240 TEUs. Snowman transportation is targeting a return to high single-digit PBT margins from a current break-even state.

Logistics & Distribution

Operating expenses as a percentage of revenue stood at 65% in H1 FY26, up from 63.7% YoY.

📈 Strategic Growth

Expected Growth Rate

15%

Growth Strategy

Achieving growth through the full consolidation of Snowman Logistics (contributing INR 319.7 Cr revenue in H1 FY26), leveraging the Western Dedicated Freight Corridor (DFC) to increase Rail EBITDA per TEU, and refurbishing the transport fleet to exit negative-margin contracts.

Products & Services

Rail freight transportation, Container Freight Station (CFS) services, temperature-controlled warehousing, and primary/secondary distribution logistics.

Brand Portfolio

Gateway Distriparks, Snowman Logistics.

New Products/Services

Expansion of cold chain transportation and realignment of the logistics fleet to target high-margin business segments.

Market Expansion

Targeting increased throughput via the Western DFC and expanding cold chain footprint in India.

Strategic Alliances

Snowman Logistics transitioned from an Associate to a Subsidiary in December 2024, significantly expanding the consolidated service portfolio.

🌍 External Factors

Industry Trends

The industry is shifting toward rail-led logistics via the Dedicated Freight Corridor (DFC), with Gateway positioning itself to capture higher EBITDA per TEU as the Western DFC matures.

Competitive Landscape

Competition includes other private rail operators and CFS providers; Gateway is differentiating through integrated cold chain services via Snowman.

Competitive Moat

Moat is built on intermodal connectivity (Rail + CFS + Cold Chain) and strategic land banks near major ports; sustainability depends on maintaining high throughput (currently ~1.94 lakh TEUs in Rail).

Macro Economic Sensitivity

Highly sensitive to economic and political conditions, interest rate fluctuations, and changes in Government/RBI regulations.

Consumer Behavior

Increased demand for temperature-controlled logistics driven by the seafood and organized retail sectors.

Geopolitical Risks

Economic and political conditions are cited as cautionary factors that could materially differ actual results from projections.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with Ind AS 115 for revenue recognition and Ind AS 116 for lease liabilities (INR 363.6 Cr total lease liability).

Taxation Policy Impact

Effective tax rate for H1 FY26 was approximately 8.5% (INR 11.9 Cr tax on INR 140.4 Cr PBT).

Legal Contingencies

Pending contingent liabilities of INR 259.70 Cr (Rs. 25,970.41 lakhs) relating to tax and legal claims, which led to a qualified audit opinion in FY25.