Aegis Logistics LimitedQ1 FY27 Results & Financial Update

The Jamnagar-Loni LPG pipeline is complete and operational, while the Kandla-Gorakhpur LPG pipeline is progressing well and expected to be connected during the first half of FY27 to enhance evacuation efficiency.

Aegis signed a nonbinding MoU to participate in the development of Vadhavan Port with a potential investment of approximately INR20,000 crores, subject to regulatory clearances.

Gas distribution volumes reached a record 2.77 lakh metric tons in Q1 FY27, representing a 91% YoY increase and 19% sequential growth, driven by robust demand and new private sector customer additions.

Pipavav secured a 15-year take-or-pay agreement for a liquid rail gantry with a leading petroleum conglomerate, committing volumes exceeding 0.5 million metric tons per annum starting operations by year-end.

Developing an additional 64,000 cubic meters of liquid storage at Mumbai Port with an investment of approximately INR125 crores, targeted for commissioning in the first half of FY27.

Executing a major expansion at JNPA comprising 318,100 cubic meters of additional liquid storage, 77,236 metric tons of LPG capacity, and a 35,000 metric ton annual capacity LPG bottling plant for roughly INR1,675 crores, with the first liquid storage phase (100,000 cbm) expected in Q3 FY27. Additionally, the Board approved a 52,000 metric ton refrigerated double-walled steel LPG tank.

Board approved an additional 49,577 cubic meters of storage at Kochi Port (expected early next financial year), and Mangalore advanced its INR52.5 crore rail gantry and bottling plant project alongside evaluations for another 60,000 cubic meters of liquid storage.

Management expects blended distribution EBITDA margins to be sustainable around INR7,000 plus per ton going forward, supported by volume-driven procurement efficiencies and shifting freight economics from medium gas carriers to very large gas carriers (VLGCs).

Consolidated liquidity reserves stood in excess of INR5,940 crores across various entities, maintaining a target gearing ratio of approximately 0.6 while funding expansions through a balanced mix of equity, internal accruals, and debt.

Cumulative capex is targeted to reach approximately $1.2 billion in FY27, with an identified capex pipeline of approximately $5 billion through FY 2030-31.

The company aims to reach 2 million tons in gas distribution volumes in the next year or the year after.

In response to JP Morgan regarding distribution margin sustainability above historical INR4,000 levels, CFO Murad Moledina explained that geopolitical-driven uncertainty margins observed recently will be substituted by procurement efficiency gains from higher VLGC shipping volumes, sustaining INR7,000 plus blended margins.

Management clarified that ammonia distribution will commence immediately through industrial channels within weeks or a month, targeting industrial customers rather than cylinders or gas stations.

Addressing questions on subsidiary cash balances (standalone, SEAL, Aegis Gas, Aegis International), management noted that Aegis Vopak is self-funded via equity, and excess cash is selectively deployed for accretive organic or inorganic growth while maintaining a fortress balance sheet.