Aegis Vopak Terminals Ltd Q1 FY27 Earnings Call Summary

Event Participants

Executives

• Raj Chandaria - Chairman and Managing Director
• Murad Moledina - Non-Executive Director

Analysts

• Amit Vora - Homeopathic Clinic
• Koundinya Nimmagadda - Jefferies
• Kunal Mehta - InCred Equities
• Priyankar Biswas - JM Financial
• Siddharth Chauhan - 360 One Capital
• Shiraz Bugwadia - Vazirani

Financials & KPIs

Geographic & Segment Commentary

Liquid Terminaling: Revenue grew 31% YoY to ₹126.5 crores, driven by capacity additions commissioned last year (JNPA Plot 1, Mangalore 75,000 CBM) now fully operational and maturing. Better location of new capacities delivers higher realizations (~₹6,000/year for JNPA vs. ₹3,000 blended average). Management expects continued strong liquid performance as more capacity comes online through FY27-FY28.

Gas Terminaling: Revenue declined 3.5% YoY to ₹107.2 crores amid geopolitical disruption, but management notes improvement in July to 80-85% of normal throughput levels. Tariffs remain standardized at ₹1,175-1,200 per metric ton across terminals, with focus on volume growth and terminal turnaround efficiency (new terminals can handle 70-100 turns vs. 26-30 for older infrastructure).

JNPA Terminal: India's highest revenue-generating major port in FY26. Current liquid capacity of ~101,900 CBM; major expansion underway: 318,100 CBM additional liquid storage, 77,236 MT LPG capacity, 35,000 MTPA bottling plant, total capex ₹1,675 crores. First phase of ~100,000 CBM liquid to be commissioned in Q3 FY27. New board-approved 52,000 MT refrigerated LPG tank adds to gas capabilities.

Haldia Terminal: 75% stake acquired in Hindustan Aegis Vopak Terminals with ~25,000 MT LPG capacity backed by exclusive HPCL terminaling agreement through 2038. Operates 226,890 CBM liquid storage. Acquired 3 additional acres for further expansion of liquid storage and handling.

Kandla Terminal: Largest terminal with ~952,000 CBM liquid capacity and 48,000 MT LPG storage. Became VLGC-compliant last year. CRL4 expansion (94,148 CBM) targeted for commissioning next year. Signed non-binding MoU with L&T for potential ammonia terminal development. Jamnagar-Loni LPG pipeline now operational; Kandla-Gorakhpur pipeline expected connected in H1 FY27.

Pipavav Terminal: 48,000 MT cryogenic LPG terminal commissioned June 2025 (total ~70,800 MT at site). Multiple infrastructure developments: new VLGC-compliant jetty (expected this year), additional liquid rail gantry with 15-year take-or-pay agreement with a leading conglomerate (0.5+ MMT per annum committed volumes, operations by year-end), Kandla-Gorakhpur pipeline connectivity expected within 2-3 months. Ammonia terminal of 36,000 MT commissioned with 15-year take-or-pay with Hindustan Zinc for its upcoming DAP plant.

Kochi Terminal: Current liquid storage of 82,545 CBM; board approved expansion of 49,577 CBM on newly allotted land, expected commissioning early next FY. Total liquid capacity will reach 132,122 CBM.

Mangalore Terminal: 82,000 MT cryogenic LPG terminal commissioned June 2025; LPG rail loading gantry and bottling infrastructure underway (₹52.5 crores investment). 75,000 CBM liquid added last year now fully utilized (total 193,000 CBM). Additional 60,000 CBM liquid under evaluation on secured land.

Vadodara Port: Non-binding MoU to participate in new port development with potential investment of ~₹20,000 crores, subject to approvals. Aligned with long-term vision of developing large-scale liquid and gas handling infrastructure on the West Coast.

Company-Specific & Strategic Commentary

Capacity Expansion Pipeline: Board approved ₹1,675 crores JNPA expansion (liquid, LPG, bottling), 52,000 MT LPG tank at JNPA, and 49,577 CBM liquid at Kochi. Liquid capacity expected to grow from 1.7M CBM to ~2.2M CBM by FY27 end and ~3M CBM by FY28 end. Capex program of ₹10,000 crores (announced at IPO) to be fully commissioned by March-June FY27.

Multimodal Evacuation Infrastructure: Four cross-country pipeline connections coming online during FY27: Jamnagar-Loni (operational), Kandla-Gorakhpur at Kandla and Pipavav (within 2-3 months), Haldia-Panagarh (HPCL, expected Oct-Nov). Additional developments: Pipavav liquid rail gantry (0.5+ MMT take-or-pay secured), Mangalore LPG rail gantry, Mangalore-Hassan-Chirapuri pipeline expected later in the year.

Ammonia Market Entry: Commissioned specialized ammonia storage terminaling facility at Pipavav with 36,000 MT static capacity. Realizations 2.5-3 times higher than LPG; theoretical capacity of ~1 million tons at 3 turns, with first-year projection of 20-25% utilization. Anchored by 15-year take-or-pay with Hindustan Zinc for its DAP plant.

Growth Strategy Diversification: Moving beyond port-based terminals into inland depots, strategic storage for the country, and industrial terminals for blue-chip clients. Targeting $5 billion capex by FY30-31, expanding from current 7 ports given India has 200+ ports.

Funding Strategy: Maintaining debt/equity cap of 0.6 with leverage capped at 3.5x EBITDA. $5 billion capex funded through mix of debt ($3 billion max), internal accruals, and mandatory equity dilution to 25% public holding by June 2028 to reach $2 billion net worth.

Guidance & Outlook

Risks & Constraints

Q&A Highlights

Tariff Structure and Pricing

• Question: Are gas throughput charges fixed per counterparty or standard across customers? (Siddharth Chauhan - 360 One Capital)
• Answer: Standard rate of ₹1,175/metric ton across customers, with principals paying up to ₹1,200. Focus is on volume growth, not tariff escalation. Terminaling is infrastructure usage business; distribution margins are higher due to sourcing risk, shipping, and inventory positions, not infrastructure fees. (Raj Chandaria, Murad Moledina)

Volume Growth vs. Market Growth

• Question: How can you grow 25% YoY when LPG market is growing only 4-5% annually? (Koundinya Nimmagadda - Jefferies)
• Answer: Growth is from a smaller base; 25% of ~10% market share equals ~2.5% of the market's 5% growth. New terminals can turn around 70-100 times per year vs. 26-30 times for older competitors, so incremental volumes flow to AVTL. Also replacing inefficient operators' throughput with modern infrastructure. (Murad Moledina)

Geopolitical Impact and Recovery

• Question: How did you maintain performance during the Hormuz crisis, and can you sustain growth? (Priyankar Biswas - JM Financial)
• Answer: Ships were not stuck in Middle East due to diversified sourcing through ITOCHU partnership—cargo from Argentina, Canada, America, Nigeria. Expanded distribution network with 4 pipeline connections: Jamnagar-Loni (operational), Kandla-Gorakhpur (Pipavav in 2-3 months), Haldia-Panagarh (Oct-Nov, HPCL), Mangalore-Hassan-Chirapuri (later). July volumes improving. (Raj Chandaria, Murad Moledina)

Liquid Revenue Drivers and Capacity

• Question: What explains the sharp 31% YoY rise in liquid revenues given capacity hasn't significantly increased? (Koundinya Nimmagadda - Jefferies)
• Answer: JNPA Plot 1 now fully firing with realizations of ~₹6,000/year versus blended average of ₹3,000. New last-year capacities have matured; product mix change takes time. Also solid plus higher turnaround. EBITDA and bottom-line focus is key. (Murad Moledina)

Capex Funding and Post-₹10,000 Crore Plans

• Question: How will future capex be funded, and what comes after the ₹10,000 crore program? (Kunal Mehta - InCred Equities and Priyankar Biswas - JM Financial)
• Answer: Mix of everything; debt/equity capped at 0.6, leverage capped at 3.5x EBITDA. $5 billion capex implies max $3 billion debt; need $2 billion equity, achievable with mandatory dilution to 25% by June 2028 plus internal accruals. Beyond existing ports, targeting inland depots, strategic storage, industrial terminals for blue-chip clients, and new ports. Very close to closing several opportunities; will share upon binding agreements. (Murad Moledina)

Ammonia Terminal Economics

• Question: What is the turnaround capacity and mechanism for the ammonia terminal? (Shiraz Bugwadia - Vazirani)
• Answer: Terminal can do 3 turns, theoretically ~1 million tons. First-year projection of 20-25% utilization (prorated as commercially started in August). Realizations 2.5-3 times higher than LPG, which offsets lower turn. (Murad Moledina)

LPG Tariff Consistency Across Terminals

• Question: Is the LPG tariff same across all terminals? (Kunal Mehta - InCred Equities)
• Answer: Yes, LPG is a volume-driven game with same tariff across all terminals. Products don't stay in tanks long (3-4 days with fast turnaround); focus is on how fast you turn, not tariff differentiation. (Murad Moledina)

Haldia-Panagarh Pipeline Capacity

• Question: Will the Haldia-Panagarh pipeline deliver 1 million tons upswing as mentioned previously? (Priyankar Biswas - JM Financial)
• Answer: The Panagarh bottling plant is capable of 0.5 million tons/year, currently operational but not at full capacity. Pipeline connection should enable ~0.25 million tons depending on ramp-up. It is a customer-laid pipeline (HPCL), so expected to make a difference to throughput. (Murad Moledina)

Key Takeaway

Aegis Vopak Terminals delivered a resilient Q1 FY27 despite severe geopolitical disruption, with revenue growing 12.4% YoY to ₹233.8 crores and EBITDA up 15.6% to ₹179.4 crores (76.7% margin). Liquid terminaling was the star performer (+31% YoY to ₹126.5 crores) as new capacities matured at higher realizations, while gas revenue declined 3.5% due to Hormuz-related supply constraints—mitigated by diversified sourcing and improving July volumes. The company is executing an aggressive expansion: ₹10,000 crore capex fully commissioned by FY27, liquid capacity growing from 1.7M to 3M CBM by FY28, four pipeline connections coming online this year, and new entry into ammonia (₹2.5-3x LPG realizations) anchored by a 15-year Hindustan Zinc take-or-pay. Management maintains a 25% annual volume growth aspiration, backed by multimodal evacuation infrastructure and 70-100 terminal turns annually versus 26-30 for competitors, with a $5 billion capex roadmap through FY31 funded through disciplined leverage (0.6 debt/equity cap) and equity dilution by 2028. Key watch points: continued Hormuz disruption impact on LPG volumes, execution of the lumpy $5 billion program, and potential capacity constraints at Kandla as pipelines drive utilization higher.