Aegis Logistics Limited (AEGISLOG) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Q4 and FY26 Earnings Conference Call of Aegis Logistics Limited hosted by MUFG in time. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. I now hand the conference over to Mr. Raj Chandarya, Chairman and Managing Director of Aegis Logistics Limited. Thank you. And over to you, sir.

Thank you very much. Good evening, everybody. And, you know, I'm joined tonight by our CFO, Mr. Murad Maladina, and Ms. Payal Dave from our investor relations team. Let me begin by highlighting the numbers for FY26 that really define the year. It was an outstanding year, a breakout year for us. So the revenues grew 23% year-on-year to 8,333 crores. Normalized EBITDA rose 36% to 1,599 crores. Profit after tax grew 41% to 1,107 crores. Crossing the symbolic 1,000 crore profit-after-tax milestone for the first time. Cash and investments on the balance sheet reached approximately 6,000 crores. And just to put things in perspective, over the last five years, we have delivered an earnings per share cumulative average growth rate of 32% with a consistent dividend track record. Our fourth quarter was particularly strong, with revenue up 52%, EBITDA up by 54%, and profit after tax up 43% year-on-year. These results reflect the compounding power of our diversified operations and the discipline with which we are executing. In line with our commitment to shareholder returns, the Board has recommended a final dividend of $6.70 per share for FY26, bringing the aggregate dividend for the year to $8.7 per share. I'm going to just run through the port-by-core operational update. So Mumbai continues to operate at a very high utilization rate. Our facility comprises 334,000 kilolitres of liquid storage and 21,000 metric tons of static LPG capacity. We are developing an additional 64,000 kiloliters of liquid storage at a project cost of 125 crores, which is progressing on schedule with a commissioning targeted for the first half of FY27 this year. At JNPT, the current liquid storage stands at 106,900 cubic meters. And we are executing a major expansion, approximately 318,100 cubic meters of additional liquid storage, 77,236 metric tons of LPG capacity, and an LPG bottling plant with 35,000 metric tons of annual capacity, with a total capital outlay of approximately 1,675 crores. And the first phase of the liquid capacity is expected to be commissioned in the first half of this year, FY27. And we are evaluating a further cryogenic gas tank of between 36,000 to 50,000 metric ton capacity, static capacity, to further strengthen our West Coast gas handling capabilities. At the Haldia port, switching to the other coast, we completed the acquisition of a 75% stake in Hindustan Aegis LPG Limited during the year, adding approximately 25,000 metric tons of LPG storage and marking our entry into the East Coast market. Of course, this was basically acquired through by our subsidiary. Aegis Vopac Terminals Limited. The asset is anchored by an exclusive terminal agreement with Hindustan Petroleum through 2038, providing strong long-term revenue visibility. And we operate 226,890 cubic meters of liquid storage here, and we have acquired an additional three acres of land. to support future expansion. Moving on to Khandla, this remains one of our largest and most important, strategically most important hubs, approximately 952,000 cubic meters of liquid storage and 48,000 metric tons of LPG capacity. Several milestones were achieved this year in this port. In December, the group successfully handled a VLGC vessel, making Kandla a VLGC-compliant terminal. And the Jamnagar Lonely Pipeline LPG pipeline is complete, and the Kandla Gorakhpur LPG pipeline is expected to be connected in H1 FY27, further improving evacuation efficiency. The construction of the CRL-4 liquid terminal, which will add an additional 94,148 cubic meters, is progressing well, with commissioning targeted for next year. We have signed a non-binding memorandum of understanding with Larsen and Tobro. For potential joint development of ammonia terminals, which position us well in the energy transition opportunity at Kangla. Moving on to Pefawao, this has been one of our most active locations this year. We commissioned a 48,000 metric ton cryogenic LPG terminal in June of 2025. Taking the total LPG capacity to 70,800 metric tons at this site, and the ramp-up is progressing well. A new VLGC-compliant jetty is expected to be completed within this calendar year with the KGPL pipeline connection following in Q2 of FY27. When complete, Sipawao will offer a fully integrated LPG logistics ecosystem, VLGC handling, cryogenic storage, bottling plant, an LPG rail gantry, 16 truck loading days, and pipeline connectivity to central India. On the liquid side, we are building an additional rail gantry and have secured a 15-year take-or-pay agreement with a leading conglomerate for petroleum products. Committed volumes exceed 0.5 million metric tons per year annually, with operations expected to commence by year-end. Now, we are also advancing India's first independent ammonia terminal at Bipala, which is a 36,000-metric-ton static capacity terminal backed by a 15-year take-or-pay agreement with Hindustan Zinc for their upcoming DAP, diammonium phosphate plant, with commissioning targeted for H1 of this fiscal year. And Itochi Corporation has acquired a 10% stake in Aegis Terminal Pipawa Limited, coming in as a strategic partner, with an intention to raise that to a 25% stake over the next three years. As far as Kochi is concerned, we operate 82,545 cubic meters of liquid storage. At this site, we continue to evaluate the addition of an additional 60,000 cubic meters on this newly allotted land, and we'll provide further updates once this is finalized. At Bangalore Fork, we commissioned an 82,000 metric ton cryogenic LPG terminal in June of 2025 and are progressing on the construction of an LPG rail tree there. A very important step. The 75,000 cubic meters of liquid capacity that was added last year is now fully operational, bringing the total liquid storage to 193 cubic meters of capacity. We have secured additional land and are evaluating a further 60,000 cubic meters of liquid storage. Just to update on the Vadavan port, we have signed a non-binding memorandum of understanding to participate in the development of this port with a potential investment of approximately 20,000 crores, subject to approvals and land allocation, of course, and this will enable us to develop further world-class liquid and gas handling infrastructure. And significantly expanding the scale and geographic reach of our network. So with that sort of overall view, I'll hand over to Murad Maladina to take us through the financial details. Murad, over to you.

Thank you. Thank you very much.

And now let me take you through the financials and then our capital allocation framework. For the full year, FY26 was a year of significant financial progress across both segments. At the group level, revenue from operations grew 23% year-on-year to 8,333 groves. Normalized EBITDA rose 36% to 1,599 groves, and profit after tax increased 41%. By segment, LPG business recorded its highest level revenue of 7,689 crores, up 26% year-on-year, with EPICTA growing 68% to 1,131 crores. Driven by record, logistics, and distribution volumes. LPG terminal throughput volumes reached 5.15 million tons, up 14%. Distribution volumes surged 45% to 7.54 lakh metric tons, and sourcing sales grew 2% to 6.07 lakh metric tons. Liquid Business delivered revenue of 644 crores broadly stable year-on-year, with a PICTA of 472 crores down 5%, reflecting phasing of capacity additions, and also during the year, unlike last year, it was all normalized operations with no major take of pay. Now, let's run through Q4 FY26. The fourth quarter was our strongest ever. Revenue from operations reached 2,594 crores, up 52% year-on-year. Normalized EBITDA grew 54% to 670 crores. Profit after tax rose 43% to 455 crores. By segment in Q4, LPG segment generated a revenue of 2,410 crores, up 65% year-on-year, with EBITDA more than doubling to 549 crores, a 136% increase. This is the highest ever revenue and EBITDA for the gas division, not just for Q4, but across any quarter. Distribution volumes reached a record 2.34 lakh metric ton, up 71%. Even as throughput of 1.23 million tons held steady despite disruptions from the West Asia situation. Liquid segment reported revenue of 184 crores and a beta of 126 crores in the quarter. Our balance sheet is a key strategic asset. Cash and investments have grown from 150 crores. In FY22, just four years back, to 5,939 crores in FY26, a transformation that positions us to fund growth at pace without compromising financial discipline. Cumulative Quebec is expected to reach approximately 1.2 billion by next year, reflecting the pace of expansion across our port network. Looking further ahead, we have identified a CapEx pipeline of approximately $5 billion to 2030 investments aligned with both traditional energy infrastructure and emerging energy transitions to value chains. We'll pursue this growth with disciplined funding through balanced mix of... Equity, internal accrues, and debt targeting a gearing ratio of approximately 0.6x, low leverage, strong cash generation, and a resilient balance sheet gives us the financial flexibility to move quickly on opportunities. With that, I'll hand the line to the moderator to open for Q&A.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to please use handsets while asking a question. Ladies and gentlemen, we will now wait for a moment while the question queue assembles. Our first question comes from the line of Vibhav Zuchi with J.P. Morgan. Please go ahead.

Yes, thanks for the opportunity and congratulations on the strong results. First question is on the gas segment profitability, which I've seen a very sharp increase due on due on per ton basis. So can you provide some color how much was driven by the distribution segment? Is there any one-off and going forward, what could be the normalized level?

Yes, please. So, if you will look at our numbers, the volumes have surged in distribution business. So, that has also contributed on the surge of revenue as well as EBITDA. Second is, of course, the margin that we have earned during the year has been around 7,000 rupees against 4,000 odd in the previous year. Going forward, the next year also, we expect the same as the energy prices have risen and so also the margins because of the uncertainty involved. Going forward, we feel the 7,000-odd margin should be sustainable as, you know, beyond 26-27, we would see our distribution volumes really of a scale that brings procurement efficiencies, which will, when the prices of energy stabilize or come down, will compensate in terms of margins. So, yes, going ahead, we feel confident that these are sustainable margins, and, of course, there is a huge upside as far as volume is concerned. Throughput, of course, also will be good in the current year, as you will see a lot of multimodal evacuation kicking in, especially the Jamnagaloni pipeline in Kanda, Kanda-Gorugpur pipeline in Kanda, as well as Pipawa. Then the rail gantries that we are building. And please keep in mind, some of our terminals, like Pipawa Cryogenic, as well as Mangalore Cryogenic, were operational for part of the year in 2025-2026. So you will see a full year effect of that. As such, overall, gas, of course, will continue to grow really well going forward.

Got it. Thanks, sir, for the comprehensive answer. Just a follow-up here on the NPT situation. So, it looks like for you, the volumes kind of have completely normalized in June. So, is this understanding correct? And for the country overall, like when do you expect full normalization? Because I think we are still down 30 to 50% year over year. Things are improving, but just your thoughts over here.

We cannot do any prophecy, but yes, I can tell you for sure that things are improving month on month. In May, the shortfall is down to 30%. When it was 50% in April, in May, it has been better, and we expect this improvement to continue. Probably in Q2, sometime in Q2, we should see normalcy return. Written back. And mind you, LPG... The supply source, Middle East, is not the only source. It's the source of convenience. There are multiple supply sources, and of course, the journey time would be a little more, but I think going forward, this situation has a few lessons for everyone to have alternative supply sources, which is always there. So I think this will stabilize soon, maybe beginning sometime. In Q2 onwards, and you will see many alternative supply sources going forward because the dependency on Middle East will, of course, reduce as alternative supply source will kick in.

Got it, got it. And the second question is on CapEx. So, can you provide the guidance for FI27 and FI28 if possible? I think this year was somewhere around 800 crores. So, looks like we'll see a very big jump now, but if you can just quantify what's going to be.

We will see a $1.2 billion aggregate CapEx by March 27th that we have already said. So, March 28th, we would again see a capex up to 5,000 crores coming in. This is both organic and inorganic as such.

Got it. Thank you.

Thank you.

Thank you. Our next question is from the line of Anil Sarin with K16 Advisors. Please go ahead.

Hello, again. Part of my question has already been answered. Just wanted to check, I mean, for further clarity, what was the exact CAPEX in fiscal 26, and what is the exact CAPEX planned for fiscal 27? Furthermore, this 1.2, I suppose it will add up to 1.2 billion. Does that mean that the residual that is... Fiscal 29 and fiscal 30 would have $3.8 billion of CAPEX?

We have said that CAPEX is 2030, not FY30, please. So keep in mind, this is still 2030 December. So we will have FY31 to reach $5 billion. Please keep that in mind. So you will see a lot of capex on the later half of this five-year period. So you will see heavy capex in 29, 30, and 31. And you will have up to 28, we have already said, will be 1.2 billion and then again 5,000 crore. So, you add up that to the $1.2 billion, and thereafter, you can spread it out in the next three years to reach $5 billion.

One clarification, is Wadwan port that MOU included in this CAPEX? To the extent we are able to execute

out there, because it all depends on how quickly the port comes up and the allotment of land and the permits happen. But yes, I suspect that part of it will definitely be included in that 5 billion, but not all of it, I'm sure.

Okay, great. Just one follow-on. This distribution margin, I mean, if I sort of separate out the nine-month and the, sorry, yeah, the first three quarters and focus only on the fourth quarter, there was an unusually sharp jump. You have already answered that this has taken the average up to 7,000 and that 7,000 would sustain, but I had a related question that, you know, now the southern operations of Mangalore and Kochi, Kochi are also expanding, are sort of coming into play. And with those railway gantries and hopefully the Cherlapalli pipeline also coming into operation, south is structurally starved of gas. What does both Mangalore and Kochi and their respective expansions do to the distribution volume in south India As well as for the full part of India, taking the total distribution to what level in fiscal 27, and if you can hazard a guess, what level in tonnage terms for fiscal 28. Yes, again.

Yeah, so you have said it right. Earlier, we were doing distribution from Mumbai and Kandla. Now we are doing it from all over the place. So it includes Mangalore, the newly commissioned Cryo, Alvia, Pipawa, Kandla, Mumbai. So that's what is leading to the volume increase. We always had a target of 2 million tons. So we expect that to reach by 28. And mind you, we are also commissioning ammonia. So then that means that ammonia distribution would form part of this 2 million gas distribution that we intend to do. So, yes, I think that is what it is. South also, east also, and west also. We will be distributing gas all over the place because we have now terminals spread out, you know, and cryogenic in nature, which enables us to do more of, we have more of a lage, and we can do more of distribution, stock and then sell.

Great. One clarification. Isn't the ammonia capacity already spoken for? You know, it's already assigned to Hindustan zinc. So, where from does the scope come for distribution of ammonia? One third of the capacity is take or pay.

Two third is available with us as open source.

Okay. Great. Great. Thank you very much. Yep. Thank you.

Thank you. Our next question comes from the line of Chirag Vikaria with Budrani Finance. Please go ahead.

Yeah, good evening, sir. Just wanted to get us answered. Even if we, you know, take the realization at around 7,000 rupees per ton for a distribution segment, yet, you know, the profitability in gas segment is way off the mark, sir.

Sorry, can you repeat the question? I did not get it.

In the distribution segment, you said the realizations have gone up, right? The margins have gone up, correct? So, sir, even if you take that, I mean, the numbers that you have posted are, you know, very strong. So, what explains that, sir?

You know, the margins are from the results that have been posted, right?

Yeah.

And volumes, of course. Volumes and margins have gone up. Okay, okay.

And sir, is this sustainable or so long as, you know, the energy crisis are there, you know, this will be at 7,000 and then it will be worked back to 3,500 or something?

This is what I just explained in my previous answer, that this is expected to sustain on account of volume increase that is going to happen, which will bring procurement efficiency. Yeah? We were already doing 4,000. We are at 7,000. This year also 7,000 because Q1 has also done well. So, therefore, it is a question of 2028. So, that will be supported by procurement efficiencies because the volumes would have grown substantially by FY28. So, we expect 7,000 to sustain from here on.

Okay. Suppose it's MOI that you're talking with LNC for ammonia terminal, what KPEX are we looking here, sir?

It depends. We have just commissioned one terminal at a cost of 525 crores. So if it's one terminal, then the same. If there are multiple terminals, they will be in the multiple of 525 crores.

This is the similar capacity or this will be a higher capacity?

One. Terminal would be of a similar capacity, but it then depends on what the customer wants. Okay. Okay, sir.

Thank you.

Thank you. Our next question comes from the line of Niloth Palsahu with JM Financial. Please go ahead.

Hi, sir. Good evening. Thank you for the opportunity and congratulations for a very good set of numbers. You've mentioned about ammonia logistics commencing and ammonia distribution as well. Can you throw some light on the economics of both of these streams in terms of expected utilization levels and margins?

Yes, in the current year, we expect around, as we do in LPG, we expect around 25% utilization in the first year, and thereafter growing at the rate of 30-40% year-on-year. Distribution, similarly, we expect somewhere around 200,000 tons to begin with and then growing 20-30% year on year. The margins for throughput, it ranges from around 2,500 to 3,000. In distribution, it could go up to 5,000 rupees, depending on how the market behaves. We will see what it delivers, and then from there on, we can do our projections.

But this is what we expect.

Also, ammonia distribution margins could also be like on a per-turn basis, 5,000. Yes, sir. That's what I said.

5,000 rupees a ton. Up to 5,000 rupees a ton is what we expect.

Got it. Got it, sir. Thank you. That was my question.

Thank you.

Thank you. Our next question comes from the line of Kunal Mehta with Indred Equities. Please go ahead.

Hi, sir. A very good evening and comment on the good set of numbers. My first question is, sir, how much of the improvement in the gas distribution is from operating leverage, that is, you know, optimization of our infra versus the price increase in the market. So if you can give some flavor on the revenue versus the beta on gas.

Yes, so we have already, so it's like energy prices rising and uncertainty element being built into, so the margins have improved during Q4, expected the same in Q1 of the current year. However, as the volumes also have jumped from around 520,000 to 750,000, That has also brought procurement efficiencies. So what was 4,000 and what has become 7,000 currently comprises probably, you can say, part of it on account of volumes and part of it on account of margin improvement. Going forward, I have said that when the crisis is gone, war is no more, and the crisis stabilizes and comes down. By that time, our volumes would have grown enough to get more procurement efficiencies. And therefore, we expect these 7,000 rupees a year average margin to continue going forward. Also, you don't have to see it quarter to quarter. You have to see on an annual basis, Q1 is already good. So, I think somewhat for 26-27, you are already assured of a 7,000 average margin realization. 26-27-28, it will ride more on volumes.

Do you think this show an elevated top line as well? I mean, just because of, you know, increase in the price. So, any idea on how much revenue do we do from the gas distribution? So it is always volume

and price. It's a product of volume and price. So again, repeating the same thing, volumes are expected to grow really significantly over this year and the next. And prices, even though they stabilize going forward, you know, volumes will take care. So, we expect the revenue also to grow year-on-year.

Okay. Sir, and my second question is on the CAPEX. So, we will be doing CAPEX at the Aegis level, Aegis Logistics, and then after creating the asset, will we then transfer it to Aegis 4PAC? Am I right? Yes. Sir, you mentioned in your opening comments that we have about 5,900 crores of cash on the console balance sheet. But I think on the standalone, AGIS standalone level, there is like, I think almost half of that. So, I mean, how much would ALL be able to utilize for building the asset? Please, Good morning, everyone.

Yeah, so when you look at cash, don't look at ALL standalone alone. You also have to look at cash holding in its 100% subsidiaries. So all put together will come to 5,930 crores. 100% subsidiary. Also, you will have to consider the cash held under those

subsidiaries. Okay, so this doesn't include the cash in AVTL.

Consolidation includes AVTL. Sorry, consolidation includes all the cash. AVTL cash is not significant.

And, sir, the EPC is done by ALL standalone or one subsidiary of ALL? It will be done either by AGES

standalone or any of its 100% subsidiary.

So, in the console, do we capitalize at the value at which ALL builds or the value at which we sell to AGES OBEX? At which ALL builds. Okay. Okay, sir. Thank you. Thank you so much. I'll fall back in the queue. Thank you. Thank you.

Our next question comes from the line of Amit Kumar with Determined Investment. Please go ahead.

Yeah, thank you so much for the opportunity. Can you hear me?

Yeah, just one question, sir.

You know, could you sort of quantify any sort of, you know, inventory gains that you had, you know, in this particular quarter?

No. What do you mean by that? You know, there's nothing like inventory gain which we book in PML, yeah?

I am saying that, see, mostly as a, you know, storage, you know, solutions company, you are basically completely working for your clients, but as far as your, you know, distribution is concerned, you would have some inventory, right? And, you know, post the war or, you know, during the quarters, you know, we have seen, you know, crude oil prices, LPG, LNG prices basically go up. Is the value of that inventory, you know, during the quarter, you know, because of the pricing?

No, no, it is at cost only.

Well, I understand that, you know, inventory is at cost. Basically, what I'm saying is that because of the spike in selling prices versus, you know, relatively lower cost inventory, I don't know how many ones of, you know, I mean, how many ones of inventory do you keep, you know,

we keep very low inventory. We are not here to keep more than a month inventory. So, inventories are not long. So, you are right. There is no such inventory gain.

In the month of March, the inventory that you would have sold, you would have bought it in February, right? And at a lower cost, and then obviously in March, because of the Iran war, because of the Middle East war, the prices basically spiked up.

Not necessary February. It could be February as well as March cargo coming in.

Okay. So, there is no, I mean, you know, that inventory gain, you know, like, you know, you have, you know, some of these OMCs basically, which are also, you know, kind of refinery and distribution.

No, this is distribution business. So, how we do it is that we book orders and then we procure. The margins are higher when there are times of uncertainty because energy prices are higher. So, as a percentage, obviously, you will realize more margin because there is an uncertainty element involved. You have to get the product in times of uncertainty. It is difficult. So, therefore, in rookie terms, your margin improves because your energy prices are also very high.

No, I understand that point. Okay, let me sort of ask this differently. You know, pre-war versus post-war, what is the kind of price differential, you know, that you saw, basically, and what is the kind of price jump that you saw, you know, as the Middle East, basically, war, you know, started in late February, basically?

Oh, prices have gone up of all the energy products from $54,000 to all the way to $150,000, back to $80,000, $90,000. Sorry? Energy prices have very fluid. They have gone up from 54,000 rupees or 60,000 rupees per metric ton all the way to 150,000 rupees per metric ton down to 80,000, 90,000 rupees per metric ton. So it is, it varies. Okay. Okay.

Understood. Thank you. That's it for mine.

Thank you. Our next question comes from the line of Rajesh Agarwal from Money Oil. Please go ahead.

My next question, a basic question, and now the government has said today subsidized LPG cylinders will be reduced from 9 to 4. Then the government is taking a step for increasing P&G and all. Will it affect our logistical business? And what gives you confidence of volumes of distribution business increasing? What can be the particular reason? Two questions.

Energy in India per capita is amongst the lowest in the world. We are comparable to Philippines. Second is, it is a developing country, so there is a lot of dependency on dirty fuel, coal, furnace oil, diesel, wooden briquettes, you know, so many, so many products, which as we develop, we have to transit out. The volumes in such dirty fuel is very large. Around 2,000 million tons in coal alone. What are we talking about gas? 50-60 million tons of natural gas, 30-35 million tons of LPG. So there is enough for growth, whatever one may say. You need to have multiple energy sources. So yes, PNG, natural gas, ammonia, LPG, coal, everything will be needed in such a large country as ours. So we are a very large country with large population, with energy needs that are going to grow. We need a lot of products as far as energy basket is concerned, and depending on what is the kind of outlook going forward as far as environment is concerned, the tilt should definitely be towards the cleaner fuel, which are in nature of gas, namely, you know, like I just said, natural gas, LPG, ammonia. And what are the numbers that we are talking of? Still, clean fuel is very, very small numbers, compared to dirty fuel, which are liquid and solid in nature.

Well, one last question, a hypothetical question. Suppose the oil doesn't open for the next three months. Still, we'll be able to recover all our old volumes and grow?

Yes, the supply source has to change. LPG is not only available from Middle East. It's a supply source of convenience. But LPG is available from all over the world. Now it is coming from Canada, America, Argentina, Nigeria, all over the world.

In this crisis, we have seen a change, substantial changes for us, for sourcing.

There has to be, yes, there has to be, going forward, we will have multiple supply source. Understood.

Can I just add one comment here, Murat? One of the advantages of having high-quality joint venture partners like we have with Itochu and with Vopac and so on, it really has given us a tremendous edge in terms of sourcing alternative sources of gas.

Understood, sir. Thank you. Thanks a lot, sir. Thanks a lot.

Thank you. Our next question comes from the line of Nandan, an investor. Please go ahead.

Hello, sir. Am I already? Yes, sir, you are wrong. Okay. Sir, first of all, congratulations on a very, very strong fact. I think I can see from last three quarters, companies delivering around 50% growth on, you know, there on your basis. So, my question is... Since, I mean, we have a 5 billion US dollar capex plan by 2030 December or 531, and assume that majority of the infrastructure will be built by Aegis Logistics or 100% subsidiaries. Plus, we have a distribution segment that is growing well with the margins and the ammonia growth, and there will be growth in the subsidiary, I mean, Wopak as well. So, my question is that, I think, but given the guidance, I think we are giving 25% guidance. I feel it is very, very conservative. I mean, in FY26, also, we have grown 43% at that level. So, I mean, what's the reason for this?

No, no, we are, we are beating our own.

Why don't you increase the guidance, sir?

No, we are a very conservative company, and I think 25% staggered growth is not small. We have achieved 32% last five years. We definitely, again, reiterate. Now, remember, the base is getting bigger and bigger, larger and larger. When we had first given our guidance, we were at an EPS of 6. Now, we are at an EPS of 26. In spite of that, the staggered growth has not changed the guidance. To the gaggle growth is not changed. So that itself is big in that sense.

And my second question is, what's our goal for the ammonia distribution, say, by 2030? I mean, FY28 by FY28, you already said that the gas distribution should be at 2 million volumes. Including the LPG and ammonia. Probably LPG will be much higher as ammonia is at a new stage. So, by F.30, what is our target for, if you can provide LPG as well, that will be very helpful as well.

So, if you look at the DRHP, Chrysalis is an independent agency. In the case of Aegis OPEC had already said by 29, India will have a supply-demand gap in ammonia of around 3 million grams. So we will try our best to see what best, you know, volume achievement we can do by 2930. This will depend on how many terminals we are able to construct and commission, how many locations we get ourselves positioned. So we are very bullish. We have a partner, Itoshu, along with us. They are already now participating in the hard assets also, taking a 10% stake in the PIPOWER terminal. So we are working very hard, but difficult to today project. This is the new product that we have stepped into. But looking at the macros and looking at what lies ahead, we are very bullish.

Thank you very much for the answer, sir. All the very best. Thank you.

Thank you. Ladies and gentlemen, due to time constraints, we will take that as a last question for today. I would now like to hand the conference over to the management for closing comments. Over to you, sirs.

Thank you very much. You know, it's been a very exciting year, a good year for us in terms of the FY26. As Mr. Molladina has indicated, we are confident to maintain for FY27 the same momentum, and, you know, in answer just to the last comment about our guidance and so on, I think our sort of philosophy here at Aegis is really not to overpromise, always to underpromise and hopefully overdeliver. So that's our conservative management philosophy. But I'm confident that, you know, FY27 will continue the strong momentum that we have, and the longer-term perspective in terms of 28 onwards, again, with the strong foundations that we have laid and are continuing to lay and the opportunities that the uncertainty has of the war and so on, that actually that has given rise to many more opportunities. So we look forward to informing you as those come to fruition. So, you know, the record profitability, strong transformed balance sheet, and a clear roadmap for the next phase of growth. That's it. Thank you very much. Have a good evening, and we will speak again next quarter. Thank you. Thank you.

On behalf of Aegis Logistics Limited, that concludes this conference. Thank you all for joining us. You may now disconnect your lines.