JSW Infrastructure Limited (JSWINFRA) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the JSW Infrastructure Limited Q4 FY26 Earnings Conference Call posted by Motilal Oswal Financial Services Limited. 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 touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Alok Devra from Motila Loswal Financial Services. Thank you, and over to you, sir.

Thank you and good evening, everyone, and welcome to the 4QFI26 Earnings Conference Call of JSW Infra. We have with us today Mr. Dinkesh Roy, Joint Managing Director and CEO, Mr. Lalit Singhri, Strategic Advisor and Board Member, Mr. Jay Nagarajan, Chief Financial Officer, and Mr. Vishesh Panchnanda, Head of Investor Relations. I would now hand over the call to the management to provide some opening remarks, then we can go with the Q&A. Thank you and over to you, sir.

Thank you, Alok. Good evening, and thank you all for joining our earnings call for the quarter and year ended 31st March, 2026. Against a backdrop of a more complex global environment shaped by heightened geopolitical tensions in the Middle East and moderated global growth, India's macro environment continues to remain relatively resilient, supported by domestic consumption and government spending. During the year, and in particular during the quarter, we navigated a challenging operating environment, and despite these headwinds, delivered a resilient performance across both ports and logistics. Overall, on a consolidated basis, our operating revenue was Rs. 5361 crores for the year, representing a 20% Y-on-Y growth. Operating EBITDA for the period stood at Rs. 2604 crores, marking a 15% increase, while adjusted net profit reached 1644 crores. The Board has recommended dividend of Rs. 0.90 per share, which is 45% of the face value. Let me now touch upon the operating environment and key developments during the quarter, starting with the port's business. As previously disclosed, the company's 5 million ton per annum liquid storage facility in Fujairah Oil Industrial Zone, FOIS, located outside the Strait of Hormor, was impacted following damage to certain infrastructure at the storage facility. The operating environment in the region remains volatile, influenced by heightened geopolitical developments and crude oil price movements. We remain closely engaged with local regulators, port authorities, and the government, who have been continuously supporting and guiding us during this turbulent period. Based on our current assessment, operations are expected to progressively normalize in due course. We will continue to keep stakeholders updated on the developments. During the quarter, we achieved several important operational milestones. We successfully completed the 4.5 million ton JNPA liquid birth modernization project, enhancing our liquid cargo handling capabilities at one of India's premier gateway ports. We also expanded cargo handling capacity at the Enno coal terminal from 9.6 million tons per annum to 11 million tons following receipt of the consent to operate. The NO coal terminal, acquired in November 20, with an installed capacity of 8 million tons and volumes of 3.1 million tons in FY21, stands as a compelling illustration of our approach to value creation. Since acquisition, we have progressively scaled capacity to 11 million tons per annum with volumes of 10.4 million tons, reflecting a proven operational excellence in turning around port and logistics assets with a clear and unwavering focus on improving returns on capital employed. Earlier in the year, we were awarded the SMPA Kolkata Container Terminal Project with a capacity of half a million TUs. Following the signing of the concession agreement, we moved swiftly to accelerate our operational readiness and have very recently received approval to Commons interim operations. This milestone reflects the same execution discipline and operational excellence we have consistently demonstrated at GNPA and Tutorin, the ability to commence revenue-generating operations while modernization works, progress in parallel, minimizing time to revenue, and maximizing returns on invested capital. On our ongoing growth projects, the 302 km iron ore slurry pipeline continues to progress steadily and remains on schedule. To date, 247 km of welding and 235 km of pipeline lowering have been completed, representing approximately 82% and 78% completion respectively. Respectively, strong execution momentum continues with the project on track for completion by March 27th. Once operational, the pipeline will significantly enhance the efficiency and reliability of iron ore transportation, reducing dependence on road and rail logistics, lowering the cost of iron ore movement, and delivering a step change improvement in supply chain predictability for our customer. Meanwhile, the construction activities at the Jatadhar port are in full swing, with pile foundation work of the birds being 80% completed and 7 million cubic meters of dredging being completed, with the target of completion of the entire project by March 27. Our brownfield expansion projects continue to progress steadily. At Jayagart Port, civil works for birth have been completed, with dredging currently around 60% complete. At Dharamtar Port, birth construction and related work is progressing well. Moving on to our logistic business, Navkar reported a strong performance underpinned by healthy volume growth across segments. For FY26, domestic volumes grew by 40% and exam volumes grew by 21% Y on Y alongside a steady improvement in capacity utilization from 44% in FY25 to 56% in FY26, reflecting better asset efficiency and operating costs. Despite headwinds at the Morbi ICD arising from fuel shortages impacting certain customers, Navgar reported operating EBITDA of Rs. 40 crores in Q4 FY26, while full-year operating EBITDA stood at 118 crores versus Rs. 8 crores in FY25, representing a 14-fold increase. In Feb 26, the company has This acquisition has successfully completed the acquisition of 25 rakes with operations fully integrated, effective 1st February 26. This acquisition provides immediate access to Indian Railway's GPWIS and LSFTO schemes, along with long-term operating licenses under these programs. Since integration, the rail rake business has contributed operating EBITDA of Rs. 25 crores. Beyond the existing bouquet of 25 newly acquired and 17 container rakes housed under Navkar, taking the total fleet to 42 rakes, we have accelerated the scale-up of our logistics platform. In April 26, we placed orders for 40 additional rakes, reinforcing our growth momentum. This is aligned with our medium-term objective to meaningfully expand our fleet to around 250 rakes over the next 2 to 3 years. with a clear focus on asset utilization, returns, and earnings visibility. We are also pleased to share that the Gatti Shakti Multimodal Cargo Terminal at Arupanam, Chennai, located entirely on railway land, which was awarded to us in June 24 for construction and operations, has been successfully commissioned and has received approval from Indian railways to commence commercial operations effective April 26. Further strengthening our integrated logistics offering. Our logistics segment continues to focus on rail-centric domestic cargo, while Exim Cargo is driven by enhanced capacity utilization across the network. The cumulative capex outflow on these projects, including acquisitions, is approximately Rs. 6,200 crores. In addition, the company has already committed a further Rs. 5,300 crores of capex by placing orders for machineries, long-lead items, and other civil works towards ongoing projects across ports and logistics business. While our guidance issued in Jan 26 did not factor in developments at the overseas liquid terminal, we delivered in line with our operating EBITDA guidance for FY 26 and continue to maintain our EBITDA guidance for FY 27 and FY 28, reflecting the availability of multiple growth levers. These include higher volumes at Goa, Jaigarh and Paradik, phased deep bottlenecking and cape-sized coal handling capability at Ennore, and the accelerated commencement of interim operations at the SMPH Kolkata container terminal, supported by favorable energy sector dynamics, including higher thermal coal demand in an L-Nino scenario. Hence, consolidated operating EBITDA is expected to grow by 15% to 3,000 crores in FY27 and nearly double from the FY26 base to Rs. 5,000 crores in FY28, driven by port's capacity additions and sustained EBITDA contributions from logistics assets. With this, let me hand over to Mr. Nadarajan to take you through the financials and other details.

Thank you, Rinkesji, and good evening, everybody. Let me first talk about our port business. In Q4 FY26, the company handled cargo volumes of 31.6 million tons as compared to 31.2 million tons in the quarter ended March 25. Volume increase was primarily driven by its strong performance at Southwest Port, Dharamtar, and Jnagarh Port On the bank of higher volumes of anchor customer and was also fueled by start of entering operations at Tutigorhin and JNPA liquid terminal. The growth was largely impacted due to ongoing Middle East conflict, lower volumes at Pujara facility, and cargo deferments at Indian operations driven by lower availability of vessels and higher freight costs. However, the situation has improved from April 26. Group cargo has increased to 17 million tons from 15.7 million tons, representing an 8% growth. Operational revenue for the port segment increased by 12% during the quarter to 1295 crores compared with 1152 crores in FY25. This growth was driven by price adjustments communicated earlier for SWPL Goa, Enor terminals, along with price increase at the Mangalore Container Terminal, effective from Jan. 26. This happened, this announcement, or this was communicated to us in March, 2026, but the effective date was Jan. 26, along with higher ancillary services like storage and transportation offered to domestic customers and higher cargo volumes. The improvement was further supported by sharp INR depreciation. Operational EBITDA for port segment stood at 705 crores, up from 626 crores, a jump of 13%. EBITDA growth was largely driven by increased revenue. Operational EBITDA margin increased by 10 basis points to 54.5%. Talking of NAWCA, it delivered strong operational financial results in Q4 FY26. Total Exim cargo volumes reached 86,000 TUs, representing a 14% YOY growth. Domestic cargo volumes stood at 4,27,000 metric tons, up 56% compared to the same period last year. Overall, capacity utilization stands at 60% for the quarter versus 56% for the whole year. Revenue from operations for Navcar rose to 201 crores, while operating EBITDA climbed to 40 crores, showing substantial improvement, while net profit increased to 14 crores, a significant turnaround from a loss of 19 crores in the previous year. We have consolidated newly acquired rail rates in current quarter with effect from Feb 26. Consolidated operational revenue for the company stood at 1522 crores and the operating EBITDA stood at 769 crores, reflecting a YOY growth of 19% and 20% respectively. Consolidated depreciation was 158 crores and finance cost was 87 crores in the current quarter, as compared to 140 crores and 94 crores respectively in the quarter-hundred March 25. Given the changes in the INR and subsequent changes in the yield curve, we have recognized the MTM unrealized loss of 43 crores. This is essential in non-cash charge and in line with the guidelines of INDS-109. As mentioned by Rinkeji in his opening remarks regarding the damage at Fujaira facility, we have filed an insurance claim and our consultants are positive about the admissibility of these claims. However, as a matter of abundant precaution, we have kept a provision of 68 crores in Q4 FY26. As a result, adjusted PAT for the current quarter stood at 528 crores, which is 15% YOY growth. For 27 and 28, the company plans to invest approximately 16,500 crores with a significant portion around 13,000 crores allocated to the port's business and 3,500 crores earmarked for the logistic segment. Just to reiterate, our logistic segment guidance remains same, which is 400 crores EBITDA in FY27 and 700 crores in F28. However, we have marginally trimmed the revenue numbers to reflect a higher EBITDA margin in LSFTO Rakes business. We have netted off the freight charges from revenue since it is a pass-through. As of March 26, we have a net debt of 3,100 crores with a net debt to operating EBITDA of 1.2x and one of the strongest balance sheet in the sector. This coupled with steadily increasing annual cash flows from the current asset base, we are well positioned to pursue growth plan to enhance our present cargo handling capacity to 400 million ton and in parallel grow our logistics business with a top line of 8,000 crores. I will close the F2030. With this, I request the operator to open the line for Q&A.

Sir, shall we proceed with the Q&A? All right. Thank you. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to please use handsets while asking a question. Ladies and gentlemen, we will now wait for a moment while the questions keep assembled. Our first question comes from the line of Ketan Jain from Aventus Park. Please go ahead.

Thank you. Good evening. Thanks for the opportunity. Congratulations on a good set of numbers. I just wanted to understand the drivers for higher logistics and data margin, which we reported.

Could you please come again?

The drivers for higher logistics, EBITDA margin, higher margin in logistics.

Okay, as I mentioned, this is because of higher capacity utilization at our NAVCAR terminal. Especially for the whole year, the capacity utilization stands at 56%. If you look at F525 capacity utilization, that was around 44%. And for Q4 of F526, the capacity utilization in NAVCAR stands at 60%. On top of it, we have also, as you are aware, we have acquired this rail 25 rakes from our group company. So, that has given an EBITDA of around 25 crores. It was in operation for two months, February and March. We have received all the delivery of all the 25 rakes, and we have also guided around 150 crores of EBITDA for FY27 from those 25 rakes. All in all, this has resulted in an announcement in the EBITDA from the logistics space for Q4 FY26.

Understood. And on the realization front, as you mentioned, it was because of the higher realizations and price increase in Goa and Bangalore container port. Does that drive the 11% increase in realizations in the fourth quarter or what is the reason?

Yes, that is one of the reasons. Apart from that, the Hiramandani one-time income we have booked around 75 crores, which is a part of the take-or-pay contract, and plus forex fluctuations, plus additional storage income we have gotten a few of our ports. So, all these have resulted in an enhancement in the revenue.

What does this one-time item pertain to?

This is not a one-time item. This is a recurring one, but it comes in Q4. What is the nature of this, sir? This is a, I would say, minimum takeover pay contract, which has been signed with H-Energy, wherein they use our LPG terminal at Jaigar.

Understood. Just the last question, I was just reading a media article on some findings of environmental committee at Dharamthar Port. Is there any findings or any takeaway from that, or do we have any challenges in our execution?

So basically, if you see, that was a report that there was some spillover dust on the mangroves. So there were two issues. One is the number of mangroves planted has been tremendous, and that addition has been done. The committee only pointed out that please provide a windscreen so that somewhere this dust doesn't land on the mangroves. That is all, and we are complying with all these conditions. Understood.

So no change in the exhibition timeline, right, sir? No. Understood. Thanks a lot, sir, and all the best for the next year.

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

Sir, thanks for the opportunity for this question, and of course, congratulations to you that despite such a challenging environment, I would say that this 2,600 crores EBITDA guidance was late in the first place. So my first question is around that only. Like, if there had been no such, let's say, pujera link to disruptions that had happened to you, so you may have probably ended up at a slightly more higher EBITDA. So how much higher it could have been? And also, like, what were the levers that observed the negative impact of Pujera in this particular quarter? That's the first question.

So, 30 crores would have been the incremental EBITDA. Pujera plus a little bit of volume loss in our other ports because of rerouting stroke deferment of cargo. So, around 30 to 32 crores is what we would have earned more.

And how did you offset that?

So, you see, we did very well in the segment, logistics segment, where we, as he had explained earlier, there was a tremendous increase in capacity utilization in Q4 and the addition of new rakes altogether. Plus, what we had also provided additional services in many of our ports like Jayagard and at Goa. So, these have helped to drive up the numbers to 2600.

Also, Forex fluctuation was there, which the spike happened in Q4, if you see. So, 16 crores of FX gain we have earned in Q4. That has also contributed to the EBITDA.

Okay. That's very clear. Also, like, if I can ask something like, since you have already spelt out, let's say, your EBITDA guidance for FY28 and also indicated what your EBITDA can be, let's say, in FY30, like, what I understand is a lot of your projects, very large projects, like, let's say, Kenny and Oman, these are coming on stream towards the very fag end of FY30, like, more like end of FY30. So, the effects of this are not really within this horizon. So, can you please comment like slightly beyond FY30, what kind of growth we should see continuing from here? And based on the current project pipeline alone, what can be like a steady state EBITDA, let's say, in the 2050 to 35 period?

I'll just break up your question into two parts, and where I would like to highlight two things. You would have seen that all our projects, the projects that we had lined up up to 28, they're all progressing very well. And in this period between 26 to 28, where we are aiming to go up from 183 to 300, all the projects have progressed steadily, And the CAGR in, you know, revenue in this period will be around 42% and the CAGR for EBITDA would be around 39%. This is the first part I thought I would need to clarify. The second part is about the coming on stream of Kenny and Oman today. So these would be, I agree with you, it would be late 29.30. And they are already, we have got the EC process for both. And Oman will be taking up after the, you know, the current problems are over. And post-2030, that's what you want to know. Post-2030, you see, steel plants everywhere are getting lined up for expansion. So, there we foresee that since we would have created the shell for the ports, you know, adding capacity to the new ports is a less, you know, takes less effort, less capex. So, that is where the other drivers for proof will come. Where currently, let us say, Jakarta is at 33. And when we go into phase 2, we will be looking at adding another 20-30 million tons of capacity. So, that will go up to 60. Similarly, Kenny will be going up from 30 to another, will be adding another 30 million tons of capacity post-2030. So, these would be our path for growth. And what we have also not mentioned here is that the privatization of terminals, that opportunities that are already coming up in major ports. So, here we are one of the strongest contenders. As you know, we are the largest holders of concessions in major ports. We have 10 such concessions, and we will be further adding on to this. So, this would be broadly 400 plus strategy that we are looking at. I mentioned to you, everyone is slated for expansion. So Vijayanagar is slated for expansion from 18 million to 25 million. So 7 million into 3, that is a, you know, net requirement of another 20 million tons of cargo for the plant is going to come up. So, these are these drivers, and in that entire sector, if you look at Kenny, the entire Bellari hospice region is slated for more capacity addition. So, we are very beat on that post-2030 with all the capacity expansions further being lined up, including at Jatadar, at Dolby, everywhere. So, that will be the main drivers for growth. We are looking at 25% CAGR growth, that is the target that we have set for ourselves. So, beyond 2030, we will be continuing to expand in our existing ports that we have created currently, and that we will be pursuing it further.

Okay, that's very clear. Thank you. The next question is from the line of Deepak Morya from HSBC. Please go ahead. Deepak Morya, your line has been unmuted. You may proceed with your question. The current participant seems to have dropped from the queue. Our next participant in the queue for the question is Ronak Mukherjee from BigTet Asset Management. Please go ahead with your question.

Thank you for that. Congratulations to the team for great execution on this quarter. Just a couple of questions and maybe following on from the previous participant. We spoke about the volumes at Kenny, the volume demand. Could we also get some color on the volume demand for Jatadhar, and if possible, sort of an idea how this plays by captive and third party. Secondly, for the Dolby expansion, which ports would benefit from the 5 million ton planned expansion apart from Jaigarh and Dharamthar?

Okay, so currently we have Dolby. Let me start with Dolby. Dolby is getting into expansion from 10 million to 15 million. And in that, we are seeing growth in cargo at Dharantar from 24 to 38. And similarly, growth in cargo at Jaigarh from close to 2021 to around 33, 34. So that would be a net addition of 26 to 27 million ton at both these ports put together. Similarly, at Jatadar, currently the entire focus has been more on movement of iron ore and iron ore pellets. So the initial capacities that have been built up are for movement of these commodities outward from the port. With the setting up of the steel plant, we will be adding on another at least 15 million tons of cargo into the steel plant because this would be primarily import based for coal and fluxes. And that plant is also supposed to scale up very soon. So, first of all, the Jatagar cargo stream currently would be mostly captive, but there is a condition that you can handle third-party cargo with permission from the, from the Meritam Board. So, that permissions, as and when we fully develop the infrastructure, those permissions will be taken. So, that is close to 25% of the capacity that is allowed.

God, no, super clear on Jaigar and Dharam. Just a quick follow-up on Jatadhar, just to understand the flow of materials. So from the slurry pipeline, we have that sort of exiting at the pellet plants, and from there, that goes to Jatadhar port to be exported to third parties or does sort of come back to our group company. Please.

For the vision of RR or for export, all three options are possible.

Got it. Got it. And maybe one last question from my end. So, internally, when we look at greenfield and these brownfield expansions, how do you think about conceptually around, say, returns or ROIC measures? How do we approach them?

So, green field, typically, project IRR, we look at 16% post-tax, and obviously, good IRR is around 20% to 21%. And at brown field, obviously, the capital cost comes down. There, the project IRR itself, post-tax comes around 20% to 21%. Like in case of Jaigarh, what we are doing now, Jaigarh, Dharamtar, the project IRR for all these incremental expansions is around 20% to 21% post-tax.

Thank you so much.

Thank you. Our next question is from the line of Aritra Banerjee from Nomura. Please go ahead.

Yeah, thank you, sir, for taking my question, and congratulations for delivering a very good set of numbers. So my first question is that on the NAFKAR front, the progress and expansion has been quite impressive. So what is the peak level or sustainable level of capacity utilization that we can expect, and similarly, what is the peak EBITDA margin and EBITDA that you would expect from NAFKAR going forward?

So, from NAVCAR, you see, in the existing assets, we would be looking at further upping it to around 75 to 80% capacity utilization. And the numbers, because we are also acquiring one or two terminals in this NAVCAR company, so the numbers we would be looking at upwards of 200 CR in the next two to three years.

Understood, sir. Just one small clarification to this capacity utilization that you mentioned for NAFTA in this quarter. So, would it have been fired by any chance if there were no geopolitical disruptions in this quarter? Or we were still able to operate at the peak utilization that was achieved in this quarter?

Maybe as the actual effects started coming in somewhere in April. I would not say for the March quarter there was much effect.

It would have started coming in April. Impact was there in the first fortnight of April, which subsided by second fortnight of April.

Got it, got it. And just one last question I think you have mentioned before, but just a little clarification, the breakup of the logistics going into SI20 of the overall guidance that you have shared.

Thank you.

So, Navcar would be around 200, close to 200. The rest would be from assets in JSW Infra and Port and Logistics, these two other subsidiaries. Predominantly, it will be coming from the Rake business.

Sir, your line is not clear. You are not audible. You are speaking.

We are not audible.

The participant was asking the question. Haritra, have you had all your questions answered? Take this question later.

Sure.

Certainly, sir. We will go ahead with the next question, which is from the line of Rajeshree Maitra from Incred. Please go ahead.

Hello. Thanks for the opportunity, sir. How much of your revenue is Forex-denominated? Roughly what percentage?

So, F26, it was $84 million. We earned dollar-denominated revenue. Okay.

And I think you mentioned the number, but I didn't get it. For the FX gain this quarter, what is the amount?

17 crores?

1-7.

Yeah.

Okay. Thank you. 17 crores. Okay. Thank you. That's all.

Thank you. Our next question is from the line of Claudia Carpenter with S&P Global. Please go ahead.

Oh, good. Thank you very much. Can you say if you are going to rebuild this era, and if so, how long it's going to take?

Claudia, can you please come again? We could not hear you.

Can you say if you're going to rebuild Atujara?

So, you see, based on our best estimates, keeping in view the entire security issues prevailing there, we expect approximately 50% of operations to recommence shortly, subject to normalization of the environment there. With the balance ramping up in a phase manner thereafter, and while we expect volumes to...

The tanks that was damaged, one tank or three tanks?

So the damage to tanks has been three out of a total 15. Okay.

So are you going to fix them? Are you going to repair them?

Yeah, we're going to fix them shortly, but that can't be done right now, because the situation is not conducive to even get the repair works done there right now. Situation stabilised. Please comment. So once, as I told you, once we expect approximately 50% of our entire capacity to come on stream Very shortly, subject to, as I told you, that things normalize them.

But the three tanks, were they a complete loss?

Claudia, sorry to interrupt, but your line is not very clear. May we request you to please rejoin the queue, if you can establish a better connection. We will proceed with our next question, which will be from Alok Devra from Motila Loswal Financial Services. Please go ahead.

Good evening. So, sir, I just had a couple of questions. So, first on the Middle East disruption, so any impact we are also projecting for 1Q and any provisions or any impact which we are likely to see in the first quarter, if you can highlight on that?

So, first quarter operations are not there. Hello?

No, no. First quarter, I mean, in the coming months, I mean.

Yeah, yeah. For Q1, most probably by, in June, we are planning to commence the operations.

Right, right. So, and, so, for the first half, we should be, after the first half, we should be kind of stabilizing on that.

Yes. Barring the three times. Barring the three times.

Got it. Sure, sure. And also, in the capacity expansion, we have a Oman plant also, which Which will be, Oman unit also, which will be coming from 28 onwards, I mean, 28 to 30 onwards. So, what's the status on that? I mean, would it be a call we'll be taking at that point of time or just any, what's the progress on that?

The concession agreement is under negotiation.

Okay.

Vote concession agreement, yes.

Okay. So, we are kind of going ahead with that or it could be in the, it would depend on how the situation pans out.

So, actually, to look at it, I just wanted to clarify two or three things. One is that this entire ports that is outside the Strait of Hormuz, basically Pujerad, Dibba, and Fakan, and Oman also, the entire ports in Oman. These are all outside the states of Homo, and

they have a lot of strategic value in future.

So, we had gone to the UAE in between, and there we found that the entire UAE government is now focused on developing these ports, including, and I think that would be the same case with the government of Homo, Because you don't have to cross the Hormuz to access any oil facilities or anything there. So there the governments are giving a lot of strategic focus, especially in Fujairah. They have built a railway line, and now that railway line was the lifeline for the entire UAE. They were able to transport containers and everything there. So, in future, the sports would acquire a lot of strategic importance, and I think it's a positive news there. And as Nagarajan had told you, that the concession agreement is under discussion, there are some conditions precedent. So, as and when they get fulfilled, and it's a part of a process, so we will be looking at it very positively.

Got it, sir. Just last question. So, in logistics, we are forecasting a nearly 25% sort of EBITDA margin in 27 and even 28, kind of similar margin. So, the margin in this business would kind of be in that range only or as we scale up higher, there could be a margin kicker in this business as well?

No, it should be around in this range only. But as we scale up, obviously, ICDs will start coming in and the ramp up in ICDs again will be gradual the way you are seeing in Nauka, like 44 to 56 to 60. So, there can be a drop, but so it will be in that zip code of 20 to 25 percentage.

Got it. Got it. That's all from my side. Thank you. Thank you.

Our next question comes from the line of Achal Lohadev with Novama Institutional Equities. Please go ahead.

Good evening, sir. Thank you for the opportunity. Two questions. One, you know, in terms of this Fujairah terminal, what is the nature of insurance arrangement we have? You know, is there just the assets are covered or do we also have the insurance for the loss of profit insurance?

Assets are adequately covered. Loss of profit insurance is also there. But the reason is seeing something like this for the first time or maybe after a very long time. So, we need to take it with a pinch of salt and that's where we have made this provision also in our books to the tune of 69 growths.

The second question I have is with respect to Forex gain. You said 17 growths of Forex gain. Is that part of your revenue and that's why the realizations are higher? Yes. Just a clarification on that. Got it. And if you could split the CAPEX plan, like you said, cumulatively you are looking at spending 16,000 crores. If you could call out what kind of spend we were looking at for FI27 and FI28 and split in terms of ports, if you could.

Yes, so actually we have guided 16.5 spend for the next two years, F27 and F28. The split as 13,000 for ports and 3.5 for logistics.

No, I meant within that, if you could provide the split in terms of year-wide and also port-wide?

So it will be 40% this year and 60% in F28.

Got it. Fine, I'll call back in the team for follow-up. Thank you.

Thank you. Our next question is from the line of Priyankar Biswas with GM Financial. Please go ahead.

Sir, just a quick follow-up question. So, can you tell me about what were the ESOP expenses in FY26, and if there are any ESOPs there we should consider in FY27?

23 crores was the F26 ESOP expense, vis-a-vis 63 in F25. For F27, maybe you can take the same number of around 3. Maybe you can take around 5 crores.

Five goals. Also, one more thing that given you are significantly below your net debt to editor guidance, so you typically say that your threshold level is at 2.5 broadly is what I can recall. So since the balance sheet has some headroom, so are you considering actively any Any acquisitions, or if so, in which space you may be considering, if you are not willing to let's get into detail, at least the space that you may consider.

Acquisitions, yeah, we will be looking at in the logistics space, because there obviously this capex spend also we have given, so it will be a mix of both greenfield, brownfield and M&A opportunities, plus we will continue to bid for all these terminals which are coming up anyway, which are not a part of our 400 million guidance, so there again the spend Thank you.

Ladies and gentlemen, 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.

Thank you, Alok. Overall, we have demonstrated a clear scaling through the ongoing port expansion Thank you. Thank you.

Thank you. On behalf of Motilal Oswal Financial Services Limited, that concludes this conference. Thank you all for joining us. You may now disconnect your lines. Thanks all. Bye.