JSW Infrastructure Limited (JSWINFRA) Q3 2026 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to JSW Infrastructure Ltd. Q3-FI26 Earnings Conference Call hosted by Motila Loswal Financial Services Ltd. As a reminder, all participant lines will be in the lesson-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Alok Tevra from O.T. Lala Assault Financial Services. Thank you, and over to you, sir.

Thank you, and good evening, everyone, and welcome to the QFI 26 earnings call of JSW Infra. We have with us today Mr. Rinkesh Roy, Joint Managing Director and CEO, Mr. Lalit Singhvi, Strategic Advisor and Board Member, Mr. Nagarajan Jay, Chief Financial Officer, and Mr. Vishesh Panchananda, Head of Investor Relations. I would now hand over the call to the management to provide some opening remarks, and then we can proceed to the Q&A. Thank you, and over to you, sir.

Thank you, Alok. Happy New Year, and happy Mathur Sankranti and Kongal to you all and your families. Good evening, and thank you all for joining our earnings call for the quarter and nine months ended 31st December. The global economy remains in a phase of gradual adjustment shaped by uneven growth across regions, stabilizing monetary conditions, and ongoing geopolitical uncertainties. Global trade continues to be a key engine of economic activity, supply chain, and customer diversification, gaining importance in the global trade. India's economic environment remained resilient, supported by strong domestic consumption and sustained government spending. Exceptionally low inflation, with CPI in the vicinity of 1%, provided room for monetary easing, enabling the Reserve Bank of India to further cut the repo rate by 25 BPS in December, while maintaining a neutral stance to balance growth and stability. On the rail cargo side, different initiatives like the Liberalized Special Freight Train Operator Framework are encouraging private participation and specialized wagon investments. These schemes are already showing traction with new operational flexibility introduced under LSFTO to optimize steel and bulk cargo movements. Indian Railway's freight performance continues to strengthen India's economic backbone, with cumulative loading this year crossing the 1 billion ton mark in November 25. At JSW Infrastructure this quarter, we strengthened our presence across both business segments, ports and logistics. In the port's business, we have entered into an agreement with Mineral Development Oman to develop a greenfield port with a capacity of 27 million tons per annum, backed by an investment of USD 419 million. Additionally, I am pleased to share that we have successfully completed construction at the JNPA liquid terminal, and a final commissioning certificate is awaited from the authorities. Regarding our ongoing projects, the 302-kilometer iron ore slurry pipeline continues to progress steadily and remains on schedule. To date, 227 kilometers of welding and 205 kilometers of pipeline lowering have been completed. One of the key long-lead items, the electrical pump, has also been delivered to site. The project is on track for completion by March 27. Once operational, it will significantly improve the efficiency and reliability of iron ore transportation. Meanwhile, the construction activities at the Jatadhar port are in full swing with pile foundation work completed by 40% and 5.6 million cubic meters of dredging being completed with a work completion target of March 27. As communicated earlier, our operations and maintenance contracts in the UAE at the ports of Fujairah and Dibba have delivered strong operational performance. Notably, the port of Fujairah has exceeded its minimum cargo volume commitments, reflecting strong throughput and efficient handling. This outperformance resulted us to benefit from a share in the profitability generated from the incremental cargo of 0.8 million tons, further enhancing the commercial value of our engagement at the port. In our logistics business, we have expanded into the rail rate segment by acquiring 100% equity in three entities from the group at an enterprise value of Rs. 1212 crores. This acquisition provides immediate access to Indian Railways GPWIS and LSFTO schemes along with long-term licenses under these programs. The target entities hold a fleet of 22 rigs as of December 25, with three additional rigs to be delivered this quarter, taking a total count to 25 rigs. We expect the closure of the acquisition shortly. Additionally, our subsidiary Navkar Corp has received a letter of acceptance for the development of a Gati Shakti multimodal terminal on railway land at Sumatana. At Kourtini, which is near Bellari, first container rate was flagged off, marking the first private rail terminal in the region. At GCT Orkonam, the setting up of railway track work is 90% completed, and we expect the rail operations to commence in Q4 of FY26. Overall, JSW infrastructure handled 90 million tons of cargo during the period April to December 25, marking a 5% year-on-year growth. The growth was driven by strong performance at Southwest Port, Dharamkar Port, and interim operations from JNPA and Tutikorin, while the growth was offset by subdued cargo volumes at the Paradeep Iron Ore Terminal, which saw a decline of approximately 3.9 million tons due to challenging macroeconomic conditions in the seaborn iron ore export market. However, the recent monthly trends in Paradeep Iron Ore are encouraging with monthly volumes of 0.8 million in November and 1 million in December. Logistics segment, which is mainly NAFTA, delivered a standout performance during the period April to December FY26 marked by a strong operational volumes. The total exempt cargo volumes reached 245,000 TUs, representing a robust 23% Y-on-Y growth, and domestic cargo volumes stood at 1.07 million tons, up 35% compared to the same period last year. The operating EBITDA for the 9 months stood at 78 crores. Overall, on a consolidated basis, our operating revenue was Rs. 3839 crores for the 9 months of FY26, representing a 20% Y-on-Y growth. Operating EBITDA for the period stood at 1.834 crores, marking a 13% increase, while net profit reached 1.123 crores, reflecting a strong growth of 11%. Following a detailed review of the progress achieved across our port expansion and capacity enhancement projects, and in light of the strong and consistent performance delivered by the logistics segment, We have gained improved visibility into a medium-term growth trajectory. In parallel, we have been cognizant of the feedback from many of you regarding growth outlook for FY27 and FY28, with FY28 representing a landmark year in our expansion journey. Taking this external feedback together with our internal assessments and operating momentum, we are pleased to formally articulate our operating revenue and EBITDA guidances for FY27 and FY28, reflecting disciplined execution and a continued focus on value-accreditive growth. We are targeting a consolidated revenue of Rs 5,400 crores and operating EBITDA of Rs 2,600 crores for FY2026. Building on this FY2026 base, we anticipate EBITDA growth of approximately 15% in FY2027 and expect it to double approximately by FY2028. This outlook reflects our confidence in strong operational performance, clear visibility of growth projects in the port business, and our ability to transition rolling assets from capex to EBITDA contribution in the logistics segment. With this, let me hand over to Mr. Nagaraj to take you through the financials and other details.

Thank you, sir, and good evening, everybody. Let me first talk about our port business. In Q3-F526, the company handled cargo volume of 31.7 million tons as compared to 29.4 million tons for the quarter ended December 24. The 8% volume jump was primarily driven by strong performance at Goa-Daramthra port and also overseas operations. Additionally, interim operations at Tutikorin Terminal and JNPA Liquid Terminal contributed positively. Despite the strong contributions from key ports and terminals, growth was impacted by low volumes at our Paradip ports, which is the iron ore and coal terminals. Third-party cargo went up to 15.7 million tons from 14.3 million tons, representing a 10% growth, and the share of third-party volumes stood at 50% versus 49 a year ago. The growth in cargo volume and the change in volume mix resulted in a 9% YOY increase in operational revenue which stood at 1164 crore in Q3 F526. Operational EBITDA for the port segment was at 611 crore, up from 570 crore and increased by 7% on the back of strong operational performance at both Dharamtar and Southwest ports. Navcar Corporation delivered strong operational financial results in Q3, F526. Total exempt cargo volumes reached 85,000 TUs, representing a jump of 19% YOI basis. Domestic cargo volumes stood at 4,05,000 tons, up 45% compared to same period last year. Revenue from operations for Naukar rose to 186 crores, while operating EBITDA jumped to 33 crores, showing substantial improvement, while net profit increased to 9 crores, a significant turnaround from a loss of 11 crores in previous year. Total consolidated operating revenue for the company stood at 1350 crores and total operating EBITDA stood at 644 crores, reflecting a worldwide growth of 14% and 10% respectively. Consolidated depreciation was at 164 crores versus 138 crore previous year, increase being primarily on account of consolidation of Naukar cost and capitalization of our covered shed project at SWPL Goa. Finance cost was at 79 crores in the current quarter as compared to 97 crores respectively in the quarter ended December due to retirement of a commercial paper of 1000 crores. During the quarter ended December 25, we recognized a forex loss of 14 crores, primarily driven by the fluctuation USD-INR exchange rate. This is a non-cash accounting adjustment in accordance with India is 109. In contrast, the same quarter last year recorded a loss of 159 crores. Almost 32 crores we have also transferred to OCI. As a result, PBT for Q3 F5 26 stood at 446 crores, compared to 276 crores in Q3, showing an increase of 62% YOY. So, effective tax rate for Q3 stood at 17%, as compared to a tax credit of 56 crores in the same period last year. The tax credit was due to recognition of credits related to ESOPs in Q3 last year. Pat for the current quarter increased by 9% at 365 crores, as compared to 336 crores in the same period last year, driven by higher EBITDA. The aggregate financial commitment across all growth projects, encompassing awarded work orders and procurement of materials, stood at approximately 4000 crores and a capex spend of 13383 crores up to December 2025. As of December 25, we have a net rate of 1,888 crore, with a net rate to operating EBITDA of 0.76, and one of the strongest balance sheets in the sector. This coupled with steadily increasing annual cash flows from the current asset base, we are well positioned to pursue a growth plan to enhance our present cargo handling capacity to 400 million ton, and parallelly grow our logistic business. With this, I request the operator to open the line for Q&A. Thank you.

So, shall we open the floor for questions?

Sure. Yes, please.

Thank you very much. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question, may you 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 use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question is assembled. Participants, you may press star and one to ask the question. First question is from Nama Sumit Kishore from Access Capital. Please go in.

Good evening. Good to see that the commissioning timelines for your major port projects are largely unchanged. Could you help us with the CAPEX in the nine-month period split into ports and logistics? And what is your guidance for FY26? You had mentioned about 55 billion rupees on the previous call. Also, I see that you are giving guidance for 2026 to 28 for the port and logistics business on revenue EBITDA. It will be great if you can also spend out your CAPEX targets for FY27 and FY28 across ports and logistics. That will be my first question.

Yeah, so for FY26, we expect a spend of 3,500 crores, primarily 2,000 crores on the port side and 1,500 crores on the logistics space. In logistics, we expect a closure of the transaction which we announced in December in this quarter. So, that itself will be at 1,200 crore outflow. So, 3,500 crores spent for FY26 and FY27 to FY28, both the years put together, we are saying that port spend will be around 13,000 crores and logistics spend will be 3,500 crores.

Okay.

Your FI26 target for CapEx seems to have come up by about 20 billion rupees versus earlier guidance. It was 40 billion rupees for ports and 15 billion for logic stakes. Is there any specific reason for the port CapEx to have reduced?

So, orders, the purchase orders have been raised, as I have already highlighted. It is just that the payout has been deferred. Because we have gone for some bank guarantees and MCs and all. So, payouts we have deferred to the next two years. But the purchase orders are, raising of purchase orders are on track.

And just to add on the logistics segment, we have actually been better than the guidance because there is an acquisition into place.

Yes. The second question is, you know, you had reduced your volume growth guidance to 8% to 10%. The impact on Paradis, coal, and iron ore is well noted. But now, is the revised target lower? Because the fourth quarter ask seems to be quite high, with even 8% growth.

So, we'll be looking at, you know, a reasonable target of around 123 million tons for this year, and for the coming year, which would be in the range of 6 to 7 percent, and then on, we'll have a massive ramp up to 165 to 175 million tons.

And 528.

That's FY20, correct. So, as you've seen, we did a remarkable turnaround in Nafkar. So, what was, you know, earlier when we took over the company, it was doing around 3 crore per month EBITDA. We have now gone up to around 13 crores, and that journey is still ongoing. So, for FY27, we are looking at broadly in the range of 450 to 500 EBITDA for NAFTA, and between 750, for the entire logistics business, and 750 to 800 for the entire logistics business in FY28.

Yeah, so what I was asking is that how much of this EBITDA projection is from what you already have in terms of the real businesses required from the group, NAVCAR, or is some other acquisition or non-linear growth required to reach this target?

Yeah, so 160 crores is what we are expecting for FI27 from NAVCAR, taking a run rate of 40 crores per quarter. And already we have guided the market that 150 crores we will be getting on the 25 rakes which we will be buying from JSW shipping. So that takes me to 310. And we are placing orders for additional rakes because that also is something which we have guided the market that overall we will be having 67 LSFTOs stroke GPWS rakes. So, as a part of that story, incremental orders will be placed for LSFTO rates and container rates, which will commence from February onwards, placement of orders. So, all these rates, obviously, the delivery will start by, say, August or September. So, all in put together, we can expect this EBITDA is what we have guided.

Got it. Thank you, and we should all do this.

Thank you. Next question is from Llanopriyankar Bitswas from GM Financial. Please go ahead.

Thanks for the opportunity, sir. And of course, I would say quite a good turnaround in NAFKAR in particular. My question actually builds on, let's say, Sumit's question earlier. Since you have given us more or less a roadmap like 700 crores of EBITDA in logistics, can you further elaborate like how does this 700 crores go to, let's say, the eventual target of 2,000 crores? What sort of contributions will come from the GCTs, the containers? If you can share some more details, like GCT economics, how does it work?

Broadly, if you look at the entire logistics business, there are three main components. One are terminals, and number two is the rates, and number three are the physical containers. So these are the three main components which drive the logistics business. So in each of the three components, we have fixed the target ratio so that we end up broadly having around 25 terminals across India in the next three years. Similarly, the rake fleet, we are looking at upping it over 200 plus, including LSFQ and container rakes, and the physical containers, that we are looking at upping it to close to 8,000 to 10,000 acquisitions over the next three years to get into that EBITDA number. So, as and when we have been applying and getting all these terminals through bids and acquiring something, so these numbers are holding true, and we are finding that we will be able, comfortably, be able to achieve this time.

So, Sri, if I may just ask with 25 terminals, let's say, when you put it in place by FY29, what sort of EBITDA we should be able to make in the terminal space itself?

So, Priyankar, so roughly just to give a break up, so 50 container rates, we are targeting at 200 crores EBITDA from FY28 perspective, I'm sorry, 50 container rates, container rates and 50 LSFCO rates, we are looking at around 275 crores of EBITDA. Just a break up, I mean, so that 200 plus 275 stands at 475. Now, our car already will cloak around 180 crores in FI 28 plus the terminals like Kurtini and a few more which we have, that will all take us to 700 crores. And these are all terminals which are growing up and we'll be having around 6 to 7 of them which will all be in the expansion phase. Gradual ramp up phase is what I can say. So, the drivers which for the first two years will be coming from this container rates and LSFTO rates because the lead time is just a few months. Whereas the ICDs and the CFS, the driver, EBITDA driver will be coming more in FY29 and FY30 because by that time the construction would have happened and the contributions in EBITDA ramper will begin.

Okay, okay, that's very clear. So, broadly, it would mean like in a steady state, maybe almost close to, let's say, a thousand dot cores can come from the terminals itself, like broad understanding, like a .30 or something.

And stopping at this 50 rakes on container and 50 rakes on LSFTO. Obviously, it's a matter of as and when the roofs are mapped in, we can always go and buy out more container rakes and more LSFTO rakes.

And if I may just squeeze one more in. So, for the port segment, you are roughly highlighting 2,485 crore in FY26. And then these ports advertise crossing 4,000 crore levels in FY28. So, if you can elaborate, which are the key ports, in your opinion, or let's say contributions from study pipeline, if that is included. So, how do we reach these 4,300-watt levels? So, if you can just enable it a bit. That's my last question.

Yeah, so Slurry, you know, we have a take-or-pay contract which can throw out 800 crores if constructed on time. Jatadar can give another 300 to 400 crores. And the rest of the two brownfield expansions which are happening at Dharamtar and Jaegar can give out the balance numbers. With a 50% capacity utilization, because we expect the steel business to commence in the second half. So that is the way we have calibrated our numbers for these two, of course, I.E. Jayagar and Dharamatar.

Okay. That's a very clear, sir. Thank you for the detailed answer.

Thank you. Next question is from line of Aditya Mongia from Kodak. Please go ahead.

Hi, good evening, everyone, and thank you for the opportunity. I'll go ahead with my questions. The first one being on the port EBITDA margin, it seems as if there's been a worldwide decline that has happened. So just wanted to get a sense as to what is driving it. Is it something linked to pricing trends that you are discovering or other factors beyond it?

So, the growth, if you see, has mostly come from low EBITDA terminals at JNPT or at Tutikorin, and that is the main reason why you're getting the EBITDA margin is lower. It's not a major lower, but marginally it is reduced.

Also, in Q3 of this financial year, in one of our MBCs in Jaigarh, we have taken a repair of 8 crores. So, that was a one-off item incurred in this quarter. Also, in Paradeep coal terminal, we have taken some maintenance, primitive maintenance to the tune of 8 crores. So, these are two expenses to the tune of around 17 crores, which have been incurred in these ports, which have been booked in Q3. So, this is like a one-time spend, I would say, which should not be kind of taken that it will be recurring in nature. So, to that extent, there is a distortion in a percentage.

Could you also clarify, what is the data from an e-subcharge perspective on a Wi-Fi basis in third quarter?

So, last year it was 15.37, current year it is 5.38.

I'm just talking about Q3, Q3.

So, net effect of our current cost, yeah. Understood. Just a last point of clarity, and maybe then we'll come back in the queue. Thank you. Just focusing on the stand-alone financials, which in my sense represents more – your Goa operation, correct me if I'm wrong over there, but it seemed as if the incremental gross margins were quite limited over there. Is it trying to get a sense of whether there is anything to read over there or not? It's a small thing, just trying to clarify stand-alone operations and incremental margins on a wide-wide basis.

We couldn't get you. Could you please repeat what you said?

The standalone margins are incremented sales and, let's say, incremented lipids are coming on a while. This is pretty low for the third quarter as well as for a nine-month period. Just trying to get a sense of what's driving the same.

So it is more to do with the mix, which is again from the subsidiaries only. Otherwise, there is nothing much to infer on that.

So, thank you for your response. I'll get to the community. Thank you.

Next question is from Llanap Achal Lahade from Nuama. Please go ahead.

Yeah, good evening. Thank you for the opportunity. Just one quick clarification. You said EBITDA to grow 15% YY in FI27 and double in FI28. Do you mean doubling from FI26 or doubling from FI27?

FI26. Doubling from FI26.

Understood. Thank you for that clarification, sir. The second question I have with respect to the target capacities, you know, does it require now more, you know, acquisitions to achieve the same, or we are broadly through now the focus is entirely only on executing the existing project?

So, we are broadly through, we are now totally focused on completion of these projects, and like as I told you, the slurry pipeline, Jatadar, the terminals, one of the terminals which we have taken on Triple P, it has already, it's, you know, on the verge of commissioning. So, we are broadly on track into completing and executing these projects on time.

While the focus is on completing the projects, we will also be participating in the PPP process, and if any good opportunity comes up, we will definitely be bidding for those.

So, if you would have seen our presentation, 400 plus is what they will be adding on, these triple P projects will be adding on, beyond the 400 million ton capacity that we are targeting.

Right. I was to ask the second question that only, sir. What is the house of momentum? Has it, like, considerably slowed down compared to what people are hoping for, say, about three quarters back?

No, if you look at it, we won the bids for birth 7 and 8 in Shama Prasad Mukherjee Port, and now we are looking, we have again applied for another bid in the same place. So, we are on track and we are, you know, evaluating each opportunity as and when it comes.

Understood. And just one more question, with respect to the tariffs, you know, Okay. First, earlier, some thoughts about we would be able to reprice or have the freedom to charge the tariff that the major port terminals would be operating. Any clarity on that?

So, as we clarified earlier also, so these are in the new MCA. So, the two terminals that we are talking of, JNPA and Tutlicorin, as well as the one which we won in Kolkata, all the three terminals have this clarity on free pricing. Right. What about existing, is there any case of that getting into the winter? That is an issue that will be, you know, taken, a call will be taken by the ministry. So, we can't really, you know, base our entire business on when that's going to happen. So, the new ones are on this policy.

But is the discussion on? I wanted to check if there is any advance change or anything.

So, that discussion is on, but we can't really tell you a date or something on that.

Yeah, that is right, sir. All right. That's all from my end. Thank you so much.

Thank you. Next question is from Lanav Ketan Chain from Aventus Park. Please go ahead.

Thank you. Sir, just a question on the expansion capacities of Slurry Pipeline and Zatada port. I just wanted to understand how much of the cargo in these ports on these infrastructure assets is towards our group cargo from JSW Steel in the Slurry Pipeline So,

the slurry pipeline and Jatadar, as of now, in the initial period, it will be entirely grouped. So, we should have clarity on that. The slurry pipeline is built primarily serving a captive mine to a captive port. So, these quantities will be on the group card. So, we expect, let me also further clarify to you, we expect that in, you know, by 27-28, we should be landing up into 53-55% group versus 47-45% third-party because of these two developments. Understood.

And so, sir, is this dependent on existing facilities of JSW Steel, or is it on an expansion project in Odisha, with which these assets will be utilized?

So, these are with the existing mines, iron ore mines at Noa Gaon, and JSW has got iron ore mines at Noa Gaon. So, that is connected, the iron ore movement is connected to that particular set of mines. And the movement further will be depending on Dolby or Vijayanagara, depending on the demand.

Understood. And just, so will this cannibalize the cargo from Paradeep Ayanore, terminal which we already have?

No, this is a separate stream of cargo.

Understood.

Because in the current period, most of the cargo that we got at Paraty were mostly third-party cargo. It was less of group cargo, so there's absolutely nothing that we're looking at cannibalizing from Paraty.

Understood, understood. Thank you for the response. Just one last question. If you could help me understand the railway rakes segment which we are entering in about the acquisition, the rationale and the opportunity size in this, if you could just explain a bit about the business model and how attractive this is.

So, basically, there are two major components on this rake that we have acquired. One is called something called the GPWI scheme. So, these are called general purpose wagon investment schemes. So, these are currently operating in the eastern area, that is, they serve BPSL and Paradi Port to Bengal, they carry clinker. So, it's a broad, triangulated kind of movement that is done. The balance is of LSFTO wagons. So LSFTO wagons have two components. Here again, we have one group of wagons which deliver iron ore to Vijayanagar and we have another set of wagons which carry finished steel. So, if you look at it, the rationale was that Vijayanagara currently in India is now ramped up production to 18 million tons per annum. So, this has now become a single point where you are looking at, you know, an output of 1.5 million tons of steel coming out from that plant. And in that, the majority is being carried by Indian railway rakes or by road. The movement through these specialized wagons are very less. So that is where we want to enter, and we want to further ramp it up, as we had told earlier. So these numbers we are looking at ramping it up from 25 gradually to 50 and then further onwards moving it up. Similarly, Dolby on the west coast is also ramping up its production from 10 to 15. So every month you are looking at output of a million tons plus coming out from these two locations. And that is where we thought that we will enter into this area.

Understood, sir. Thank you. I will get back in the queue.

Next question is from the land of Aritra Banerjee from Nomura, please.

Yes, thanks for taking my question, and congratulations on a good quota with a strong set of numbers. My first question is regarding the slurry pipeline. If you could please provide a bit of color regarding the, you know, the kind of margin profile or the return profile that one might expect from this asset? Two-thirds.

So margins will be around two-thirds.

Two-thirds, okay. And another question is based on the guidance that you have given for FI 26, based on that, you know, for POQ, there seems to be a bit of a higher growth rate, around 20-21%, if my calculations are correct. Could you please shed some light on, you know, what will be driving this high sort of growth rate in the fourth quarter for us to meet the guidance for FI 26?

Yes, so every year we have been booking in the fourth quarter an income of around 70 to 75 crores, which accreeds from one of our contracts in the LNG terminal, which we have at Jaigar. So this year also it won't be much different because we have a take-off-away contract with one of our customers at Jaigar that will be a lump sum income which will be booked in Q4 to the tune of around 70 to 75 crores. So, that is what is doing your Q4 a bit favorably.

Understood. I have a second quiz and one last question. So, regarding the logistics business, so our 2030 roadmap states a target of around 8,000 crores of revenue, and based on the guidance that they've given until FI28, so that still, you know, fanciates into sort of a very steep required revenue for the remaining two years, that is FI29 and FI30. So, will we be including any sort of inorganic acquisitions to reach a longer roadmap target, or would it be coming through all the assets that we already have acquired or we have under us?

So, there will be further acquisitions or construction of CFS stroke ICDs, which will be ongoing. And as I said, what we have already announced, that ramp-up itself will be happening from 28 onwards gradually. Point number one, plus acquisition of further container rates and LSFTO rates will continue.

Got it. You got it. Those were my three questions. Thank you, and all the rest for the remaining content.

Thank you. Thank you very much. Next question is from Landon Mohit Kumar from ICICI Securities. Please go ahead.

Hi. Good evening, sir. Thanks for the opportunity. My first question is, what kind of numbers or volumes you are baking in from Jagad and Dharamtar due to steel expansion at Dolby? And do you see any risk of delay in steel expansion by six months or sort of? Because it will start affecting our FY28 numbers, yeah.

Around 10 million is what we have baked for FY28. Plus, our understanding is that even if steel business has to start, the working capital accretion should commence a quarter before. So, that is the way we have done our workings.

Yeah, just to add, see the peak cargo that can come is close to 27 to 28 million tons. But in this guidance, you know, on a very conservative side, we have assumed only 10 million tons in first year, which is financially at 28. So just to make a case, if there is a delay of one or two months, even up to six months, this 10 million ton is very, very safe and conservative. That is how we are looking at it. But if you ask me the what is the peak potential, this would be 27 to 28 million tons.

My second question is you are acquiring JSW real business, right? What is the gross block of the asset you are acquiring? And are there any other JSW group which has similar real business outside of this particular transaction?

So, gross block is around 830 crores, and as we speak, we have already gotten around 22 rakes, and two rakes are expected to come this month, and one rake is expected in February. So, put together, it will be around 830 crores, inclusive of GSD.

My question is, are there any other businesses which also have similar logistics business which you might be interested in? I think the shipping also has some shit, right? Is there any plan to get into shipping and etc.?

No, no. No, we are not getting into shipping.

Understood, sir. Thank you, all of you. Thank you.

Thank you very much, ladies and gentlemen. Next question is from the line of Alok Devra from Motila, Lusval, please.

Yeah, good evening, sir. Thanks for the opportunity. Just one question I had, most of the questions were answered. Thanks for giving this year-by-year, you know, assessment on how the ports business and logistics business will shape up. So, my question is more pertaining to FI28, where we see a really sharp jump in the port revenue as well as in the logistics business. So, just wanted to understand how that will come because we are looking at almost a 65% plus growth in revenue across the ports side and even at the consolidated side. So, how are we looking at it?

Yeah, look, I think in one of the answers, Nagarajan actually articulated, there are four projects which will contribute to this incremental or the large bump which we are talking about from 37 to 38. So one of them is the slurry pipeline project, which is, you know, on take or pay contracts. So your revenues and EBITDA are almost sure. Then we have Jatadhar port, which is, again in our guidance, we are very conservative, building only to 10 to 12 million tons of cargo, and then the Jaigarh and Haramthar expansion, two projects put together. So this chunk of four projects provides you a meaningful growth in FI-28.

Yeah, and point to be noted is, in all these four projects, there is no concept of royalty. Yeah. So, per se, in all these 4% EBITDA margin will be elevated.

Yes. Sir, just one last question. In logistics, even in FY28, we are capturing around 20% or slightly lower than 20% margins. If I just take the revenue and the EBITDA guidance which we have given out. So, you know, in FY30, we are almost looking at a 25% EBITDA margin. So, what would really change there that we are looking at a 600-700 basis points improvement in the two-year period from 28 to 30? Because by F528 itself, our logistic business will be quite stable. So, the margin should be ideally the stable state margin. Yeah, that would be my question.

Yeah, so F527 and F528, if you see the revenue as well as the EBITDA is primarily driven from acquisition of this container rates And just to give a split between an elevated 27 EBITDA margin versus a bit lower 28 EBITDA margin because the focus will be more on LSFTO rates. As you are aware, for GPWS, there is a moratorium. And from an EBITDA percentage perspective, the first 25 rates which we have acquired, 19 are under GPWS and 6 will be under LSFTO. And in LSFTO, the margins are slightly lower vis-a-vis under GPWS. GPWS, the margins are typically higher. So in our total pack of 50 rates, 19 rates which will be there in FY27 will continue in 28 also, but the incremental 25 rates is all for LSFTO, wherein the margins will be lower. So that is where you can see the logistic business margin is slightly dropping from FY27 to FY28. And to answer your second question on the overall margins moving up from 20% to 25% is, the ICDs and CFS, revenue, stroke, income, EBITDA, will accrete in FY29-30, which will all be under construction and under ramp of pace from 27-28 onwards.

So, generally, the clearances to get the permission for ICDs and all, they generally take one and a half to two years. So, that is where you will have the terminals and their conversion into ICDs, there being a time gap in that.

Sure, sure. Got it, sir. Thank you so much, sir, and all the best.

The conference, go to the management for closing comments.

So, as we have been, and I have been repeatedly stressing, there are three main, you know, focus areas for the management team, and that we have been continuously trying to do. Number one, early completion of projects, which will result in doubling of EBITDA by FY28, the focus on ramping up of our logistics business, which are rolling assets in nature, and will result in immediate, you know, conversion to EBITDA, and the third is on efficiency gains. So these are our three prime focus areas, and we remain committed to it. Thank you.

Thank you very much. On behalf of Mutila, also Financial Services Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.