Aegis Logistics has a ₹5,000 cr capex plan. Its Kochi project just went backwards.
LPG distribution margins hit ₹7,000/MT and Q4 was a record quarter. But management downgraded the Kochi expansion from 'underway' to 'evaluating' with no explanation.
What's new
- FY26 PAT crossed ₹1,000 cr for the first time, up 41% year-on-year.
- LPG distribution margin rose to ₹7,000/MT from ₹4,000/MT, driven by volume scale.
- Q4 distribution volumes hit 2.34 lakh MT, up 71% year-on-year.
Themes from the call
Margins
Distribution margin more than doubled to ₹7,000/MT on volume growth from 520,000 to 750,000 MT and energy price tailwinds.
Capex
The ₹5,000 crore pipeline through March 2028 is aggressive, but the Kochi reversal suggests not all projects are on track.
New Business
Ammonia logistics entry at Pipavav is first-mover in India, anchored by a 15-year take-or-pay with Hindustan Zinc.
Guidance watch
- Management expects the ₹7,000/MT distribution margin to sustain through FY28 as volumes target 2 million MT.
- Ammonia year 1 utilization target is 25%, growing 30-40% annually thereafter.
Risk flags
- The Kochi project downgrade without explanation raises questions about land or regulatory clearances that may affect other expansions.
- Liquid segment EBITDA fell 5% in FY26 due to new facilities ramping without take-or-pay contracts.
Key quotes
-
"I'm pleased to announce that this development is now underway."
— Raj Chandaria, CMD, Jan 2026 call on Kochi expansion -
"We continue to evaluate the addition of an additional 60,000 cubic meters... and will provide further updates once this is finalized."
— Aegis Logistics management, Jun 2026 call on Kochi expansion
The brief
Aegis Logistics just posted its best quarter ever. Revenue hit ₹2,594 cr in Q4, up 52% year-on-year. PAT for the full year crossed ₹1,000 cr for the first time. The LPG distribution engine is running hot, with volumes up 71% in the final quarter and margins more than doubling to ₹7,000 per metric ton. Management is confident these margins will hold through FY28 as volumes scale toward 2 million MT.
But the capex story has a hole. Six months ago, CMD Raj Chandaria told investors the 60,000 cubic meter expansion at Kochi port was 'now underway'. This quarter, the same project is merely 'under evaluation'. No explanation was offered for the downgrade from construction to planning. Given the ₹5,000 crore capex pipeline through 2028 and the Vadhavan port MoU worth ₹20,000 cr, investors need clarity on which projects are real and which are aspirational.
The ammonia bet at Pipavav is the new growth lever. A 36,000 MT terminal, the first independent ammonia capacity in India, is backed by a 15-year take-or-pay with Hindustan Zinc. Itochu is taking a 10% stake with a path to 25%. The margin structure is richer than LPG, at ₹2,500-3,000/MT throughput versus ₹1,500-2,000/MT for gas. But it's year 1, with 25% utilization targeted.
The balance sheet is transformed, with ₹5,939 cr in cash and investments versus ₹150 cr in FY22. The gearing target is 0.6x. The EPS CAGR guidance is a conservative 25% multi-year, well below the 41% PAT growth just delivered. The business is on a tear. The Kochi question is a small crack in a very large wall.
Aegis is printing cash from LPG, but the Kochi backslide means not every project in the pipeline deserves equal trust.