Whalesbook
📉 The Financial Deep Dive
The Numbers:
Aegis Logistics Limited has reported stellar financial results for the nine months and quarter ending December 2025 (9MFY26 and Q3 FY26), achieving its highest-ever EBITDA and PAT for these periods.
9MFY26 Performance: Revenue grew 13% YoY to ₹5,739 Cr. Normalized EBITDA surged 26% YoY to ₹929 Cr, while Profit After Tax (PAT) saw a remarkable 39% YoY increase to ₹652 Cr.
- The Liquid Division's EBITDA grew 17% YoY.
- The Gas Division's EBITDA jumped 31% YoY, propelled by a record 91% YoY increase in logistics and distribution volumes.
Q3 FY26 Performance: Revenue saw modest 1% YoY growth to ₹1,725 Cr. However, normalized EBITDA rose significantly by 29% YoY to ₹326 Cr, and PAT jumped 46% YoY to ₹233 Cr.
- Both divisions achieved their highest ever Q3 EBITDA.
- The Gas Division's logistics volumes grew by a record 44% YoY.
FY25 Performance: While revenue declined 4% YoY to ₹6,764 Cr, profitability improved substantially. Normalized EBITDA increased 16% YoY to ₹1,173 Cr, and PAT grew 17% YoY to ₹788 Cr.
The Quality:
- Margin Expansion: The robust growth in EBITDA and PAT, outpacing revenue growth in most periods, indicates significant margin expansion. For instance, Q3 FY26 EBITDA margin improved to approximately 18.9% from an estimated 15.1% in Q3 FY25. The overall FY25 EBITDA margin stood at an estimated 17.3%.
- Balance Sheet Strength & Investment: Total Assets expanded by a significant 39% from FY24 to FY25, reaching ₹11,233 Cr. This was driven by increased Property, Plant & Equipment (₹5,070 Cr) and Capital Work in Progress (₹1,308 Cr). Total Equity also grew to ₹5,722 Cr.
- Cash Flow Dynamics: FY25 saw a substantial outflow in investing activities of ₹1,463 Cr, reflecting aggressive capital expenditure. A net cash outflow of ₹1,283 Cr from financing activities indicates the funding mix, including increased borrowings. The company's total borrowings stand at ₹2,884 Cr (₹2,353 Cr non-current, ₹531 Cr current) in FY25.
🚩 Risks & Outlook
Specific Risks:
A notable point is the 4% YoY decline in revenue for FY25, despite strong profit growth. This suggests that efficiency gains and volume increases in higher-margin segments like Gas are currently offsetting lower overall throughput or pricing pressures in other areas. The significant increase in total borrowings to ₹2,884 Cr to fund ambitious expansion projects requires close monitoring. While expansion is critical for future growth, it introduces financial leverage risk, necessitating careful management of debt-to-equity ratios and interest coverage. Execution risk remains for the timely commissioning of new liquid capacity at Mumbai Port and JNPA, and the Ammonia terminal, slated for Q1 FY27.
The Forward View:
Investors will be closely watching the progress of the new liquid capacity additions at Mumbai Port (61,000 KL) and JNPA, alongside the Ammonia terminal, which are expected to commission in Q1 FY27. These projects are crucial for unlocking future volume growth and revenue streams. Aegis Logistics' strategic vision to be a leading network of tank terminals and distribution facilities, supporting India's energy transition, positions it well for long-term opportunities. The company's ability to leverage its expanded infrastructure effectively and manage its debt prudently will be key determinants of its future financial performance and shareholder returns.