Aegis Vopak Terminals Ltd Management Discussions

Introduction

Indias logistics sector is undergoing significant structural change, driven by rising industry demand, operational integration, and consistent government support. What was once confined to basic terminalling and storage has evolved into an integrated ecosystem delivering end-to-end supply chain solutions—spanning logistics planning and a host of value-added services—increasingly underpinned by data analytics and automation. Aegis Vopak Terminals Limited (AVTL) is an active participant in this transformation. We are committed to supporting Indias transition to a more sustainable future by providing safe, reliable liquid and gas storage and terminalling services across six key port locations, with a dedicated focus on minimizing environmental impact.

To capitalize on emerging market opportunities, we conceptualized Project GATI (Gateway Access to India). This initiative focuses on targeted investment in the storage infrastructure necessary to address the markets evolving demands and establishing a robust presence at key ports along the Indian coastline.

During the financial year (FY) 2025-26, AVTL extended its trajectory of robust operational growth. The combined market reputation, technical capabilities, and global lineage of our promoters—Aegis Logistics Limited and Royal Vopak N.V.—have significantly strengthened the Companys position in Indias third-party logistics (3PL) sector.

Leveraging these strengths, AVTL continued to pursue acquisitions and capacity augmentation initiatives in the liquid and Liquefied Petroleum Gas (LPG) storage segments. Key milestones this year included: Capacity Augmentation: Successful commissioning of additional LPG storage capacities at Pipavav and Mangalore, enhancing our operational footprint and service capabilities. Market Leadership: Recent expansions and acquisitions have established AVTL as one of Indias leading independent storage and terminalling service providers across major ports.

Management believes that the ongoing trend of consolidation within the logistics and storage infrastructure sector will continue in the medium term. Given its diversified asset base, key port locations, operational expertise, and strong promoter backing, AVTL is well-positioned to capitalize on these emerging growth opportunities.

This systematic consolidation—complemented by continuous brownfield and greenfield capacity additions across a diversified portfolio of liquids and gases—has unlocked significant operating leverage. The scale-up of assets in newly added ports like Pipavav, alongside extensive capacity rollouts at existing hubs including the Jawaharlal Nehru Port Authority (JNPA), Haldia, Kandla, and New Mangalore, culminated in excellent operational and financial performance during the year under review.

Driven by a sharp increase in LPG throughput volumes and the scaling up of newly commissioned liquid tankage capacity, the Group recorded strong growth in profitability: EBITDA Surge: Operational profit (EBITDA) increased sharply to Rs. 703.45 Crores for the financial year ended March 31, 2026, representing substantial growth from Rs. 578.73 Crores in the preceding financial year. Resilient Business Model: The structural financial health of the business remains highly resilient, sustained by a balanced, multi-commodity revenue model.

The Liquid Logistics vertical demonstrated strong structural resilience and growth during the period under review.

Financial Performance: Revenue grew to Rs. 440.47 Crores for the fiscal year ended March 31, 2026, up 27.77% from Rs. 344.73 Crores in the preceding fiscal year. This growth was driven by higher earnings from new liquid terminal capacities. Operating profit (EBITDA) for the division increased to Rs. 313.71 Crores, up from Rs. 236.32 Crores the previous year.

Capacity Utilization and

Commissioning Benefits: Performance was significantly bolstered by full-year operational realizations from major brownfield expansions commissioned at the end of the previous fiscal cycle (March 2025), specifically at New Mangalore (75,230 cbm) and JNPA (101,900 cbm). Improved utilization levels across the existing terminal network further supported this growth.

Future Growth Drivers: Future revenue expansion and margin improvements will be driven by higher asset utilization rates and an optimized, high-yield product mix across our core networks (JNPA, Haldia, Kandla, New Mangalore, and Kochi). Ongoing and planned capacity additions across these locations are expected to further improve volumetric realizations and per-cbm pricing.

The Gas Terminalling vertical delivered outstanding volume and margin expansion during FY 2025-26, solidifying the Companys leadership in clean energy logistics: Financial Performance: The division recorded revenues of Rs. 482.60 Crores, an 8.58% growth compared to Rs. 444.48 Crores in the previous fiscal year.

EBITDA Growth: In tandem with top-line growth, the divisions EBITDA surged 14.31% to Rs. 414.51 Crores, up from Rs. 362.64 Crores in the prior year.

Operational Infrastructure Integration: Momentum was driven by the successful integration of newly commissioned gas storage infrastructure. This includes the successful addition of the New Mangalore LPG infrastructure (82,000 MT) in June 2025 and the Pipavav static gas terminal assets (48,000 MT) in July 2025. Furthermore, the acquisition of Hindustan Aegis LPG Limited (adding 25,000 MT of storage at Haldia) extended the Companys presence along Indias eastern coast. Market Position and Sustainability Outlook: The steady uptick in Indias LPG consumption signals expanding, long-term national demand for transition fuels. With its state-of-the-art, integrated coastal logistics network, AVTL is uniquely positioned to capture incremental market share, enhance throughput volumes, and fulfill its core corporate vision of anchoring a sustainable energy ecosystem.

To cement its leadership in sustainable gas infrastructure, the Company is advancing plans to acquire Indias first independent Ammonia terminal at Pipavav Port, Gujarat. The facility features a static capacity of 36,000 MT (with acquisition rights assigned to Aegis Terminal Pipavav Limited from Aegis Logistics Limited as per the Framework Agreement dated June 19, 2025). This transaction is expected to close in the first half of FY 2026-27.

During the year under review, the Company successfully scaled up its LPG storage capacities through targeted asset integrations: New Mangalore Terminal Asset: On June 19, 2025, the Company completed the acquisition of an operational LPG terminal at the New Mangalore Port Authority (NMPA) with a designed storage capacity of 82,000 MT. This successfully boosted the Companys total static LPG capacity from 70,800 MT to 152,800 MT. Further infrastructure additions, including LPG Rail Loading Infrastructure and a downstream Bottling Plant at New Mangalore, are currently underway. Pipavav Terminal Asset: The Company finalized the acquisition of a 48,000 MT Cryogenic static storage LPG terminal at Pipavav Port on July 10, 2025, which was formally commissioned on July 03, 2025. Greenfield "J2 Project" at JNPA: Development of the landmark greenfield terminal ("J2 Project") at the Jawaharlal Nehru Port Authority (JNPA) is progressing on schedule. This capital-intensive project features an envisioned storage envelope of 77,286 MT of LPG, 318,100 cbm of liquid product storage, and a specialized LPG Bottling Plant with an annual processing capacity of 35,000 MT. The total project involves a capital outlay of Rs. 1,67,500 Lakhs (Rs. 1,675 Crores), with Phase-I liquid capacity scheduled for commissioning in Q1 FY27.

Inaugural Entry into the East Coast Market via HALPG: On January 06, 2026, the Company acquired a 75% equity stake in Hindustan Aegis LPG Limited (HALPG) from joint venture shareholders Aegis Gas (LPG) Private Limited and Vopak India B.V. Following this transaction, HALPG became a direct subsidiary of the Company. This acquisition adds a state-of-the-art 25,000 MT LPG storage capacity asset at Haldia, marking our debut into the high-demand East Coast logistics market. AVTL now operates a nationwide network of four coastal LPG terminals (Pipavav, Kandla, New Mangalore, and Haldia), offering a market-leading combined static capacity of 225,800 MT.

Kandla Port Expansion: Development of a 94,148 cbm liquid storage terminal is underway on a newly allotted 27,458 sq. meter plot at Kandla Port by CRL Terminal Private Limited, a wholly owned subsidiary.

With a strong market presence, targeted capacity expansions, improved liquid terminalling performance, and higher throughput in the Gas Division, the Company is well-positioned for accelerated growth.

Significant year-over-year changes (exceeding 25%) in the Companys consolidated financial ratios are summarized below: