Aegis Logistics Q4 FY26: Record Profit on the Traction of Capacity Utilisation

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1. At a Glance

Aegis Logistics closed FY26 with a PAT of ₹898 Cr on revenue of ₹8,333 Cr—the highest annual profit in the company’s operating history. The quarter itself (Q4 FY26) generated ₹410 Cr net profit on ₹2,594 Cr sales, a 45.7% jump in profit versus the prior year’s Q4.

Yet the story isn’t simple. That surge came partly from one-time tailwinds: a ₹370 Cr spike in “Other Expenses” in the full-year data, which suppressed FY25 numbers by comparison. Strip that out, and the operating power becomes clearer: EBITDA and operating margins are widening, terminal utilisation is climbing, and the capex program (which burned ₹2,533 Cr in cash outflows in FY26) is starting to yield throughput gains.

The equity sits at ₹35.1 Cr shares (unchanged). The market pays ₹799 per share as of June 10, 2026—a 31.2x multiple on trailing earnings. That places the stock above both its own 5-year average (31.5x, oddly) and well above the peer median for logistics (if any peers exist in this niche). Debt shrank from ₹4,606 Cr in FY25 to ₹4,150 Cr in FY26, signalling a ₹456 Cr paydown post-IPO proceeds from the Vopak JV. Cash stands at ₹4,195 Cr—enough to cover roughly a year of capex at current run-rate.

The company is mid-stride: halfway through the biggest capex cycle in its history. Ammonia terminals are commissioned, LPG pipelines are live in weeks, and liquids capacity is doubling. Whether the market’s 31x bet on this execution holds depends entirely on whether new assets fill up on schedule.

Is a company mid-capex cycle, debt-neutral, and earning record profits actually cheaper or more expensive than it looks?

2. Introduction

Aegis Logistics was born in 1956 as a chemicals handler and has spent the last decade pivoting into India’s dominant LPG and liquid bulk logistics player. The Chandaria family owns 58.1% of the equity; Itochu (Japan) and Royal Vopak (Netherlands) are deep operational partners, not just investors.

The company’s footprint spans six major ports: Mumbai, Kandla, Pipavav, Mangalore, Haldia, and Kochi. It also holds a strategic toehold at JNPT (the new Mumbai container terminal). In total, LPG static capacity sits at 119,000 MT across these nodes, with liquids terminals holding ~1.7 million KL of storage. The retail LPG network includes 142 auto-gas stations and ~290 distributors in 140 cities.

The business split is stark: LPG accounts for ~90% of revenue but only ~40% of EBITDA (due to thin margins on sourcing). Liquids, at ~10% of revenue, drives ~60% of operating profit—the gold mine of the two.

Over the past five years, revenue CAGR was 16.7%, but profit CAGR hit 32.1%. Last year the company sat in consolidation mode (FY25 revenue actually fell 4% to ₹6,764 Cr), but FY26 bounced back sharply: revenue up 23% to ₹8,333 Cr and net profit up 36% to ₹898 Cr.

The board includes four independent directors and is chaired by Raj Chandaria (MD), who has overseen the terminal build-out for decades. Auditors are Deloitte and Bansal; no pledges, no related-party red flags.

3. Business Model: WTF Do They Even Do?

Picture a giant tank at the edge of a port. Oil companies, chemical traders, and food conglomerates show up with a tanker. Aegis charges them a monthly fee to park the liquid inside—whether it’s crude, vegetable oil, or caustic soda.

That’s the Liquids business. High margin, sticky, capital-intensive.

Now picture 9.6 million MT of LPG flowing through Aegis’ network annually: sourced from the Middle East or the US, piped into India, stored in cryogenic tanks, distributed via trucks and trains to refineries and industrial customers, bottled for retail, and finally trucked to 290+ distributors across 15 states.

The LPG supply chain prints money on scale but near-zero margin on sourcing. The real value sits upstream (terminalling fees) and downstream (distribution mark-up). Aegis captures all three, but the sourcing leg is a volume play with razor-thin spreads—it subsidises the network and locks in customer relationships.

The company also runs 142 autogas stations (filling car tanks with LPG), a smaller, higher-margin outlet.

Capacity and geography matter enormously. Pipavav in Gujarat handles VLGCs (very large gas carriers)—the new standard for bulk LPG imports. Mumbai is deep with customers but space-constrained. Kandla and Kochi have just expanded or are expanding. Haldia (acquired 75% of a competitor’s LPG terminal in Jan 2026 for ₹1,032 Cr) cemented the East Coast play. And JNPT, the new second terminal in Mumbai, is under construction.

Customers are blue-chip: Shell, Reliance, HPCL, BPCL, ONGC—all locked in via pipeline contracts and long-term agreements. The Jamnagar–Loni LPG pipeline (operational) and the Kandla–Gorakhpur pipeline (live by June 2026) are volume multipliers for the LPG terminal network.

In short: Aegis owns the plumbing. It sources, stores, moves, and distributes. Margins are thin on sourcing but fat on storage and distribution. Customers are stuck—pipelines cost ₹1,000s of crores to build, so switching ports is not a two-minute decision.

4. Financials Overview

Figures are consolidated, in ₹ crore.

(Note: EPS calculated as Net Profit / 35.1 Cr shares; Q4 FY26 = full-year EPS per the Q4 rule.)

Quarterly Q4 FY26 (ended March 31, 2026) delivered ₹2,594 Cr revenue, ₹410 Cr net profit, and ₹624 Cr operating profit. The operating margin (OPM) in Q4 hit 24%—a dramatic spike driven partly by a ₹370 Cr jump in “Other Expenses” in FY25 that did not repeat in FY26. Strip that one-timer out, and the underlying OPM normalizes to ~17%, in line with FY26’s full-year 17.4% OPM.

The concall (Feb 2026) framed 9M FY26 results (ending Dec 31, 2025) as “record performance”: 9M revenue ₹5,739 Cr (+13% YoY), normalized EBITDA ₹929 Cr (+26% YoY), PAT ₹652 Cr (+39% YoY). Management credited operating leverage and “strong product mix” in the Liquids segment, where terminal realizations expanded on higher-complexity petroleum products.

Interest coverage sits at 10.8x (earnings yield 5.63%), and the current ratio is 1.71—comfortable liquidity without bloat.

5. Market Expectations & Historical Multiples

This section describes how the market is currently pricing the company and how that compares with its own history and peer group. It is descriptive, not predictive.

The market currently pays 31.2x earnings here, versus a 5-year average of 31.5x—in other words, the stock is trading bang in the middle of its historical band on a multiple basis. However, earnings have nearly doubled in the past five years (profit CAGR 32.1%), so the absolute rupee price of that 31x multiple has climbed steadily.

The apparent flatness of the multiple masks a company that grew profits 32% CAGR over five years while the share price went up 16% CAGR—a sign the market was systematically de-rating Aegis even as it grew. That reversal (profits expanding faster than the multiple) suggests the market was pricing in execution risk on the capex program, a bet that newer terminals would struggle to fill.

ROE of 16.8% exceeds the cost of equity (implied ~10–12% given the ₹799 price and 5.63% yield), and ROCE of 13.6% is below the cost of capital (again, ~10–12%), implying the company is not yet earning its cost of capital on new capex. Once the capex matures and utilisation ramps, ROCE should move toward 16–18% (management’s long-term “thumb