Allcargo Terminals Ltd Q2 FY26 – From CFS to Chaos: When Freight Meets Finance and GST Notices Start Flying
1. At a Glance
Welcome to the land of containers, customs, and chaos — Allcargo Terminals Ltd (ATL), the big boss of container freight stations (CFS) in India, just dropped its Q2 FY26 numbers. The company, part of the Allcargo Group, reported a quarterly revenue of ₹207 crore, a PAT of ₹11.3 crore, and an EPS of ₹0.45 — respectable for a logistics firm that deals with metal boxes all day. But the real spice isn’t in the numbers — it’s in the drama.
ATL is dealing with a GST demand of ₹25.29 crore, tax search notices, and is simultaneously planning to raise ₹80 crore via a rights issue, right after issuing 1.32 crore convertible warrants at ₹29 apiece to promoters. Add to that a newly approved 7.6% stake in Haryana Orbital Rail Corporation Ltd (HORCL) worth ₹115 crore — financed by a ₹140 crore term loan — and you’ve got yourself the perfect Bollywood crossover: Freight Wala meets Finance Wala.
With a market cap of ₹847 crore, debt of ₹644 crore, and ROE of 13%, the company isn’t shy of risk. It operates 7 container freight stations and 1 ICD (Dadri) across India, handling a massive 8 lakh TEU capacity at 85% utilization. But even with such scale, one can’t help asking — why is the “largest” CFS operator struggling to pay dividends?
Hold that thought — let’s unpack this container.
2. Introduction
Incorporated in 2019, Allcargo Terminals is still a baby in the logistics playground, but one that inherited all the expensive toys from its parent — Allcargo Logistics Ltd. Think of it as the younger sibling who got the warehouses and cranes in the family property division.
ATL is now the largest CFS operator in India, and its shiny toys are parked at all major ports — JNPT, Mundra, Kolkata, Chennai, and Dadri. Together, they manage everything from hazardous cargo to reefer containers (that’s refrigerated ones, not the other “reefer” you’re thinking of).
But behind the neatly stacked containers lies a complex web of debt, warrants, rights issues, and loans that finance more loans. With ₹768 crore in sales and ₹31.8 crore in annual PAT (FY25), the company’s financials look tidy — until you notice the fine print: profit growth -28.3%, current ratio 0.92, and contingent liabilities of ₹687 crore. That’s not a typo — ₹687 crore.
So here we are, staring at a logistics firm that runs India’s cargo lifelines but can’t seem to move its own stock price out of the ₹30s range.
3. Business Model – WTF Do They Even Do?
Let’s break it down in plain English (and a little sarcasm):
Allcargo Terminals runs Container Freight Stations (CFS) and Inland Container Depots (ICD) — basically giant parking lots for shipping containers where goods are stuffed, unstuffed, cleared, stored, and sometimes lost (just kidding… mostly).
They handle import/export logistics for India’s biggest ports and offer end-to-end services like:
Containerized cargo handling
Hazardous cargo management
Reefer monitoring
Break bulk cargo
Bonded & non-bonded warehousing
Direct port delivery (DPD)
And because we live in 2025, they also have an app — myCFS 2.0 — which digitizes two-thirds of EXIM processes. That’s right, now your cargo delays can be tracked in real time.
Their subsidiary SML holds a monopoly in “Cluster 1” near JNPT, giving them the locational advantage every trucker dreams of.
In short: ATL moves containers, clears customs, collects fees, and occasionally invests in rail projects like HORCL, linking its future ICD in Haryana to the Dedicated Freight Corridor (DFC).
Translation: They make money every time someone sneezes near a port.
4. Financials Overview
Source table
Metric (₹ Cr)
Latest Qtr (Sep’25)
YoY Qtr (Sep’24)
Prev Qtr (Jun’25)
YoY %
QoQ %
Revenue
207
195
187
6.2%
10.7%
EBITDA
40
32
35
25.0%
14.3%
PAT
11.3
11
9
2.7%
25.5%
EPS (₹)
0.45
0.48
0.36
-6.3%
25.0%
Annualised EPS: ₹1.8 → P/E = 18.6x at CMP ₹33.6.
The company’s revenue keeps chugging like a Delhi freight train, but profit margins seem stuck in customs. Still, a 19% OPM for a port services company is solid — unless you remember that interest cost has jumped to ₹15 crore, eating into bottom line faster than diesel inflation.
