Strong FY25 performance propels JSWINFRA toward port and logistics growth milestones
In FY25, JSWINFRA handled 117MMT of cargo (up 9% YoY), supported by higher volumes at terminals in Mangalore, Ennore, and Paradip, along with the commencement of interim operations at JNPA and Tuticorin. Third-party cargo volumes surged 34% YoY to 57MMT, increasing their share in the overall cargo mix to 49% from 40% in FY24. In FY25, the company strategically entered the logistics sector through the acquisition of a 70.37% stake in Navkar Corporation Ltd (NAVKAR) and the Gati Shakti Multi-Modal Cargo Terminal at Arakkonam, laying the groundwork for a pan-India logistics network to deliver integrated, end-to-end supply chain solutions.
Revenue grew 19% YoY to INR 44.8b, EBITDA rose 15% to INR 22.6b, and APAT increased 22% to INR 14.5b. The company maintained strong financial health, with a net debt-to-EBITDA ratio of ~1x and a net debt-to-equity ratio of 0.2x.
JSWINFRA ended FY25 with strong growth in cargo and profitability and is advancing toward its goal of 400 MTPA port capacity by FY30. Driven by the NAVKAR acquisition, its logistics arm is targeting 50% revenue growth in FY26 and aims to reach INR80b revenue by FY30. Backed by a solid balance sheet, JSWINFRA is well-positioned to achieve 13-15% volume CAGR over the next few years. We estimate a volume/revenue/EBITDA/APAT CAGR of 13%/22%/23%/18% over FY25-27. Reiterate BUY with a TP of INR370 (premised on 23x FY27 EV/EBITDA).
Valuation and view
JSWINFRA ended FY25 on a strong note, delivering robust growth in cargo volumes, revenue, and profitability, while making steady progress toward its long-term goal of achieving 400 MTPA port capacity by FY30. The recent acquisition of NAVKAR has significantly strengthened its logistics segment, which is targeting INR80b in revenue by FY30. With a strong balance sheet and a favorable macro environment, JSWINFRA is well-positioned to benefit from India’s infrastructure push and increasing third-party cargo demand, despite global headwinds.
We expect JSWINFRA to strengthen its market dominance, leading to a 13% volume CAGR over FY25-27. This, along with a sharp rise in logistics revenues, is expected to drive a 22% CAGR in revenue and a 23% CAGR in EBITDA over the same period. We reiterate our BUY rating with a TP of INR370 (based on 23x FY27 EV/EBITDA).
