Gateway Distriparks (GATEWAY) Q2 25/26 earnings summary

Executive summary

• Rail EBITDA per TEU for the quarter was INR 9,300, CFS EBITDA per TEU was INR 1,000, and Snowman Logistics is enhancing temperature-controlled logistics nationwide.

• Double-digit volume growth of 10%-15% is expected over the medium term, driven by trade deals and infrastructure improvements.

• Domestic rail services have commenced, targeting 1,000+ TEU per month in two years, with domestic expected to contribute 10%-15% of business in the future.

• Operates as a leading multimodal logistics provider with a network of 11 container terminals and five CFSs, serving major industrial zones across India.

• Snowman Logistics is realigning its transportation business to restore high single-digit PBT margins, focusing on fleet optimization and customer mix.

Financial highlights

• Q2 FY26 total income rose 45% year-over-year to ₹570.4 Cr; EBITDA up 22% to ₹123.4 Cr, but EBITDA margin declined to 21.6%.

• PAT for Q2 FY26 was ₹66.3 Cr, up 10% year-over-year, with PAT margin at 11.6%.

• Standalone revenue from operations for Q2 FY26: ₹40,262.27 lakhs, up from ₹38,370.52 lakhs in Q1 FY26 and ₹38,999.27 lakhs in Q2 FY25.

• Warehousing revenue for Snowman remained steady at INR 60 crore this quarter, with a significant dip in PBT margin from 12% to 3% due to lower utilization, new capacity, and increased diesel costs.

• Consolidation of Snowman Logistics led to one-time net losses in Q2 and H1 FY26.

Outlook and guidance

• CFS EBITDA per TEU is expected to recover to the INR 1,300-1,400 range in coming quarters.

• Asset-light, capex-free expansion in Western India through a 15-year exclusive partnership at MMLP Ankleshwar, with domestic services commenced and EXIM ICD to be operational by early FY27.

• Warehousing margins are expected to revert to 10%-12% as utilization improves and weather-related disruptions subside.

• Positive volume growth is anticipated from December onwards, supported by new trade agreements and infrastructure connectivity.

• Management believes Minimum Alternate Tax credit entitlement of ₹21,748.40 lakhs is fully recoverable.