Gateway Distriparks (GATEWAY) Q2 25/26 earnings summary

Executive summary

• Rail EBITDA per TEU for the quarter was INR 9,300, while CFS EBITDA per TEU was INR 1,000, with CFS margins impacted by one-off legal and maintenance costs and a dip in exports due to U.S. tariffs.

• 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, now a subsidiary, enhances temperature-controlled logistics capabilities nationwide.

• Approved unaudited standalone and consolidated financial results for the quarter and six months ended September 30, 2025, with limited review by statutory auditors.

• 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 long term.

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%.

• 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.

• Consolidated revenue from operations for Q2 FY26: ₹56,732.22 lakhs, up from ₹55,042.96 lakhs in Q1 FY26 and ₹38,999.27 lakhs in Q2 FY25.

• Warehousing revenue for Snowman remained steady at INR 60 crore for the quarter, but PBT margin dropped from 12% to 3% due to lower utilization, new capacity, seafood-related stress, and increased diesel costs from power cuts.

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

Outlook and guidance

• Expecting 10%-15% volume growth over the next two to three years, driven by trade deals, DFC connectivity, and a shift from road to rail.

• 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.

• CFS EBITDA per TEU is targeted to return to the INR 1,300-1,400 range as one-offs subside.

• Warehousing margins are expected to revert to 10%-12% as utilization improves and new facilities ramp up.

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