Gateway Distriparks (GATEWAY) Q4 25/26 earnings summary

Executive summary

• Volumes remain subdued due to the ongoing West Asia conflict, impacting both imports and exports, with no clear recovery timeline.

• Snowman Logistics was acquired as a subsidiary from December 2024, consolidating its financials and expanding cold-chain logistics.

• Major capex projects include a new ICD near Indore (25 acres, 120,000 TEU, Rs. 150 crore), with domestic operations started at Ankleshwar MMLP.

• Promoter shareholding increased to 33.92% in Q4 FY26.

• The company continues to seek new locations for long-term asset creation, regardless of short-term demand trends.

Financial highlights

• FY26 total income rose 30% YoY to Rs. 2,229 crore (₹222,944.03 lakhs), with EBITDA up 19% to Rs. 497 crore.

• FY26 PAT (excluding exceptional items) was Rs. 259 crore, with a PAT margin of 11.6%.

• Gross margin remained largely intact despite muted growth and CFS segment impact.

• Employee costs rose 12%-13% YoY due to increased headcount, retention bonuses, and expansion preparation.

• Double-stacking accounted for 40% of cargo for the full year, with Q4 at 42%.

Outlook and guidance

• Targeting 15% growth in Rail and Snowman segments, and 5% in CFS, contingent on fewer disruptions.

• Orders placed to expand train fleet to 37 by Q1 FY26, including 9 high-capacity trains.

• Snowman’s INR 1,000 crore revenue target is deferred to FY 2029, with a 15% EBITDA margin goal.

• CapEx guidance includes INR 150 crore for Indore, INR 70 crore for Jaipur, and investments in EVs, rakes, and warehouses.

• The company plans to opt for a lower tax regime under Section 115BAA from FY27.