JSW Infrastructure Q2 FY27 Earnings Call: EBITDA Guidance Trimmed To Rs. 2,950-3,000 Cr, Rs. 16,500 Cr Capex Intact (JSWINFRA)

JSW Infrastructure Ltd held its Q2 FY27 earnings call on October 27, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Solid Top Line, But PBT/PAT Decline on FX and Tax

• Q2 FY 2026-2027 consolidated revenue of Rs.1,481 crore (+17% YoY) — operating EBITDA of Rs.674 crore (+11% YoY); depreciation rose to Rs.175 crore (vs Rs.149 crore) and finance cost to Rs.108 crore (vs Rs.99 crore) in the quarter ended September 2025.
• PBT fell to Rs.431 crore from Rs.463 crore YoY — driven by unrealized FX losses (rupee depreciation, upward yield-curve shift) and higher depreciation from port project commissioning and logistics scale-up; PAT of Rs.328 crore vs Rs.369 crore, additionally hit by a higher effective tax rate due to absence of tax-exempt Fujairah Oil Terminal earnings.
• H1 FY 2026-2027 operating revenue of Rs.2,926 crore (+18% YoY) — operating EBITDA Rs.1,348 crore (+13% YoY), net profit Rs.686 crore.
• Port EBITDA margin compressed to 49.4% from 53.1% YoY — port revenue up 9% YoY at Rs.1,202 crore; CFO Nagarajan attributed margin pressure to volume mix, with growth from terminals carrying 30-35% EBITDA margins and a dip in Jaigad volumes.
• Logistics (Navkar) EBITDA tripled to Rs.81 crore from Rs.25 crore YoY — margin expanded to 29% from 15% on growing rail logistics contribution; domestic cargo +16% YoY at 4,59,000 MT, EXIM +12% YoY at 88,000 TEUs.
• Cash of Rs.1,693 crore as of September 2026 — management described this as one of the strongest balance sheets in the sector; the QoQ rise in other income was primarily interest on QIP proceeds (CFO Nagarajan).

India Outpaces Industry; Paradip Iron Ore Disruption Weighs

• Q2 FY 2026-2027 cargo of 29.4 million tons vs 28.9 million tons (+2% YoY) — India operations grew 8% YoY, muted by nil Fujairah Liquid Terminal contribution and lower volumes at Jaigad and Paradip iron ore terminal; H1 India operations grew 10% YoY vs industry-wide growth of 5%.
• Paradip iron ore volumes disrupted August–September — after a ship (not from JSW's terminal) sank ~240 nautical miles off the Paradip coast on August 22, regulators withheld exporter clearances during the rainy season due to TML norms; stock built to close to 8 lakh tons by end of September, forcing the company to refuse traffic.
• Third-party cargo at 45% of Q2 volumes — Indian third-party volumes grew 13% YoY; overall third-party growth limited to 1% due to nil Fujairah contribution (H1 India third-party: 28.1 million tonnes, +11% YoY).
• Domestic volumes grew close to 8-9% in H1 FY 2026-2027 — Paradip Coal and Nor Bulk performed exceptionally well and Kolkata operations restarted; management expects H2 FY 2026-2027 domestic cargo growth of 8-10% YoY, with H2 typically carrying a higher proportion of volumes.
• Jaigad decline is a sourcing-mix shift, per CFO Nagarajan — Dolvi plant recently sourced via Dharamtar and Mumbai anchorage; over the next six months the combination shifts to Jaigad and Dharamtar, with the two ports together expected to handle around 46 million tonnes in FY27.
• ~30-day Tuticorin shutdown planned in H2 FY 2026-2027 — for berth commissioning; management remains confident of sustaining the growth guidance despite it.

A Rs.16 Cr Quarterly Drag With a "Wait and Watch" Near Term

• Fujairah EBITDA was negative ~Rs.16 crore in Q2 FY 2026-2027 — fixed overheads continue to be incurred, partly offset by ~Rs.4 crore of O&M income from the Dibba Port and Fujairah Port O&M contracts; H1 FY 2026-2027 international EBITDA loss close to Rs.16 crore.
• FY26 Fujairah EBITDA was Rs.250 crore — with ~11 months of full operations before the downturn commenced from March 2026; H1 FY26 Fujairah EBITDA stood at Rs.134 crore (CFO Nagarajan, responding to an analyst's ~Rs.70 crore/quarter assumption for Q2 FY26).
• 8 tanks under commissioning; operations targeted for the first week of November 2026 (Q3 FY 2026-2027) — FOIS (the local authority) asked the company to begin testing, with final commissioning permissions expected around October 29, 2026; ramp-up depends on November-December demand, described as "very fluid" — long-term prospects "extremely bullish," immediate prospects "wait and watch."
• Insurance claims still being assessed — forensic study completed; insurers are awaiting the state's declaration on whether the incident constitutes war; management's first priority is to secure the capex for reconstructing the storage tank rather than pursue a loss-of-profit claim.
• Key risk: storage-tank demand in the area has come down substantially — ships currently not calling there due to what management referred to as "the problem"; CEO Ritesh Roy said the company is now totally focused on India operations but remains "very bullish" long term, citing cargo shifts into Fujairah as it is outside the Straits of Hormuz and pipelines from the Abu Dhabi area being connected.

Rake Fleet Scaling to 110; Guidance Reframed on Accounting

• Rake fleet grew from 42 at the start of Q2 FY 2026-2027 to 78 by quarter-end — of the 36 added, only 8 were deployed in September 2026; 72 operational since October 2026, the remaining 6 expected operationalized in November–December 2026, with a further 32 rakes over H2 FY 2026-2027 taking the fleet to 110 by March 2027.
• Logistics EBITDA was only Rs.153 crore in H1 FY 2026-2027 — new rakes delivered only in September; management is confident of slightly above Rs.400 crore logistics EBITDA in FY27, with fulsome revenue in Q3-Q4 FY 2026-2027 and a planned fleet ramp from 78 to 110 rakes over H2 FY 2026-2027.
• FY27 logistics EBITDA margin guidance revised to 28% from 24% — accounting-driven: haulage charges will now be netted off, lifting the expected rail/logistics EBITDA margin to 88-90% for FY 2026-2027 while full-year EBITDA is kept constant and turnover guidance is cut; the rail rate business margin is ~90% since revenue is recognized net of haulage charges (CFO Nagarajan).
• FY28 margin guidance unchanged — CFO Nagarajan said a call on FY28 numbers will be taken at the Q3 or Q4 FY 2026-2027 results; the CEO noted FY28 will include container rakes with a different margin profile.
• Rake target is fluid — management clarified the initial goal is ~267-270 rakes (157 container + 110 LSFTO), which it expects to move substantially higher over the next 2-3 years as more terminals and rail linkages come online; an analyst framed prior guidance as ~250 rakes by March 2030.
• Logistics network build-out since October 2024 — from 3 to 8 locations, rakes ~tenfold from 8 to 78, domestic container fleet from ~2,400 to nearly 5,000; Q2 additions included acquisition of NCR Rail Infrastructure Limited, an ICD approval at Kurtini (Bellary), and a Gati Shakti cargo terminal at Kulipalayam (Tamil Nadu).

Kolkata Concession, Jatadhar Ramp, and a 300 MTPA FY28 Roadmap

• 30-year concession signed for the 13 MTPA outer container terminal at NSD Docks, Kolkata — once operational, total Kolkata container handling capacity rises to ~1.4 million TEUs (period unspecified); interim operations commenced at the 6.3 MTPA Kolkata container terminal awarded in July 2025, with further cargo growth expected in H2 FY 2026-2027.
• Management reaffirmed a roadmap to expand capacity to 300 million tons per annum by FY28 — from current 186 MTPA, and further to 400 MTPA by FY30; the long-term vision is unchanged.
• Jatadhar (Odisha): berth ready to handle cargo by March 2027 (Q4 FY 2026-2027) — mechanical and berth works including dredging up to Panamax capability targeted for completion by March 2027; capesize facilities expected in Q3 FY 2027-2028; EC clearance already secured for ~54 MTPA with scope to scale to 100-120 MTPA (period unspecified).
• Jatadhar demand underpinned by JSW Steel's newly announced expansions (Bhushan Steel, Utkal Steel) — waterfront permission covers ~3.5 km with ~690 meters developed to handle 30 MTPA in phase 1; the common rail corridor to Badabandh station is expected to take at least another two years including land acquisition (i.e., by ~FY 2028-2029).
• Oman and Murbe construction expected to commence in Q4 FY 2026-2027 — Oman tenders floated with bids expected in mid-November 2026; Murbe land acquisition underway and tendering completed; the company infused Rs.40 crores of equity into the Oman project in Q2 FY 2026-2027 (allotment awaited).
• Keni delayed on environment clearance — KCZMA has recommended the proposal to the central government (MoEFCC) for approval; management expects another 3-4 months to secure the EC (around Q4 FY 2026-2027), with construction to follow thereafter.
• Upsides beyond the Rs.30,000 crore port capex pipeline (period unspecified) — Jatadhar growing beyond 30 MTPA, a possible Oman phase 2, the recently won Kolkata phase 2 container terminal (not covered by the Rs.30,000 crore), and ongoing bids for container terminals in southern India (contingent on winning); management is looking at upcoming major-port privatization bids in southern India for containers and liquids, with bulk participation selective.

FY27 EBITDA Trimmed to Rs.2,950-3,000 Cr; Rs.16,500 Cr Capex Intact

• FY27 consolidated EBITDA guidance refined to Rs.2,950-3,000 crore — vs the original Rs.3,000 crore guidance articulated in January 2026; ports may end at Rs.2,550-2,560 crore (vs Rs.2,600 crore planned earlier) and logistics slightly above Rs.400 crore in FY27.
• Management committed to meeting FY 2026-2027 guidance despite Fujairah — CEO Ritesh Roy said the company is "approximately nearing those numbers," while cautioning the Fujairah situation remains "still fluid."
• Capex guidance intact at Rs.16,500 crore covering FY27-FY28 — Rs.2,100 crore spent in FY 2026-2027 to date (cumulative ~Rs.8,250 crore up to September 2026, including Rs.1,500 crore in Q2); a further Rs.6,000 crore of orders placed, taking total committed expenditure to nearly Rs.14,250 crores till September 2026; Rs.5,000-5,500 crore of purchase orders outstanding, ~Rs.950-1,000 crore of capex creditors, and Rs.5,000-6,000 crores of spend expected in FY 2026-2027.
• Other income to stay elevated until capex drawdown — the Rs.6,400 crores realized (net of all charges) from the FY 2026-2027 fundraise is invested in mutual funds and fixed deposits, with drawdowns only as capex is spent; other income will not normalize from Q3 FY 2026-2027 (CFO).
• H2 FY 2026-2027 finance cost guided broadly in line with H1 — incremental borrowings are capex-linked with interest capitalized; a slight increase in H2 interest cost is expected from ROU expense on newly taken finance leases booked within finance expense.
• Slurry pipeline ~88% complete and on schedule for commissioning by March 2027 (Q4 FY27) — 257 km of pipeline lowering completed plus 10 km of HDD in progress; Jaigarh LPG marine/berth-side operations to start by March 2027, with tankage completion assessed around Q3 FY 2027-2028 after a government order changed the special planning authority (approvals now in place).
• Management flagged global headwinds and geopolitical uncertainties — including the Fujairah disruption, citing the company's resilience, diversified ports-logistics platform, and disciplined execution as enabling delivery of the long-term strategy; mechanization timelines: Dharamtar by Q4 FY27, Jaigarh by Q1 FY28.