Multimodal logistics firm Gateway Distriparks Ltd reported a significant decline in profitability for Q3 FY26, with consolidated net profit falling 85.24% year-on-year to ₹6,716.59 lakhs compared to ₹39,076.72 lakhs in the same quarter last year. According to latest reports, this dramatic decline was primarily attributed to the absence of a ₹39,076.72 lakhs fair valuation gain on Snowman Logistics that was recognized in Q3 FY25, along with an exceptional charge of ₹276.76 lakhs related to new Labour Code implementation. The company also reported consolidated profit before tax at ₹7,203.24 lakhs and consolidated profit after tax at ₹6,716.59 lakhs for the quarter. On a standalone basis, the company demonstrated strong operational health with revenue from operations up 6.3% YoY to ₹40,995.23 lakhs and net profit growing 25.27% YoY to ₹7,116.63 lakhs, with basic EPS rising to ₹1.42 from ₹1.14.
Despite the profit decline, Gateway Distriparks demonstrated strong revenue growth with consolidated revenue increasing 39.23% year-on-year to ₹56,041.46 lakhs compared to ₹402.5 crore in Q3 FY25, primarily driven by the consolidation of Snowman Logistics which became a subsidiary effective December 24, 2024. As reported by latest data, standalone revenue grew 6.3% YoY to ₹40,995.23 lakhs with standalone PBT surging 21.1% YoY to ₹7,674.83 lakhs and standalone net profit up 25.27% YoY to ₹7,116.63 lakhs. The company's nine-month standalone revenue grew 6.90% to ₹1,19,225.18 lakhs with nine-month net profit up 17.25% to ₹20,343.14 lakhs. However, consolidated EBITDA margin compressed to 21.8% from 24% in the previous year, reflecting the impact of the Snowman consolidation.
Gateway Distriparks announced a comprehensive dividend package for FY26, declaring a second interim dividend of ₹0.75 per share (7.5%) and a special interim dividend of ₹1.25 per share (12.5%), aggregating to ₹2.00 per share for FY2025-26. The special interim dividend is described as a one-time, non-recurring payout declared in recognition of the company achieving a net debt-free position for the first time since inception and marking 30 years since the acquisition of land for its first facility, the Nhava Sheva CFS. The record date for the dividend is February 12, 2026. The company's shares ended at ₹61.18, up by ₹1.06 or 1.76% on the BSE following the dividend announcement.
A significant red flag emerged with auditors S.R. Batliboi & Co. LLP issuing qualified conclusions on both standalone and consolidated results due to ongoing regulatory and tax disputes. The qualifications stem from challenges to Service Exports from India Scheme (SEIS) benefits and a case under the Prohibition of Benami Property Transactions Act, 1988, related to advances for land acquisition. While management, citing legal opinions, believes no provisions are currently required and foresees no material impact, the auditor remains unable to comment on potential future requirements. Additionally, income-tax demands under litigation and GST demands for Snowman Logistics add to the list of potential financial uncertainties. Beyond these issues, the company is involved in an arbitration proceeding with CONCOR and a dispute with PCW regarding a bank guarantee, where an arbitration award was received in the company's favour. The most prominent concern is the ongoing Benami property proceedings under the Prohibition of Benami Property Transactions Act, 1988, related to land acquisition in Jaipur, where the Adjudicating Authority has confirmed a provisional attachment of these land parcels.
Chairman & Managing Director Prem Kishan Dass Gupta expressed optimism about the company's future prospects, noting that Q3 typically represents a weaker quarter but numbers remained strong. As reported by CNBC TV18, Gupta highlighted the positive impact of the Free Trade Agreement signed with the EU and trade deals with the USA, stating these agreements will lead to a significant boost in global trade for India when ratified. The company has also expanded its rail services from MMLP New Ankleshwar, which started in October 2025, and is purchasing 3 new high-capacity rakes while swapping 3 older rakes on lease for higher-capacity alternatives, targeting 37 rakes by the end of Q1 next year. Progress on a new Inland Container Depot (ICD) project in Jaipur is also noted, with the company's results filing not providing specific forward-looking financial guidance. The company is actively pursuing strategic initiatives, including exploring alternative uses for its Krishnapatnam CFS assets and a reassessment of the useful life of certain PPE assets that has led to a reduction in depreciation expenses.
