Shares of JSW Infrastructure fell nearly 4% in Tuesday's trade after reporting subdued Q1 earnings, with the stock trading at ₹331, down 3.93% on the NSE around 12:36 pm. Despite the weak market reaction, brokerage Nomura retained its 'Buy' rating on the stock and raised its target price to ₹392 from ₹350, saying the company's first-quarter operating performance exceeded expectations. The brokerage noted that EBITDA of ₹6.7 billion (+16%/-12% y-y/q-q) was 4%/2% ahead of their/consensus estimates and could have been higher by ₹0.6-0.7 billion if Fujairah operations were not disrupted. Nomura also raised its FY27 and FY28 EBITDA estimates by 1%, citing a more favourable ports mix, while retaining its 'Buy' rating with the revised target price.
According to latest reports from Business Standard, JSW Infrastructure reported a 9.9% year-on-year decline in consolidated net profit to ₹346.63 crore for Q1 FY27, compared to ₹384.68 crore in the corresponding quarter last year. The profit decline was primarily attributed to lower other income and a higher effective tax rate during the quarter. The company's profit before tax (PBT) stood at ₹462.8 crore, down 2.1% due to lower other income as surplus funds were deployed towards ongoing growth capex. Despite the profit decline, the company demonstrated strong operational performance with revenue from operations rising 18.06% to ₹1,444.83 crore from ₹1,223.85 crore in Q1 FY26. EBITDA increased 16% to ₹674 crore, though the EBITDA margin narrowed to 49.8% from 51.7% in the previous year, mainly due to lower contribution from the Fujairah liquid storage terminal operations.
As reported by Business Standard, the company handled 31 million tonnes of cargo during the quarter, up 6% year-on-year, primarily driven by Jaigarh Port supported by higher anchor customer volumes and increasing third-party cargo throughput from newer cargo segments. The growth was further aided by robust performance at Dharamtar Port, South West Port and Ennore Bulk Terminal, along with contributions from interim operations at the Tuticorin Terminal. However, lower volumes at the Fujairah Liquid Terminal due to challenging operating environment in West Asia, which also impacted third-party cargo volumes, partially offset the gains. Port EBITDA stood at ₹601 crore, up 7.1%, with the company noting that had Fujairah operations not been impacted, it would have generated incremental EBITDA of around ₹65-70 crore. Operational revenue from ports business increased 11% year-on-year to ₹1,208 crore, driven by higher cargo volumes and favourable product mix.
According to Business Standard, during the quarter, JSW Infrastructure expanded cargo handling capacity at South West Port, Goa and the Mangalore Container Terminal. The company commenced interim operations at the Kolkata Container Terminal, began commercial operations at the Arakkonam GCT, and secured environmental clearance and rail connectivity approval for the Murbe Port project in Maharashtra. The company reiterated its plan to increase cargo handling capacity to 400 million tonnes per annum by FY30 or earlier, from the current 186 MTPA, backed by a ₹30,000-crore capital expenditure plan for ports. It has also earmarked ₹9,000 crore for expanding its logistics business. Latest reports indicate capacity expansion plan targets 300M tons by FY2028 and 400M tons by FY2030, with capex of ₹16,500 crores planned over two years.
While announcing the Q1 numbers, JSW Infrastructure completed its Qualified Institutional Placement (QIP), raising ₹6,555 crore on June 26, 2026, through the issuance of 23 crore equity shares at an issue price of ₹285 per share. As of June 2026, the company reported gross debt of ₹7,094 crore, cash and bank balances of ₹9,863 crore, resulting in a net cash position of ₹2,769 crore. Looking ahead, management has guided for consolidated operating revenue of ₹6,850 crore and operating EBITDA of ₹3,000 crore in FY27. Operating EBITDA is expected to grow around 15% in FY27 over FY26 and nearly double by FY28. The company also reiterated its target of consolidated operating revenue of ₹6,850 crore and operating EBITDA of ₹3,000 crore for FY2027, with management reaffirming FY2028 target of ₹5,000 crore EBITDA despite Fujairah disruptions.
