JSW Infrastructure capacity expansion and logistics scale-up underpin long-term growth

Investment View and Valuation

ICICI Securities, in its July 22, 2026 result update on JSW Infrastructure Limited, maintains its Buy rating and Rs 400 target price, compared with a CMP of Rs 328. The target price is unchanged and is based on 23 times FY28E EV/EBITDA.

The broker expects JSW Infrastructure to remain on a strong long-term growth trajectory during FY26-FY30, supported by port-capacity additions, a strengthening logistics network and potential inorganic opportunities.

Q1FY27 Financial and Operational Performance

JSW Infrastructure reported a steady Q1FY27 operational performance despite disruption at Fujairah arising from the Middle East situation. Consolidated revenue increased 18% year-on-year to Rs 1,445 crore, while cargo volume grew 5.6% year-on-year. Port revenue rose 11% year-on-year to Rs 1,208 crore and logistics revenue increased 72% year-on-year to Rs 237 crore.

Consolidated EBITDA grew 16% year-on-year to Rs 674 crore, although the EBITDA margin contracted because of the absence of Fujairah Port contribution. Adjusted PAT declined 8.2% year-on-year and 15.6% quarter-on-quarter to Rs 358 crore.

Port Operations and Margins

Port cargo handled was 31 million tonnes in Q1FY27, up 5% year-on-year. Growth was led by Jaigarh, Dharamtar, Southwest and Ennore Bulk Terminal. Domestic volumes, excluding Fujairah, increased 11% year-on-year.

Port EBITDA rose 3% year-on-year to Rs 462 crore, while the margin declined 190 basis points year-on-year to 49.8%. The margin pressure was due to the Middle East situation and one-off crane-shifting costs of Rs 8-9 crore at Jaigarh.

Logistics Business Scale-up

The logistics business was a key positive during the quarter. Navkar EXIM volumes increased 2% year-on-year to 83,000 TEUs, while domestic volumes rose 40% to 385,000 tonnes. Logistics EBITDA was Rs 73 crore, with a 31% margin, and EBIT improved to Rs 51 crore from Rs 8 crore in Q1FY26.

Management has 42 rakes in operation, has ordered another 40 and aims to scale the fleet to 250 rakes over the next two to three years.

Management Guidance and Long-term Growth Outlook

Management retained its FY27E and FY28E revenue guidance at Rs 6,850 crore and Rs 10,800 crore, respectively. EBITDA guidance was also retained at Rs 3,000 crore for FY27E and Rs 5,000 crore for FY28E.

The company expects FY27E port volumes of 127 million tonnes, representing 4.4% year-on-year growth, assuming a revival in Fujairah volumes from H2FY27. Management expects consolidated revenue and EBITDA to grow at compound annual rates of 42% and 38%, respectively, during FY26-FY30E, with logistics expected to grow faster than ports.

Port Capacity Expansion and Capital Expenditure

JSW Infrastructure’s port capacity reached 186 million tonnes per annum after clearance for 12 million tonnes per annum at Southwest Port and expansion of Mangalore to 6 million tonnes per annum.

• The company has environmental clearance for the 33 million tonnes per annum Murbe Port and expects construction to start in late Q3FY27 or early Q4FY27.
• Approval for the 30 million tonnes per annum Keni Port is expected within three to four months.
• Jatadhar Port, the slurry pipeline, and expansions at Dharamtar and Jaigarh are expected by March 2027.
• The company remains on track to reach 300 million tonnes and 400 million tonnes of port capacity by FY28E and FY30E, respectively.
• It plans Rs 16,500 crore of capex across ports and logistics during FY27-FY28E.

Balance Sheet and Key Risk

A Rs 6,655 crore qualified institutional placement in Q1FY27 moved the company to a net cash position of Rs 2,769 crore.

The key near-term constraint identified in the report is the Middle East disruption and the resulting weakness in Fujairah volumes, which could weigh on volumes and margins.