Aegis Vopak Terminals Q1 Results: Revenue rises 6%, profit at ₹47 crore

Aegis Vopak Terminals Ltd. announced its financial results for the quarter ended June 30. Revenue stood at ₹164 crore, registering a growth of 6.48% year-on-year (YoY) compared to ₹154.03 crore in the same quarter last year. On a sequential basis, revenue rose 4.53% quarter-on-quarter (QoQ).

Net profit for the quarter came in at ₹47.72 crore, up 85.12% YoY from ₹25.78 crore. On a QoQ basis, profit increased by 15.43%.

Other income surged to ₹9.33 crore, compared to ₹2.34 crore in the year-ago period. However, it declined from ₹14.28 crore in the previous quarter.

Separately, the company has proposed a capital expenditure of ₹1,675 crore for the development of a Greenfield terminal project (referred to as the J2 Project) at Jawaharlal Nehru Port Authority (JNPA).

The proposed facility will have a storage capacity of 77,286 metric tonnes (MT) for liquefied petroleum gas (LPG) and 318,100 cubic metres (cbm) for liquid products. Additionally, the project includes setting up an LPG bottling plant with an annual capacity of 35,000 MT.

A day earlier, brokerage firm Jefferies initiated coverage on Aegis Vopak Terminals with a 'Hold' rating and a price target of ₹270.

The brokerage described Aegis Vopak as a structural play on India’s growing consumption of Liquefied Petroleum Gas (LPG), which is increasingly being met through imports. The company operates a nationwide network of storage terminals for LPG and other liquid bulk products.

Jefferies expects the company to deliver a 28% compound annual growth rate (CAGR) in earnings before interest, taxes, depreciation, and amortisation (EBITDA) between financial year 2025 and 2030. This growth is likely to be driven by a mix of organic and inorganic capacity additions, as well as better utilisation of assets aided by evacuation infrastructure such as pipelines and rail connectivity.

"For FY25-30, we forecast a 28% EBITDA CAGR for Aegis Vopak, compared to 23% for JSW Infrastructure (JSWI), which has back-ended growth. Both companies are expected to have a similar return on capital employed (RoCE) and return on equity (RoE) by FY28. Our ₹270 target price is based on 27 times enterprise value to EBITDA (EV/EBITDA) for September 2027 estimates, in line with JSWI, and reflects a 9% potential upside," Jefferies wrote.

Key upside risks include higher-than-expected capacity utilisation and value-accretive acquisitions. However, downside risks remain, such as delays in the Kandla–Gorakhpur pipeline project, weaker LPG import trends or market share losses, and expansion projects that may dilute value.

Jefferies said that the stock is currently trading at 34 times its 12-month forward EV/EBITDA, which could cap further upside in the near term.

Established in 2013, Aegis Vopak Terminals was a joint venture between Aegis Logistics and Vopak India BV (part of Royal Vopak, a Netherlands-based leading global tank storage company).

Aegis Vopak provides tank storage and handling services for various types of liquids and LPG gases and is India’s largest third-party owner and operator of tank storage terminals for LPG and Liquid products. The company offers secure storage and associated infrastructure for products like petroleum, chemicals, lubricants, vegetable oil and LPG.

Shares of Aegis Vopak Terminals Ltd. are trading 1.87% lower at ₹238.80, after the earnings announcement.