Logistics Stock to Buy Now for 70% Upside Potential; By JM Financial

Synopsis: A leading port-based tank storage operator closes FY26 with a 52% jump in annual profit and record EBITDA margins,a top brokerage maintains its bullish stance, seeing nearly 70% upside from current levels.

India’s energy logistics sector sits at a long-term structural inflection point, driven by rising LPG imports, growing bulk chemical trade, and an emerging ammonia opportunity. As the country’s dependence on imported gas deepens, port-based terminalling infrastructure has quietly become one of the most critical links in the energy supply chain – and one brokerage believes the market is still underpricing it.

Shares of Aegis Vopak Terminals Limited, with a market capitalization of Rs. 21,384 crore, are closed at a price of Rs.192.61 i.e. 1.42% down from its previous closing price of Rs.195.4. It is trading at a P/E ratio of 68.9. 

Q4 FY26: Steady Growth, Sequential Softness

Aegis Vopak Terminals Limited (AVTL) posted a strong set of numbers for the fourth quarter ended March 2026, with revenue, operating profit, and net profit all growing at a healthy pace. For Q4 FY26, the company’s revenue from operations came in at Rs 243.45 crore, up 22.2% year-on-year from Rs 199.17 crore in Q4 FY25. EBITDA rose 24.2% to Rs 179.17 crore, with margins improving to 73.6% from 72.4% in the year-ago quarter.

Net profit for the quarter grew 15.3% to Rs 73.87 crore. On a sequential basis, however, PAT declined 17% from Rs 89.04 crore in Q3 FY26, reflecting softer profitability in the liquids segment during the quarter.

FY26 Full Year: Record Profit on Debt Reduction Tailwind

For the full year FY26, the performance was considerably more impressive. Revenue from operations grew 17% to Rs 923.08 crore, driven by strong growth in the liquids segment, which rose 27.8% to Rs 440.47 crore, while gas terminalling revenue grew 8.6% to Rs 482.60 crore. Full-year EBITDA rose 19.4% to Rs 686.45 crore, with margins expanding to 74.4% from 72.8% in FY25.

The most notable metric was net profit, which jumped 52.1% to Rs 341.92 crore from Rs 224.84 crore in FY25. The sharp earnings growth was aided by significantly lower finance costs  down to Rs 109.73 crore in FY26 from Rs 193.41 crore in FY25 – following the company’s IPO-led debt reduction.

JM Financial View: Buy with 70% Upside

JM Financial has maintained its ‘Buy’ rating on the stock with a target price of Rs 330, implying an upside of nearly 70% from the current market price. According to the brokerage report, Aegis Vopak’s Q4 performance came in below estimates mainly due to weaker profitability in the liquids segment. While overall throughput in the LPG logistics business remained broadly in line with estimates, margins in the liquids business surprised negatively.

Despite the near-term miss, JM Financial appears to retain confidence in the company’s structural growth story, underpinned by India’s rising import dependence on LPG, the upcoming ammonia opportunity, and AVTL’s aggressive capacity expansion pipeline.

About the Company

Aegis Vopak Terminals Limited is India’s largest third-party owner and operator of liquid and gas storage tank terminals. A joint venture between Aegis Logistics and Royal Vopak, it operates 22 terminals across 6 major ports, with 1.7 million cubic metres of liquid storage capacity and 225,800 MT of LPG static capacity.

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