Allcargo Terminals Limited (ATL) Earnings Call Transcript & Summary

Good morning, dear members. My name is Kaiwan Kalyaniwalla. I am chairing this meeting as the Chairman and Non-Executive Director of your company, and I welcome you all to the 7th Annual General Meeting of our company, being held through video conferencing in accordance with the applicable provisions of the Companies Act, SEBI regulations and circulars. The company has made necessary arrangements for the shareholders to join the meeting through video conferencing in compliance with the laws. As the requisite quorum is present, I now call the meeting to order. Let me take this opportunity to introduce you to the Directors on the Board and the KMPs joining this AGM. You all know Mr. Shashi Kiran Shetty, our Allcargo Group Chairman and Non-Executive Director on our Board; Mr. Mahendrakumar Chouhan, Independent Director and Chairperson of the Stakeholders Relationship Committee and the Corporate Social Responsibility Committee; Mrs. Radha Ahluwalia, Independent Director and Chairperson of the Nomination and Remuneration Committee and Risk Management Committee; Mr. Prafulla Chhajed, Independent Director and Chairperson of the Audit Committee. I have the pleasure of introducing you now to Mr. Pranav Choudhary, who is recently appointed as our Managing Director; Mr. Ashish Chandna, Chief Executive Officer; Mr. Pritam Vartak, Chief Financial Officer; and Malav Talati, our Company Secretary and Compliance Officer. We also have representatives of the statutory auditors, M/s S.R. Batliboi & Associates; secretarial auditors and scrutinizers, Pramod S. Shah & Associates; practicing company secretary; Ms. Tejashree Kokane, internal auditor, have also joined this AGM. Malav?

Thank you so much, sir, for the brief introduction. Good afternoon, dear shareholders, members joining this meeting. I, Malav Talati, Company Secretary and Compliance Officer of your company, welcomes you all to the 7th Annual General Meeting of Allcargo Terminals Limited, which is being held through video conferencing in compliance with the regulatory requirements. The deemed venue for this AGM shall be the registered office of the company. The facility to join this AGM through video conferencing is being made available to the members on first-come, first-serve basis pursuant to the regulatory requirements. Members attending the AGM through video conferencing being counted for the purpose of reckoning the quorum under Section 103 of the Companies Act 2013 and as per MCA circulars. Since there is no physical attendance of the shareholders, the requirement of appointing proxy is not applicable. The register of directors and KMP and their shareholding and register of contracts and arrangements are available for inspections and will remain accessible to the members. The AGM notice dated August 11, 2026, convening this AGM and the copy of the annual report for the financial year ended March 31, 2026, have already been circulated to the members of the company electronically and through physical circulation whose e-mail IDs are not registered. With your permission, we take them as read. Further, the auditor's report on stand-alone and consolidated financial statements for the financial year ended March 31, 2026, do not contain any qualifications, reservations or adverse remarks, which may have any adverse effect on the functioning of the company and hence not required to be read at this AGM. Before we start the proceedings of this AGM, I would like to inform you that the members who have joined this AGM are by default kept on mute mode to avoid any disturbances. Once the Q&A session starts, we will announce the name of the members who have registered as speaker shareholders one by one. The members are requested to restrict their questions to the members (sic) [ business ] being transacted at the meeting. As per the provisions of the Companies Act and the SEBI regulations, your company has provided the remote e-voting facility to the members through NSDL platform to cast their votes prior to the meeting. The remote e-voting commenced on September 17, 2026, at 9:00 a.m. and concluded on September 21, 2026, at 5:00 p.m. Members as on the cut-off date, that is September 15, 2026, only shall be entitled to cast their votes. Members who have not cast their votes through remote e-voting and who are attending this meeting will have an opportunity to cast their votes during the meeting. The e-voting will be available for 30 minutes after the conclusion of this meeting. Members who have exercised their votes through remote e-voting prior to the AGM will be eligible to participate at the AGM through video conferencing, but they shall not be entitled to vote at this AGM. Members can go to the NSDL e-voting website and cast their votes. I would request Mr. Kaiwan Kalyaniwalla, Chairman, to proceed ahead. Thank you, sir.

Thank you, Malav. Once again, hello, everyone. As Chairman of your company, Allcargo Terminals Limited, it is my privilege to address you all today. I hope, in my brief address, to answer most of the questions which already have been put to us earlier by my shareholders. And hopefully, this will give you an idea of exactly where we are today and where we are progressing, your company is progressing further. Even then, I'm sure you have certain questions, which you may please put to us, and we'll be more than happy to the best of our ability to answer them. I'm pleased to share that in FY '25-'26, your company has steadily made progress despite global geopolitical uncertainties, changing trade dynamics, disruptions across shipping routes and continued supply chain volatility. India's resilient economic activity, supported by infrastructure spending, manufacturing expansion, policy reforms and accelerating multimodal integration provided a supportive backdrop for the EXIM and logistics sector. Against this backdrop, we focused on disciplined execution, cost efficiency and customer responsiveness. Our gateway presence, integrated logistics capabilities, and customer responsiveness enabled operations, enhanced our ability to address evolving supply chain requirements, improved financial performance, and strengthened key trade corridors. India's logistics and EXIM ecosystem is undergoing a structural transformation, driven by Make in India manufacturing, global supply chain diversifications and large-scale infrastructure investments. Containerized trade is becoming an increasingly important part of integrated supply chains. This transformation is reflected in rising trade volumes with container traffic across the key ports of JNPT, Mundra, Chennai and Kolkata. Port modernization, dedicated freight corridors, linked evacuation capabilities, and improved hinterland infrastructure are supporting more efficient cargo movement. In parallel, ongoing industry formalization is increasing the importance of scale, operational reliability and integrated service offerings. Our presence across ports handling nearly 80% of India's container traffic provides a strong base from which to participate in this long-term growth. During FY '25-'26, we handled over 723,000 TEUs, registering a 6% year-on-year growth. This increase in throughput supported an 8% rise in revenue. EBITDA increased by 26%, while profit after tax improved by 46%, reflecting stronger operating performance across our network. These results were supported by higher capacity utilization, process optimization, improved productivity and disciplined capital allocation under our asset-light operating model. Cost control, operational flexibility, service consistency, turnaround efficiency and execution quality further strengthened our performance. Our multimodal connectivity, integrated capabilities and technology-enabled operations position us well for India's evolving logistics ecosystem. Sustainability and responsible governance remain integral to our operating model and long-term growth. We are advancing environmental stewardship through renewable electricity adoption, energy-efficient infrastructure and resource-conscious terminal operations. Currently, 12% of our energy consumption comes from renewable resources, helping avoid 739 tonnes of carbon dioxide equivalent emissions during the year. At ATL Chennai CFS, renewable electricity contributes significantly to power consumption through open access renewable energy and rooftop solar power. Additionally, 25% of our 3-tonne forklifts have been transitioned to electric models, while the deployment of sensor-based lighting systems further supports our efforts to reduce emissions and improve operational efficiency. These initiatives support our long-term goal of achieving carbon neutrality by 2040. Beyond environmental stewardship, we remain focused on building a responsible and future-ready organization. All 7 ATL locations are certified to ISO 9001, ISO 14001, ISO 45001, and CTPAT standards, while ATL is also ISO 20000-1 certified. Our risk management framework is aligned with ISO 31000 and supported by business continuity practices aligned with ISO 22301, reinforcing resilience, accountability and operational excellence across our network. Our Board-approved Aspiration 2030 road map sets out our long-term ambitions for building a scalable, future-ready enterprise. To support these ambitions, we have planned cumulative CapEx of over INR 400 crores, focused on strengthening capacity, improving network density, enhancing operating leverage, and deepening our presence across high-growth trade corridors and logistics hubs. In line with this road map, we advanced key capacity and network initiatives during the year. Our JNPT expansion added 170,000 TEUs of incremental capacity at India's largest container gateway. Upcoming developments at Mundra and Chennai are expected to strengthen our coastal logistics presence. Inland, our proposed Farukhnagar ICD initiative aims to leverage DFC-linked infrastructure, improve access to industrial and consumption centers and expand rail-linked cargo participation. Technology and digital integration remain central to our long-term strategy. Through our MyCFS platform and streamlined workflows, we simplify cargo management, provide real-time visibility, improve turnaround management, and enhance customer convenience. Increasing digital adoption across documentation, tracking, operational coordination and customer interface is strengthening execution quality, transparency, process efficiency, responsiveness, service reliability and reducing turnaround time. As India's EXIM dynamics evolve towards greater scale and integration, we remain focused on participating in the resulting logistics opportunities. Our network across major gateway ports, technology-enabled infrastructure and disciplined capital deployment provide a foundation for sustainable growth and consistent performance. On behalf of the Board, I would like to express my sincere gratitude to our customers, business partners, employees, shareholders and all stakeholders for their trust and support. As we execute our Aspiration 2030 road map, we remain focused on strengthening our capabilities, supporting trade across critical logistics corridors and creating sustainable long-term value. Thank you very much. Over to you, Malav.

Thank you so much, sir, for demonstrating key business, financial performance and future outlook of the company. Now we will move to resolutions of the meeting as detailed in the Notice of Annual General Meeting dated August 11, 2026. Resolution #1, to receive, consider and adopt the audited stand-alone financial statements of the company for the financial year ended March 31, 2026, together with the report of the Board of Directors and auditors thereon, and the audited consolidated financial statements of the company for the financial year ended March 31, 2026, together with the report of auditors thereon, as an ordinary resolution. Resolution #2, to appoint a director in place of Mr. Kaiwan Kalyaniwalla, who retires by rotation, and being eligible, offers himself for reappointment, as an ordinary resolution. Resolution #3, to appoint Mr. Pranav Choudhary as a Director of the company, as an ordinary resolution. Resolution #4, to appoint and to fix remuneration of Mr. Pranav Choudhary as the Managing Director of the company, as a special resolution.

We'll now move to the question-and-answer session. Members who have preregistered themselves as speakers, shareholders may ask their questions in relation to any item of business. Once all the members have asked their questions, I request the Chairman and the management to answer them all together. I shall now call out the names of the speakers one by one to ask the questions. Mr. Yogesh Vesvikar.

Good afternoon, sir, to all the Board members and my fellows over here. Sir, I am really proud to be a part of this All Cargo Group and all the other [indiscernible] brought as a value addition to our other companies. So sir, much of my queries were suitably answered by our secretary team. Mr. Malav Talati ji has suitably answered them. So once again, I thank for the secretary team for all the correspondence related to this AGM. As far as your speech was concerned, sir, you have also explained how we are growing further JNPT and [indiscernible] going on. So there's not much to ask. Only one, sir, question. Sir, we have a subsidiary and [indiscernible] through which we are trying to [indiscernible] Speedy Multimodes Limited. So what kind of activities we are going to have, I just want to listen from you. And once again, I would like to thank the promoter group, Mr. Shetty, for all the progress we have done and creating the value for shareholders. Thank you for allowing me this speech, sir.

Thank you very much, Yogesh.

Thank you. Next speaker is Mr. Himanshu Trivedi.

The speaker shareholder is not connected.

Next is Mr. Hitesh Solanki.

The speaker shareholder is not connected.

Mr. Naresh Kachalia?

The speaker shareholder is not connected.

Mr. Anil Mehta.

Good afternoon to all. This is Anil Mehta. I attend this Annual General Meeting of the company with my family members. They are also the shareholders of the company. On behalf of us, we have 2 questions. The question #1, looking to the global situation, how much growth can we expect, and how much it will affect our revenue and the bottom line in the current FY 2026-27? And the second question, what is the AI effect on our company, which is we are as a shareholder supporting all the resolutions and thank the secretary department for their cooperation and support, and all the best for the bright future of our company. Thank you for allowing me to speak. Kindly proceed for the further items.

Thank you so much. Thank you, Mr. Mehta.

Thank you. Our next speaker is Mr. Ram [indiscernible].

The speaker shareholder is not connected, sir.

Ms. Lekha Shah.

[Foreign Language]. I strongly support all the resolutions before the meeting today. Chairman sir, please continue videoconference meeting in future. And God bless you, sir. Thank you so much.

Thank you, and God bless you, Lekha ji.

Our next speaker is Mr. Bimal Agarwal.

Good afternoon. Yesterday, I had joined, but I had joined through other portal. I had joined the meeting, but some problem was there in the Zoom yesterday.

Yes, yes.

Sir, good afternoon to you. Good evening, good night and good morning to the other directors or other shareholders who have joined from different parts of the world. First of all, I'd like to thank the Company Secretary, his team, management staff and the shareholders. Sir, please try to arrange a visit for the shareholders.

I will certainly speak to the team.

And I have already supported all the resolutions for the same. Once we had gone for the visit. It is after long time you should arrange a visit. That's all from me. Thank you very much. And I have already supported all the resolutions for the same. Thank you very much. Please continue videoconference in future.

Thank you, sir.

Our next speaker is Mr. Kishore Kachalia.

The speaker shareholder is not connected, sir.

Next speaker is Ms. Pragna Kachalia.

The speaker shareholder is not connected, sir.

Mr. Rama Kachalia.

The speaker shareholder is not connected.

Ms. Prakashini Shenoy.

I'm Prakashini Ganesh Shenoy from Bombay. Respected honorable Chairman, Mr. Kalyaniwalla ji, and other dignitaries from the Board and my fellow shareholders, good afternoon to all of you. I received the AGM report well in time, which is colorful, informative, transparent and contains all the information as per the corporate governance. I thank Mr. Malav and his team for the same. I should not forget to thank him once again for calling me and reminding me of today's meeting, without which I will not be in a position to speak. Thank you, Mr. Malav, for your great gesture. The Chairman has given a beautiful picture regarding the company and its working in all parameters. Chairman sir, [Foreign Language]. At the outset, I'm thankful to the Board for recommending dividend for the financial year '25-'26. I'm also glad that the company is doing outstanding work in the field of CSR activities. Last but not the least, Chairman, sir, may I personally request please continue with VC, so that people all over will have an opportunity to express their views. I wish the company good luck for a bright future and pray God that the profit of the company shall reach the peak in due course. Sir, I strongly and wholeheartedly support all the resolutions put forth in today's meeting. Thank you, Chairman, sir.

Thank you, Ms. Shenoy. Thank you very much.

Next speaker is [ Mr. Jehangir Batliwala ].

The speaker shareholder is not connected.

Mr. Dilip Kumar Jain.

The speaker shareholder is not connected.

Mr. Damodaran Tumuluri.

The speaker shareholder is not connected.

Mr. Rajendra Sheth.

The speaker shareholder is not connected.

Mr. Yusuf Rangwala.

The speaker shareholder is not connected.