Aegis Vopak profit jumps, but costs trim operating margin
Revenue rose 55.16% year on year, while lower tax and interest costs supported net profit; the stock's initial fall was unusually sharp.
Filed 28 May 2026, 17:40 IST · after market close · Aegis Vopak Terminals Ltd (AEGISVOPAK)
Key takeaways
- Consolidated net profit rose 78.69% year on year to Rs 73.87 cr, helped by a 3.80-percentage-point drop in the tax rate.
- Revenue grew 55.16% year on year, but expenses grew faster at 58.35%, narrowing operating margin by 0.53 percentage points.
- The stock fell 4.67% on the first trading day after the results, well below its 1.06% median move after the past four results.
Price around the results
Revenue growth translated into higher quarterly profit
Aegis Vopak reported consolidated revenue growth of 55.16% year on year and 23.27% sequentially, lifting operating profit by 54.06% and 22.80%, respectively. Net profit grew faster than operating profit year on year because interest expense fell 14.28% and the tax rate declined 3.80 percentage points. Sequentially, net profit rose 20.09% even as interest expense increased 110.35%, because the tax rate fell 7.05 percentage points.
Higher costs and depreciation weighed on margins
Expenses grew faster than revenue in both comparisons, so operating margin narrowed by 0.53 percentage points year on year and 0.29 percentage points sequentially. Depreciation rose 74.97% year on year, while interest expense was lower than a year ago but more than doubled from the previous quarter. Other income contributed 4.99% of pre-tax profit, so it was not the main source of the earnings increase.
Margin remains far above the reported Energy peer median
Operating margin eased sequentially after rising from 73.11% in Q1FY26 to 73.88% in Q3FY26, but it remained 73.59% in Q4FY26. Among 15 Energy companies that had reported the same quarter, Aegis Vopak's margin was 59.00 percentage points above the sector median of 14.59%.
Management points to LPG demand and new storage capacity
Management said India is expected to see strong industrial LPG demand, drawing a comparison with China's demand growth. The company told investors that its upcoming ammonia storage facility is expected to be operational by FY26, while an independent 36,000-MT ammonia terminal is scheduled for completion by Q1 FY27. Management also said Aegis Vopak acquired a 75% stake in Hindustan Aegis LPG Ltd, which is now a subsidiary.
The initial market reaction was unusually negative
The stock fell 4.67% on the first trading day after the results and was down 7.57% after five trading days, underperforming the market by 5.31 percentage points at day five. That compared with a median absolute move of 1.06% after the past four results, when the stock rose twice and fell twice. The shares were up 15.84% after 15 trading days, but the results were filed after market close and the immediate response was notably weaker than the stock's usual post-results move.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹243 cr | ₹197 cr | +23.27% | +55.16% |
| Other income | ₹4 cr | ₹3 cr | +48.46% | -69.50% |
| Expenses | ₹64 cr | ₹52 cr | +24.62% | +58.35% |
| Operating profit | ₹179 cr | ₹146 cr | +22.80% | +54.06% |
| Operating margin (%) | 73.59% | 73.88% | — | — |
| Interest | ₹41 cr | ₹20 cr | +110.35% | -14.28% |
| Depreciation | ₹55 cr | ₹50 cr | +10.26% | +74.97% |
| Profit before tax | ₹87 cr | ₹79 cr | +10.11% | +70.72% |
| Tax | ₹13 cr | ₹18 cr | -24.79% | +36.67% |
| Net profit | ₹74 cr | ₹62 cr | +20.09% | +78.69% |
| EPS (₹) | ₹0.62 | ₹0.56 | +10.71% | +47.62% |
Operating margin of 73.59% compares with a Energy sector median of 14.59% across 15 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -4.67% | -3.16% |
| Next session | -6.26% | — |
| 5 sessions | -7.57% | -5.31% |
| 15 sessions | +15.84% | — |
| 30 sessions | +47.40% | — |
Volume on the results session was 0.79× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The company expects strong industrial LPG demand in India, similar to China.
- AVTL expects its upcoming ammonia storage facility to be operational by FY26.
- The independent 36,000-MT ammonia terminal is scheduled for completion by Q1 FY27.
Expansion
- AVTL acquired a 75% stake in Hindustan Aegis LPG Ltd, which is now its subsidiary.
Competition
- AVTL describes itself as the largest Indian third-party liquid and gas storage tank terminal owner and operator.
What to watch
- Whether operating margin holds above 73.59% after the sequential 0.29-percentage-point decline.
- Whether depreciation remains elevated after its 74.97% year-on-year increase.
- Progress toward the independent 36,000-MT ammonia terminal's scheduled Q1 FY27 completion.