Allcargo Terminals lifts margin as sequential profit jumps 227.94%
Revenue grew faster than expenses, but lower tax and higher other income also materially supported the sequential profit increase.
Filed 04 Nov 2026, 13:54 IST · Allcargo Terminals Ltd (ATL)
Key takeaways
- Consolidated net profit rose 227.94% sequentially to Rs 20.89 cr, helped by a much lower tax rate.
- Revenue grew 17.36% sequentially while expenses rose 15.48%, lifting operating margin by 1.25 percentage points to 23.39%.
- The tax rate fell 29.66 percentage points to 23.4%, while other income contributed 19.03% of pre-tax profit, limiting the quality of the profit jump.
Price around the results
Revenue growth outpaced cost growth
Consolidated revenue rose 17.36% sequentially, while expenses increased 15.48%, allowing operating profit to grow 23.97%. That operating leverage lifted the margin by 1.25 percentage points to 23.39%. Management said volume grew 12.6% year on year during the period, giving the revenue increase an operating-volume component.
Tax and other income amplified the profit increase
The tax rate dropped 29.66 percentage points to 23.4%, while interest was broadly unchanged, declining 0.25% sequentially. Other income rose 84.7% and accounted for 19.03% of pre-tax profit. Net profit therefore benefited from both better operating performance and below-operating-line factors.
Margin remains above the Services peer median
Allcargo Terminals' 23.39% operating margin was 1.66 percentage points above the 21.73% median for 45 Services peers that had reported the quarter. The sequential margin direction was positive after the 22.14% recorded in Q1FY27.
Capacity plans remain central to management's narrative
Management said it is targeting 20% capacity growth in FY26 to reach 1 million TEUs and remains on track for its FY30 aspiration of managing 1 million TEUs. The company said construction of the Farukhnagar Private Freight Terminal remains on track for completion by March 2027. It also said tendering for the Speedy JNPT expansion was completed, adding 60,000 TEUs of annual handling capacity.
Stock reaction was a sharp same-day gain
The stock gained 10.93% on November 4, the results date. Trading volume was 2.32 times the reference level, indicating elevated activity alongside the move.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹252 cr | ₹214 cr | +17.36% |
| Other income | ₹5 cr | ₹3 cr | +84.70% |
| Expenses | ₹193 cr | ₹167 cr | +15.48% |
| Operating profit | ₹59 cr | ₹47 cr | +23.97% |
| Operating margin (%) | 23.39% | 22.14% | — |
| Interest | ₹16 cr | ₹16 cr | -0.25% |
| Depreciation | ₹21 cr | ₹21 cr | +0.48% |
| Profit before tax | ₹27 cr | ₹14 cr | +100.96% |
| Tax | ₹6 cr | ₹7 cr | -11.39% |
| Net profit | ₹21 cr | ₹6 cr | +227.94% |
| EPS (₹) | ₹0.80 | ₹0.24 | +233.33% |
Operating margin of 23.39% compares with a Services sector median of 21.73% across 45 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +10.93% | +10.30% |
Volume on the results session was 2.32× 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.
This quarter
- Volume grew 12.6% year on year during the period.
Guidance & outlook
- The company targets 20% capacity growth in FY26, reaching 1 million TEUs.
- The company is on track to manage one million TEUs by FY30.
- The company plans to grow volumes while protecting profitability through pricing and operational discipline.
Expansion
- Construction of the Farukhnagar Private Freight Terminal remains on track for completion by March 2027.
- Tendering for the Speedy JNPT expansion has been completed, adding 60,000 TEUs of annual handling capacity.
- The company plans strategic capacity additions in JNPA, Mundra and Chennai.
- The company plans geographic expansion by strengthening its presence in northern India.
What to watch
- Whether operating margin remains at or above 23.39%.
- Whether volume growth holds above the reported 12.6% year-on-year rate.
- Progress toward the March 2027 Farukhnagar completion date and the 60,000-TEU Speedy JNPT addition.