Gateway's margin improves as profit growth outpaces revenue
Q2 consolidated net profit rose +14.16% QoQ, with slower expense growth and a lower tax rate aiding the increase.
Filed 28 Oct 2026, 13:40 IST · Gateway Distriparks Ltd (GATEWAY)
Key takeaways
- Consolidated revenue rose +5.61% QoQ, while operating profit grew +7.69%, lifting operating margin by 0.42 percentage points.
- Net profit increased +14.16% QoQ to Rs 58.53 cr, helped by a 1.76 percentage-point decline in the tax rate.
- Operating margin of 21.73% was 23.81 percentage points below the Services peer median across 11 reported companies.
Price around the results
Profit growth outpaced revenue in Q2FY27
Consolidated revenue grew +5.61% QoQ, while expenses increased +5.05%, allowing operating profit to rise +7.69%. The slower expense growth lifted operating margin by 0.42 percentage points to 21.73%. Net profit grew faster at +14.16%, as interest expense fell -1.49% and the tax rate declined by 1.76 percentage points.
Other income was not the main profit driver
Other income accounted for 6.90% of profit before tax, so the quarter's profit increase was mainly operational rather than dependent on non-operating income. The lower tax rate also supported net profit growth, making the reported increase stronger than the pre-tax profit increase of +11.44% QoQ.
Margin improved sequentially but lagged Services peers
Operating margin rose from 21.31% in Q1FY27 to 21.73% in Q2FY27, reversing the recent quarter's level but offering only a modest improvement. It remained 23.81 percentage points below the 45.54% median among 11 Services companies that had reported, placing Gateway fifth from the bottom.
Expansion and fleet changes are the management focus
Management said 10 LNG trailers are expected in Q3 FY2027, while the company told analysts that 10 EV trailers are already operating and more are in the pipeline. The presentation said construction is under way at the Indore ICD with approximately Rs 150 cr of planned capex, and that two more rakes were purchased for Q3 delivery. Management also described the Ankleshwar MMLP as asset-light, with Gateway as the exclusive container train operator.
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 | ₹580 cr | ₹549 cr | +5.61% |
| Other income | ₹5 cr | ₹6 cr | -9.62% |
| Expenses | ₹454 cr | ₹432 cr | +5.05% |
| Operating profit | ₹126 cr | ₹117 cr | +7.69% |
| Operating margin (%) | 21.73% | 21.31% | — |
| Interest | ₹13 cr | ₹13 cr | -1.49% |
| Depreciation | ₹39 cr | ₹39 cr | +1.32% |
| Profit before tax | ₹79 cr | ₹71 cr | +11.44% |
| Tax | ₹21 cr | ₹20 cr | +4.33% |
| Net profit | ₹59 cr | ₹51 cr | +14.16% |
| EPS (₹) | ₹1.16 | ₹0.98 | +18.37% |
Operating margin of 21.73% compares with a Services sector median of 45.54% across 11 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Gateway has 10 operational container terminals and has purchased two more rakes for Q3 delivery.
Guidance & outlook
- Ten LNG trailers are expected in Q3 FY2027.
Expansion
- Indore ICD construction is under way with approximately ₹150 crore of planned capex.
- Ankleshwar MMLP operates under an asset-light model with Gateway as the exclusive container train operator.
New initiatives
- Gateway is introducing EV trailers into its road fleet, with 10 already operating and more planned.
- Electric reach stackers, empty handlers and forklifts are being inducted at terminals.
- Rooftop solar solutions are in place at most locations.
- Gateway is expanding into temperature-controlled logistics through Snowman's nationwide cold-chain network.
Competition
- Double-stack DFC-aligned routes structurally lower cost per TEU versus road and non-aligned routes.
What to watch
- Whether operating margin holds above 21.73% while expense growth stays below revenue growth of +5.61%.
- Whether the 10 LNG trailers expected in Q3 FY2027 are added to the operating fleet.
- Progress on the Indore ICD construction and the planned Rs 150 cr capex.