Key Quantitative Figures and Guidance

Gateway Distriparks Container Business Performance:

  • Q2 rail volumes showed 11% sequential recovery
  • Targeting minimum 100,000 TEUs per quarter for rail volumes
  • Expecting double-digit growth for next fiscal year
  • Q2 blended realization improved 5% YoY and 7% QoQ

Snowman Logistics Performance:

  • On track to cross INR 100 crores EBITDA this year
  • Warehousing revenue grew 10-11% YoY
  • Pallet storage volumes increased approximately 10% YoY
  • Current utilization rate at 85-86%

Capacity Expansion and Development Projects

Snowman Logistics Capacity:

  • 23,000 pallets under construction for capacity expansion
  • Additional 20,000 pallets under discussion
  • Some park-and-pay warehouse leases ended, reducing temporary capacity
  • Dry storage represents 10-12% of total capacity

Gateway Distriparks Projects:

  • Ankleshwar MMLP received all EXIM permissions, expecting volumes in Q3
  • Targeting 5,000 TEU per month at Ankleshwar (long-term target)
  • Indore ICD construction in full swing with civil and rail works started
  • Targeting December 2027 operational date for Indore ICD
  • Jaipur ICD court case: final arguments completed, order reserved

Western DFC Impact and Railway Operations

  • Gateway Distriparks operated first double stack train from JNPT on June 20, 2026
  • Potential road-to-rail shift of 10,000-15,000 TEUs per month at JNPT
  • DFC enables 30-35 hour transit time from Gurgaon to Mundra (vs 40+ hours previously)
  • EXIM trade imbalance at 56% import and 44% exports
  • Indian Railways offering discount on upper stack containers for double stack operations

Business Segment Updates

5PL Business (Snowman):

  • Grew only 1-2% in Q2 FY27
  • No new customers added in current financial year
  • One major customer expanded scope to pan-India operations
  • Pricing linked to customer sales volumes with contractual guardrails
  • Not pursuing low-margin 5PL business aggressively

Cold Chain Operations (Snowman):

  • New capacity additions focused on cold temperature controlled facilities
  • Minimal dry capacity in new expansions
  • Mix optimization ongoing by replacing lower-paying customers
  • Power cost increases typically passed through during contract renewals (6-8% expected increases)

Market Dynamics and Competitive Landscape

  • Gateway facing competition from Adani's end-to-end bundle offerings and CONCOR
  • Maintaining market share in NCR, Punjab and Uttarakhand regions
  • Using IT advancements (AP integration, OCR tracking) for customer stickiness
  • Minimum wage hikes impacting costs: Karnataka 70%, Haryana 35%, Punjab increases

Financial Strategy

Snowman Logistics:

  • Reinvesting profits leading to higher interest and depreciation costs
  • Focused on operational cash flow rather than accounting PAT
  • Long-term asset horizon (30-40 years)
  • Capex targeting 15% IRR and 7-year payback for new projects

Margin Context:

  • Core cold storage margins intact
  • Build-to-suit has lower margins but no capex requirement
  • Park-and-pay margins under 10% (spot basis)
  • Margin pressure from wage code changes, gratuity, PF ceiling limits

Regulatory and Legal Matters

  • Jaipur ICD court case awaiting final order after completed arguments
  • If favorable, would take up to 18 months to become operational
  • All required EXIM permissions obtained for Ankleshwar MMLP