Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Adani Ports and Special Economic Zone Limited (NSE: ADANIPORTS) Q4 2026 Earnings Call dated Apr. 30, 2026
Corporate Participants:
Rahul Agarwal — Head of Investor Relations and ESG
Ashwani Gupta — Whole-Time Director and Chief Executive Officer
Analysts:
Priyankar Biswas — Analyst
Alok Deora — Analyst
Koundinya Nimmagadda — Analyst
Achal Lohade — Analyst
Unidentified Participant
Ketan Jain — Analyst
Pulkit Patni — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Adani Port Limited Q4FY26 earnings conference call hosted by JM Financial Institutional securities Limited. As a reminder, all participant lines will be in the listen only mode. And there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr. Priyankar Biswas from JM Financial Institutional securities. Thank you. And over to you.
Priyankar Biswas — Analyst
Thank you. So good evening ladies and gentlemen. We have the management of Adani Ports and ACZ Represented by Mr. Ashwini Gupta, Full Time Director and CEO, Mr. Krishna Menon, the CFO, Pranav Chaudhary, Head of Ports. Divach Taneja, Head of logistics. And Mr. Rahul Agarwal, the head of investor relations and ESG. So we are here to discuss the 4Q act as well as FY26 results and the outlook going at. So without any ado, I will hand over to Mr. Rahul Agarwal, The Head of Investor Relations and ESG.
So over to you, Rahul.
Rahul Agarwal — Head of Investor Relations and ESG
Thank you, Priyanka. Good evening and hello and welcome everyone to APSCG’s fourth quarter earnings call. We will begin with Mr. Ashwini Gupta’s opening remarks and then open the floor for Q and A.
Ashwani Gupta — Whole-Time Director and Chief Executive Officer
Thank you. Sorry. Good morning, Good afternoon. Good evening everyone. Thank you for giving this opportunity for us to share with you our financial announcement. To start with, we said 500 million metric tons and we delivered it. As we said, obviously this is not an operational statistic. It marks an India’s infrastructure moment. Now coming to the financial announcement. Once again we have exceeded the guidance. APS Z outperformed the upper end of revenue, EBITDA and Capex while closing with net debt to EBITDA at 1.9x and return on capital employed of 16%.
Another evidence of our healthy business growth with financial discipline. The FY26 revenue grew by 25%, EBITDA grew by 20% and PAT grew by 16%. During the year we faced challenges and disruption starting with Operation Sindur, various geopolitical issues and West Asia crisis. Still we delivered serving the nation by handling LPG vessels, managing transshipment overflow from Middle east, providing free storage to containers and helping the country to continue with the trade. Despite that we over delivered what we promised.
Every year we set a guidance and every year we exceeded. This is not by luck, this is integrated in our culture. Domestic ports handled 451 million metric tonnes. Revenue and EBITDA grew by 13% and 14% respectively and the market share at 27.1%. The return on capital employed increased to 23% from 21%. The international ports revenue grew 34% and EBITDA increased 180% led by ramp up at CWIT Colombo terminal and completion of NQXC Australia acquisition. But in the annual announcements we counted only the quarter four.
The Australia the second business logistics revenue grew by 55% in FY26. The return on capital employed increased to 10% from 6%. Though in our ambition 2030 plan we said that we will take three to four years to bring the return on capital employed in logistics to double digit. But I think in FY26 itself we we hit 10% and this was possible. With the strong momentum in Asset Light and Asset Zero services along with the utilization of the Asset heavy which are mainly the ICDs. The marine revenue which is the third business pillar, EBITDA increased by 134% and 125%.
It was led by highest ever fleet of 136 vessels. So I would really like to say thank you for keeping the confidence in APSCZ and having this support. So we look forward to hear from you. Feedback, questions and thank you. Thank you very much.
Rahul Agarwal — Head of Investor Relations and ESG
Thank you. Ashwini. We will now open the floor for questions. Yes, Ashree,
Questions and Answers:
Operator
Yes, thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press STAR and one on their touchstone telephone. If you wish to remove yourself from the question queue you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We’ll take a first question from the line of Alok Deora from Motilal Oswal. Please go ahead.
Alok Deora
Hello, good evening and congratulations on decent set of numbers. So first question was on the, you know, the performance. I mean if I look at the absolute numbers we have still done pretty okay but the margins have come off. So I mean we are, you know typically we see 59 to 60% sort of EBITDA margins. Now it’s come at around 56. So is it like a one off there or if you could just elaborate on that
Ashwani Gupta
I think. No, thank you. Thank you for that question. You Know, when we talk about margins, you always have a seasonality, but the fundamentals are there and we are delivering the fundamentals. As you saw that overall port margins remain consistent. Now, you may see a drop in the individual ports, but if you look at, I think you will have more time to go into the details. But if you look at, they are mainly the cargoes where we have the dry cargo. And you may see a little bit drop in Gangavaram, you may see a drop in Azira, you may see a drop in Namra, but you may see a drop in Krishna patterns.
So this is the combination of. On one side we are investing on the expansions like in Gangavaram port to capture the agriculture cargo, which we believe fertilizer and agriculture cargo. We are building the warehouse and so on and so on. So I think there is a. Because of all these disturbances which we have seen, we have seen the change in the business mix and to adapt to the business mix, we have to reschedule our operational processes. Of course, it takes time. For example, as I said before, you would have read in our public advisory that we gave the extended free storage for the containers in mundra.
We used 100 acres of land extra to keep the containers because this is for the country, this is for the community, this is for the world. So if I’m giving a free storage to a shipping line, they are bringing the containers, which they cannot take it to Middle east because of the, because of the crisis. They are keeping 100 containers with us, but then they want to take 20 containers back because the 20 containers have got necessities, you know, food and so on, which are only allowed to be, to be bought in the Middle East.
So we have to see that we exist to serve the community, to serve the nation, to serve the maritime industry. So definitely this has impacted. But as you know, these are all short term and our fundamentals are still there. And that’s why you would have seen that overall port margin exist and continuing where we didn’t have these kind of disruptions like international ones, Colombo and so on, you would have seen that we have delivered significant improvement in the EBITDA margins. But yes, in the dry cargo ports, because we are resetting the operational processes.
The imported coal was less, so we shifted to coastal coal. So definitely we are talking about aligning the processes. So this is what I can say. But yes, there are four ports where you will see a drop in the margin. But you will also see many ports where we have increased, we have increased the margin. But at the end what we want to deliver is return on capital employed. Right. That’s what is the indicator which our shareholders, our investors are looking for. If you look at overall return on capital employed on the domestic ports, we have delivered 2% more, which is 23%.
Alok Deora
Sure, thank you for the elaborate answer. So just on the return on capital, I mean you in the logistics business, actually it has shot up quite a lot in FY26 from 6% to 10%. So just some color on that. And you know, in your guidance of FY31, your revenue in logistics is growing by a whopping 34% and EBITDA is growing by 27. So that means there will be some sort of a margin consolidation there. So yeah, you know, when the size is becoming almost, you know, a 20,000 crore logistics business by FY31, would the margins be slightly higher than the current levels or it would be there would be some sort of consolidation that just.
If you couldn’t highlight on that, thank you.
Ashwani Gupta
I think, you know, the result of 10% is not by luck. I mean we have a strategy, I think one and a half years before we explained the strategy of combination of addressing this business by Asset Heavy, Asset Light and Asset zero. And this is what we delivered. Obviously if you look at the mix, you will see that the mix of Asset Zero and Asset light has increased as compared to asset heavy. Because we are doing really well on our freight forwarding business, on our trucking business. So definitely that has given a boost.
But once again on one side we have to see independent businesses because that’s where I think we are transparent in sharing with you, each and everything. But on the other side we have to do. We have to also see that straightforwarding business at the end brings the volume to the asset heavy business. So both are interlinked and both are complementary. Both are complementary to each other. Now moving forward, you know, once again our objective is to give you 20% return on capital employed as APSC’s at level.
Now how the business mix will change, how we will move forward. We wanted to give you a hypothesis so that you have in your mind. But for sure, when we talk about the logistics business and there is no surprise in it that ebitda, which we earn is not in direct proportion with the revenue and as a consequence there is a business mix impact. Having said that, what is important for us is to give absolute amount of growth and the return on capital. So that’s why FY31 and FY20 we launched this plan in 2024.
We delivered in 2024 we delivered in 2025, we delivered in 2026. Now it was right time for us to give you one year more, but with a better forecast. So if you look at our deck which we have Uploaded already, ambition 2031, we have taken all the feedbacks you guys have given to me in last one and two years, especially the capital allocation. We have said very clearly what is domestic ports, what is international ports. In logistics also, we have re estimated our assumption. We have given you the allocation for the marine and we have also given the allocation for the decarbonization and the technology which is driving our efficiency and the productivity moving forward.
You may see other things also, but I think we can discuss it after you have gone through it in 101 calls. But to answer to your question, our commitment, our promise is to deliver twice the growth in five years with a 20% return on capital at consolidated level. But then of course, domestic ports are really doing well. Touchpod and it will do well. And international ports have picked up and logistics and marine will be the booster to contribute to the APSS overall growth.
Alok Deora
Sure. Thank you so much. Just one last question if I can. So you have given a very detailed breakup on the capacity addition of December 2030, where capacity goes from 653 to 1 billion ton. Right
Priyankar Biswas
Now
Alok Deora
We have given a guidance of 1 billion ton of cargo volume handled, which includes 850 million ton of domestic. Now you know, if we do the math, then, you know, out of the 1 billion capacity, is it really possible to kind of handle 850 million tons? Because typically the utilization stands at around 80% or so. And plus entire capacity might not be fully, you know, functional during this, during 2030. Some of it might come near the end of that period. So just any guidance on the volume, if any changes there or.
Ashwani Gupta
Yeah, yeah, you’re right, you’re right. At first we have to know that when we do the theoretical capacity planning, we always consider 20%. Right? Always. Capacity planning is done at 80%. So if I’m saying that I have 1:1 billion, you can see it is at 80% of the total capacity. And then you would have seen another thing, which is the last is we are investing in technology to improve the, to improve the efficiency. So you may be wondering why, you know, in one month Mundra is doing 770,000. If you try to calculate the capacity, what we have in Mundra and what we are delivering, which is 770,000 in a given month, you will, you will hit 94% utilization
Alok Deora
Got it. So you’re saying that 1 billion ton comes in, but within that 1 billion you would be able to handle 850. The volume guidance does not change.
Ashwani Gupta
Yeah, 1 million is a theoretical capacity. You know, it’s at 80%. So you can go up to 1.1, 1.2.
Alok Deora
Sure. So volume numbers, the longer term volume number. Volume guidance does not. Has not changed. Hello.
Ashwani Gupta
That this volume does not include the merger and acquisition.
Alok Deora
Yeah, this is all. So any,
Ashwani Gupta
Any, any headwind which may come like it came last year with operations indoor and West Asia crisis. Definitely we have a buffer which we will do in next five to six years. The acquisitions to cover up. And we have, we have, we have the money to do that, but we have not incorporated in our top line and bottom line and also is the Capex Sprint. Thank you.
Alok Deora
Yeah, thank you so much, sir, for the elaborate answer. And I wish you all the luck, sir.
Ashwani Gupta
My pleasure. Thank you.
Alok Deora
Thank
Operator
You. Next question is from the line of Manish Somaya from Canvas. Please go ahead.
Priyankar Biswas
Good evening, Ashwini, and congratulations to you and the team. On a strong team goes to fiscal 26. Since we just talked about your fiscal 31 plans, maybe if you can just help us understand how we should think about some of the more important milestones over the next 12 months that we should keep track of.
Operator
Ladies and gentlemen, we have lost the management connection. I request you to stay connected please, while you reconnect. Ladies and gentlemen, we have the management team back on the call. Manish, can you repeat your question please?
Priyankar Biswas
Of course, Ashwini. Congrats again on a fiscal. On a strong fiscal 26. Since we were just talking about your long term plans pertaining to fiscal 31, maybe if you can just talk about some of the important milestones over the next 12 months that we should keep track of.
Ashwani Gupta
Thank you. Thank you, Manish. I said after listening to your congratulations message, we were so excited. We wanted to have a glass of drink. So. Thank you. Thank you. I think what is very important, not even the 12 months, I think the quarter one is very important because in quarter one we expect to get the business mix change. I think that all the free storages and everything and the business mix change between the containers and so on may be improved in next three months. So you may see a change in the container.
But the second biggest change, which you should print. Sorry, which you should track is the coal. As you know that Indian government has given the direction to all the power plants to run at the peak, including the imported coal. And the reason being that anticipation is there will be a comparatively weaker monsoon. Anticipation is heat is high, which we are already seeing now. You know, Ahmedabad is running at 43. And I don’t think that renewal capacities, even if India did a record in setting up 50 gigawatt last year, but I don’t think that renewal capacities and the conversion of electron and into the transmission and transmission to the distribution will fulfill that demand.
That’s a second. The third I think the challenge on LPG will remain and I think people are shifting from LPG to electric stores and so on and so on. Though it does not change sort of mix for us because NPG is not a big mix for us. But on the other side, definitely when the power plants will run at peak, you will see the uplift in the poll. And that’s why you would have seen that last year Tata Power was almost closed for the whole year. And now Tata Power is fully fired and running at its full capacity.
So that’s the second trend, the third trend which you should see that you have seen that after Flure is out of opec, the pipeline which is there, which bypasses the state of hollows, there should be a free flow of the crude. And that’s why we may not see any challenge on the crude oil. Which means what, Manish? Which means we kept our guidance conservative considering that if the oil prices do not come down, India as a country may not see that much of optimistic growth and we may see a gap between supply and demand which may rise the inflation and blah, blah, blah.
But if this route works and if what everybody’s planning works, I think we should see a positive side and I think quarter one will tell us what is the positive. So that’s what I would say Munish. I think quarter one we will come to know many, many tailwinds which will come. But we want to be very conservative because we don’t know what will happen tomorrow. You know, nobody knows, nobody has a crystal ball. But still we have made some assumptions and based on those robust but conservative assumptions, we will maximize the opportunity and minimize the risk.
Priyankar Biswas
Okay, that’s super helpful. Ashkini. I just have two other quick questions. One is on international ports. Obviously very strong margin performance. Clearly NQXT and the acquisitions that you made earlier contribute. But how should we think about sustainable margin for international ports going out?
Ashwani Gupta
I know that’s a great question, Manish. I think last time, I think since two or three or four quarters I’ve been sharing a couple of things. The first thing is the governance of all the International ports are now in Ahmedabad which means we control it from Ahmedabad. That’s first thing. The second thing is the CEO and the CFO we have put it with Adani DNA. So which means these two guys are running with the DNA which we have and that result is. You can see the results now. And now moving forward our focus will be more on.
On the market share. So for example Colombo in the phase one we focused on transshipment terminal. That’s why our mix is 100% transhipment whereas the whole country mix is 85% transhipment and 15%. We have not touched the hexium potential. Now when we are building up the phase two capacity which will be finishing very soon we are getting into the. We are getting into the, into the EXIM trade. So keeping the profitability margins, growing the market share and then introducing the culture of partnership and the leader organization which I have talked about this morning in the Envision 2031 deck will help international operations to deliver more margins than their competitors in that region.
Obviously they cannot match the margins which we make in India. But definitely over there they will be best in class as compared to their competitors in those regions.
Rahul Agarwal
And Manish just wanted to take a look at the four international ports exitate on ebitda. So that will be a decent indication for you.
Priyankar Biswas
Okay, thank you Rahul. And then just lastly on Capex I saw CAPEX was a bit higher in guidance. Maybe if you can just elaborate on that.
Ashwani Gupta
Yeah, no thank you. I think you are spot on. We have accelerated the capex on. If you see ambition 2031 slide number which one where we have done the 4 India growth story which was. Slide number 20 because this is thank you to everyone’s feedback. We have really introduced logic, rational why and where we are investing. So we have accelerated our CapEx A in Mundra because we are fully full and now we have CT5 which is coming up but we have accelerated the future expansion. Then we have accelerated our capex in Damra because of the huge volume which is coming up especially because of the RSR rail, sea rail, coastal cargo movement.
We have accelerated our capex in Hasira because of the liquidity. So in line with the India growth story, in line with the growth pillars we are investing accordingly. So that’s what I can say. And spending more Capex means we will be providing more growth. But we have a logic where we are accelerating our capex and Vijingam sorry because Vijingam already we are at 100% capacity and in the west Asia crisis We had many vessels who were waiting outside. So we are not waiting for the phase two and we have kicked off already the phase two and phase two we are again doing it with automated terminal and that’s where we want to go.
And in addition we have already started a lot of automation investments to improve the productivity at each of the existing ports. So to answer your question, we have accelerated the CapEx because we want to have more than 1 billion capacity investment by 2030.
Priyankar Biswas
Thank you. Thank you Ashwini and best of luck to you and the team.
Ashwani Gupta
Thank you sir.
Operator
Thank you. Next question is from the line of Bharat Shah from BCS Capital Ideas. Please go ahead.
Priyankar Biswas
Yeah. Hi Ashwiniji. Hearty, hearty congratulations. I mean in fast moving world with a lot of unpredictable challenges in a complicated multi dimensional business like ours, to manage it so well really requires depth and labor of the management and the planning. So I fully appreciate your comment that the results have not come by chance but by good planning efforts, risk mitigation and intelligent anticipation of what all many issues can come. I just had to, I don’t have really a question to raise not because no question arises in my head but simply because I think the transparency with which so many details have been laid down in the presentation especially about future is really, really remarkable.
I mean the granular level of details which have been given year by year spelled out each asset by asset. Whether it is about roc, whether it is about daep, whether it is about the cash flows and all many, many arena involved arenas involved in that. I think it is remarkable. Secondly, I, I was really delighted and surprised how quickly logistics businesses reach a double digit return on capital employed because that is a Waterloo for many enterprises. I mean logistics is something I must admit I was little worried when it was embarked upon but how quickly that has come by is remarkable.
I must say that. So hearty congratulations and in, in Rahil Agarwal, you have got a fantastic deputy. The way he handles all the business questions, not nearly financial ones I must compliment. So just wanted to put that body.
Ashwani Gupta
Thank you. And Rahul is not available. Don’t try. No. Thank you very much for your appreciation. And I think you know, last two years the quality of questions you all have asked has really helped us in redrafting in redrafting our disclosures. I know only one thing, that you are our ambassadors in front of investors. So we put ourselves in your shoes that you are in front of investor and trying to convince investors that they should invest and keep the confidence in it. That is right. So if I am you if I am in your shoes what all information I need to convince the investors.
So that’s how the mindset and the cultural change we have done and we talked about Rahul so he originally he’s an ESG guy, he was living in New York and we brought him from New York to India and made him the higher specialist and he’s supported by a good team and now we have Mr. Menon who is the CFO with international experience. So I think we have a good team. And answering to your question of logistics maybe I look at Divij bhai to Divi to explain but nothing has changed. I think one and a half years before the strategy which we talked about we are just executing it little bit fine tuning it.
You would have seen that we have reduced the capex in logistics because we do believe that we can give much more profitable growth with less capex. We are mindful and thoughtful of the capex but one thing which has not changed we said before that we will do better than our peers. Why? Because we know how to maximize the utilization of the assets and that can be only done by talent and technology. We invested in technology, we made our own digital platform. We are running it efficiently and effectively.
The same trust it can do one trip. Now we are getting three trips with the same truck. Definitely the margins are getting tripled so we are not perfect now. I think there are a lot of opportunities we want to grow and keep delivering what we promised.
Priyankar Biswas
Delighted to hear all of that. I was just kind of supplementing the broad observation that such multi geography complicated multi part day to day operations to be done across so many different business lines it can’t be easy and obviously a lot of efforts and lot of intelligent planning and execution is at work to make it appear so smooth. So truly delighted. Just wanted to leave one indirect but in my opinion pertinent observation. You might be aware of these micro intro, you know release of the software, the AI software and I think a lot of legacy technology systems are really vulnerable in terms of being exploited by this software especially energy infrastructure assets, banks.
Many of these assets are really vulnerable because these were developed on open open source software code development and most of these systems have been discussed huge amount of liquid bugs. So I would given the scale and the depth and the complexity of our operations I think our technology in general technology needs to be gone through all over again very carefully.
Ashwani Gupta
Sure sir. So I think we will consider that. Thank you for your feedback and I will personally study it and thank you next time when we are meeting we can have more discussions. Thank you so much for your comments.
Priyankar Biswas
Thank you.
Operator
Thank you. Ladies and gentlemen, in order to ensure that management is able to answer queries from all participants, kindly request your question. Kindly MIT your questions to two at a time. You may join back the queue for follow up questions. We’ll take our next question from the line of Kaudinya Nimagada from Jefferies. Please go ahead.
Koundinya Nimmagadda
Yeah, hi sir. Thanks for the opportunity. Decent set of numbers in challenging environment, especially in the month of March. Two quick questions. So first one a bit on a near term and second one on the Ambition 2031 plan which may take little longer but starting with the near term plans, right? So you did guide for about 11 to 16% kind of revenue growth for FY27. So can you help us understand what are the kind of assumptions that were built in here? Obviously you briefly touched this upon certain assumptions as an answer to one of the previous participants.
So within that, if you can also help us understand how is the current scenario on the ground because we understand that part of March was also supported with transshipment volume. So how is that scenario shifting up currently? If you can throw some color on that, please.
Ashwani Gupta
No, thank you. And you know, same as you, we also don’t have the crystal ball. But you know, our mission has, our business has continued. I think that the main thing which we are doing today is resilience is at the core at our business and LGBT is driving it because every day we have a new thing. More than 93% of the vessels are coming out of the window. So if I keep the same process, I will not be able to entertain any vessel at my port. I can’t complain, right? I have to continue to deliver the volume and I have to adjust and I have to be flexible, adaptable to the changing environment.
Right? We have to choose the crisis before the crisis chooses us. I think that’s what is the new normal and that’s what we are working now. If LBG vessel comes even after u turn from another country, we have to be ready at one o’ clock in the morning to get it faster and faster. So that’s what I would say. So having said that, I will give you a very because you guys are more expert on economics. But what we have done is the minimum range is that we grow exactly as India is growing. In optimistic way.
If India growth goes down because of fuel and so on and so on, we do 1.5 times of India growth. That’s our minimum. That we do believe whatever happens, we will Deliver you that is 1.5 times of India growth. If India is optimistic, which you would have seen today, we have this news of crude, we have news of imported coal and many other attainments, then India growth will be normal. And we can go up to 1.7 times, 1.8 times without any acquisition. So that’s the most optimistic scenario, which we don’t want to commit to you today because nobody has the crystal ball.
So what we have considered in our guidance is the flat. For us, flat is 1.5 times of India growth. Now we can see how the India is growing, but that’s how. We have taken the guidance.
Koundinya Nimmagadda
Okay, got it. Sir, I was trying to understand the kind of volume change that you worked around with. But anyways, so my second question is on the Ambition 2031 or 850 million ton 2030 guidance, right? You know, so if I were to look at it, the implied ask rate on a domestic port side, you know, the volume growth rate is Anyway closer to 14% odd CAGR in comparison, if I were to look at FY21 to 26 odd growth, that was about 13 odd percent. Again there you had some benefits of equation, something like Krishna, but and few other additions as well.
And if I mean this context, I’m just trying to understand how do you intend to achieve this 49% CAGRAND, if I may add.
Ashwani Gupta
No, no, I think you will agree that we can grow 1.5 times without inorganic. So if India is growing at 7%, we can easily do 10 or 11%. Then let’s not forget the fact that we have five years where we have the merger and acquisitions. You also know that many of the many of the positions are for renewal at the other ports before 2031. You should also keep that in mind. It’s not portion of Greenfield, but many of the concessions in our competitive ports will be available. So we will not disappoint you.
That’s what we can say.
Koundinya Nimmagadda
Understood. Sir, if I may ask a smaller question, I mean in the past you did mention that a large part of domestic growth will only be organic. And we do understand that downfield capex expansions the capex intensity is usually lower. And I can also see that, you know, from 653 to 1 billion ton when you mentioned a significant part of that is also coming from technology upgradation. So can you just help us tie this up with the ROC growth part that you gave it? Maybe if you can put some numbers like what is the current gross block to capacity and what is the Incremental capex per gross block.
Maybe. If you can help us understand these details a bit better please.
Rahul Agarwal
So Pandanya, as we have highlighted in our ambition deck, essentially we are looking at almost about 1 percentage point. That is 100 basis point increase in ROC every year all through the next five year time frame. Given how the business is structured, we do anticipate a significant chunk of that coming from domestic ports. To your earlier point, yes, a bulk of it will happen through organic where the capex intensity is actually likely to be in our favor. Given these are expansion of existing ports.
In a scenario like this you should ideally see a continuous increase in domestic ports roti going forward just as what you’ve seen in this particular financial year. We expect to maintain the same trend going forward as well. So that, that’s. That’s the trajectory that we anticipate will pan out over the next half a day.
Koundinya Nimmagadda
Sure. Thanks Rahul. Thanks for the opportunity sir. I’ll fall back in a few moments.
Ashwani Gupta
Yeah, no thank you. I think, I think this is also coming for everyone. You know it’s very important for us to give you our ambition for next 2031. But these are not very perfect mathematics because you know every business is built based on some hypothesis and hypothesis keeps on evolving. I think the important for us is to adapt and align ourselves with the evolving hypothesis. And the speed with which we adapt is the expertise of our APSC side. So we have made an hypothesis. I think in January when we had, in February before the war started when we had.
We never anticipated that this kind of business mix will change. You know we were talking about imported coal will be gone forever. But now imported coal is back. We gone out some other reasons. So what I’m trying to say here is it’s important to have a playground. But then we have to just adjust based on whether it is raining or it is a sunny day or it is snowing or it is something else.
Rahul Agarwal
And just to add to that, if you look at the current base assets we are about 1 lakh crore against which we get a return on Capital about 23%. What we are discussing is an equation of 15,000 crores next year and through this journey of five years is going to be under 1 lakh road. So coming to your point, therefore if we do the decisions at the right time in terms of capacity expansion and acquisition we will still learn the number. Yeah, I hope that makes sense.
Koundinya Nimmagadda
Sure. Got it sir. Thank you very much.
Operator
Thank you. Next question is from the line of Nikhil Ngania from Bernstein. Please Go ahead.
Rahul Agarwal
Hi, thank you for taking my question. My first question is on the point you mentioned on other ports seeing concession closing before 2031. Similarly our largest port as well concession is due at that time. So wanted to check if there is some clarity on the modality on the extension of the concession agreements for ports in Gujarat or otherwise.
Ashwani Gupta
Yeah, I think the talks are going on and the talks are positive. We have to just wait for the conclusion. You will come to know because before us will be there
Rahul Agarwal
Before, before. In terms of timing, we expect this year sometime we should have clarity and it’s like
Ashwani Gupta
We, we control the content of the discussion, but we do, we don’t control, we don’t control the timing. So we are actively engaged in the discussion but we don’t control the timing and the decision.
Rahul Agarwal
Understood? Understood. So no view on that. The second question I had was on the domestic volumes. I understand your perspective on coal and as you rightly said, I mean we also expect coal to come back this year. But even on containers, if you could give us some clarity on why. I mean the growth has been a bit more modest even in Mundra for that part. Is it largely Middle east or what are the reasons for that?
Ashwani Gupta
See, first of all you should see Murphy is only gone is zero because of lpg. So the scrap is zero from Middle East. The paper is zero. So you know, the impact of Middle east is not zero. There is an impact. Then there is an indirect impact which means that 86 or I don’t know, 85 or 90% of the movies closed. So there is zero continuum movement in Malaya. Malaya. So the export from India and what is happening is, you know, look at the freight cost. So one is the Middle east impact which is not much, right?
Which is I don’t know, 2, 3, 4, 5, 6, 7%. We can’t measure it. But it is definitely the impact which is scrap and the paper and limestone and other windows. But the more impact is the indirect impact. Like more view, there is also indirect impact on the exporters delaying their decision to export because of the high freight cost. So this has to reset someday and this they cannot keep on delaying the delay. Look at the inventories of the manufacturers. They are running at the minimum inventory because they have been pushing their decisions forward because they are waiting when things will be gone away and the freight cost will be back to normal.
So that’s why we want to see the quarter one and we want to see how it goes. And then that’s why we have kept it very conservative for the next Year.
Rahul Agarwal
Thank you so much. I mean appreciate those answers. Thank you so much. Those are my questions.
Operator
Thank you. We’ll take our next question from the line of Ajahn Lohare from Nuama Institutional ecg. Please go ahead.
Achal Lohade
Yeah, good evening sir. Thank you for the opportunity. I must congratulate on an exhaustive deck on giving out a lot of information. The question I had though was, you know, if you could just clarify. Sorry, kind of a repetitive question. But 2026 to 2031, you know you’re talking about touching billion tons of cargo. What kind of capex we should work with? You know you spent 15,000 crores in FY26, 12,000 crores to 14,000 crores is the guidance. But how do we see from a 5 year
Ashwani Gupta
20 line number 20 in addition plan 2031 you will find all the details and then in subsequent slide you will see which commodity and which port.
Achal Lohade
This
Rahul Agarwal
Is on slide 22 of our Ambition 31 deck.
Achal Lohade
Okay. I think it was mentioned for domestic, if I’m not wrong, domestic capacity.
Rahul Agarwal
Yeah, yeah,
Ashwani Gupta
Yeah. I was taking note
Achal Lohade
From the full, I mean from a capex perspective at a consolidated level, how should we look at
Rahul Agarwal
That? Slide has the information at the consolidated level.
Achal Lohade
Okay. The second question I had was with respect to marine margins, if you could clarify. Is there any one off out here? Are these normal margins we should work with?
Ashwani Gupta
Yes, this is a business which is driven by the customer contracts and definitely we should not conclude this business depending on just one quarter. I think it is just combination of renewal of the contracts and getting the new vessels in the fleet and the dry docking which is the maintenance. So there is nothing to worry about. Especially with this situation in West Asia we have absolutely no, there has been no fourth measure which we have seen and as you would have seen that refineries are working, our vessels are there.
So we don’t anticipate it. Just question of maybe February or March seasonality which you would have seen.
Achal Lohade
So the annual margin is more sustainable. Margin. Is that what we should work with, sir?
Ashwani Gupta
Yes, yes, yes. Second,
Achal Lohade
Just a quick clarification on the SEZ port development income 891 crores. If you could clarify. What is this? How sustainable is this? And the Mundra port number in one of the slides, does that include this E20 crores? Because the revenue number of 2700 crores looks actually pretty significant increase on a YY basis or a POQ basis.
Rahul Agarwal
So Akshal, if you look at our investor deck page number 19, we’ve been given the Portwise breakdown. So there you have Mundra. Typically, SEB is clubbed under that Mundra line and we’ve carved it out this time around. So you can see the separate margin profile of the report. Right. So that’s there on page 19 of the investor deck. The seg income, as you have seen in the past also. Right. There is no set pattern to the SEC income. It tends to be volatile. It really is a function of the underlying transaction activity that we have at RSV parcels.
And this is what has happened this quarter, but does not necessarily mean that same Q4 volume will repeat in the next quarter. Right. So it has historically been episodic and historically been transactional and it will continue to be the same going forward. So you. I’m not sure extrapolating Q4 will be the best time.
Achal Lohade
Got it. Thanks for those clarifications. And fall back in the Q4. Thank you.
Operator
Thank you. Next question is from the line of asset management. Please go ahead. Hello?
Unidentified Participant
Hello? Hello, can you hear me?
Operator
Yes, please go ahead.
Unidentified Participant
Hi, good evening. So thank you for taking my call and congratulations to Sri Ashwini. And also please send my regards to an old colleague, not of mine, but yours is Robbie as well. I’ve been following her sales for more than 10 years. So well done on improvement. Can I just ask something very specific? I’m on the debt side, I’ll declare that. Thank you for optimizing our capital structure. Now, I see that in the report, the main report, the net debt EBITDA is down to 1.8 or 1.9, depending how you, you know, put the numbers.
Agree with that. Are you then looking to optimize it further? Because I’m thinking that, you know, what would be. That’s the first question. But it’s the same similar question because your answer might encompass what do you think is an optimal structure right now of debt? And now that you bought back a bit here and there, you’ve got some small lines in the front. And if you want to do something in the market in the future. Thank you. Just another two questions. Thank you very much.
Ashwani Gupta
Yeah, thank you. Thank you very much. And if you please see our slide number in Ambition 2031. We have tried to answer that question. Slide number 36. So first objective for us is to invest in the organic Capex, which is between 60 to 70% of our annual operating cash. Slide 26. I have a different version, 60 to 70%. So that’s what we have done. We have found the opportunity. So that’s why we have accelerated the Capex and we have to know Capex has got two things. Number one is money but second is the people who will execute the project.
And we are lucky to have a great team who executes the project like Vijindiram Bundra. And so so that’s our first priority. The second priority is the strategic M and A which brings the top line growth and the bottom line and the bottom line growth. Now I let Krishna to speak on this but to keep net debt to EBITDA is our first objective before we start talking about growth step because we want to use net debt to EBITDA ratio to push our, to push our profitable growth. Reducing the gross debt. You would have seen that we have been doing it systematically but this is after we go through the allocation for the profitable growth.
You would have seen that we have done the dollar buyback because you would have seen that the exchange rate impact is on one side positive for the revenue but not positive for the glass debt. So that’s why we want to keep a balance between mid to long term and slowly and slowly we will of course optimizing, optimizing the the mix of our debt. Right. So maybe Krishna.
Rahul Agarwal
So just to build on what Rashmi shared so very specifically it is the expansion in our existing assets. Second thing is acquisitions and therefore any strategic M and A. And from a guidance perspective we stay with 2.5x and while we do that we will also continue to look for options where you know we can optimize the debt and the cost profile. Yeah so this is, I mean like Asin shared we did a bond buyback which we concluded in the month of March about 199 million and the previous year. So we will look for opportunities both ways but we will hold our guidance so which means 2.5, we will hold it better than that.
That’s our plan for the next five years
Ashwani Gupta
And you know at the end it should give us benefit in terms of financial cost. Right. So if today somebody asked me to buy back bond I will not go back even if I have rupees cash in with me because I may not get the same deal because of the West Asia crisis. So it’s not that I decide because I have decided I will do the dollar buyback. So I will do it. I will see at the market situation I will see how much rupee I can put it in front of dollar buyback, how much ease, how much premium whether you know, you saw in February which we did the buyback 50% of our, our bond buyers kept with them because they believe that APS will do much better than the today’s yield.
So it’s in our roadmap we call it. We talked about Robbie. So we have a capital management plan as a playground but we keep on fine tuning it.
Unidentified Participant
Okay, understood. Thank you very much.
Operator
Thank you. We’ll take our next question from the line of Parash from hsbc. Please go ahead.
Priyankar Biswas
Hi, thank you for taking my question and hi Ashwini. I have two questions and maybe first is follow on from the previous gentleman if you can help us understand, I mean is the two and a half time target, is it a feeling or is it something that you aspire to be to optimally geared your balance sheet. And in that context, over the next five years the buyback will be one of the tools that we will use to deliver our balance sheet. And secondly, with what we have seen with respect to currency depreciation and Indian and US treasury spreads narrowing, how do you see by the end of this decade your currency exposure will look like.
And then I’ll have the second question after that.
Ashwani Gupta
That’s great. I mean the point is we will keep on optimizing and redefining our P and L in a more healthy way. The way the world is evolving. Having said that, our priority will not change. Our priority number one is to invest in the capacity expansion and creating new capacities. Our priority for strategic M and A. And last but not the least, we do believe in creation of wealth in mid to long term for our shareholders. So that’s why for us return on capital employed is much more important than a short term benefit.
That’s why would be the last option. But I don’t think we will talk about it because we do see a lot of opportunities in front of us which we can maximize and execute.
Rahul Agarwal
And just to add to that, the 2.5x is our guidance. That’s the framework that we work with and that’s the best way we feel we can optimize in this journey. I hope that this answers your question.
Priyankar Biswas
Yes, I mean I just wanted to get the feel that 2.5 is like something up to which you are comfortable or you like will actively work to leverage your balance sheet. But I hear what is right.
Ashwani Gupta
Yeah, let me, let me, let me, let me rephrase the answer. See, 2.5 is the ceiling. But even if I go to 3 with the quality asset, I will not have an issue with any agency. Absolutely. Our business is so healthy. I mean 2.5 is just a ceiling which we have put. But for example, if tomorrow I get a $9 billion merger and acquisition. I will go for it because it will change the game of APSC. But then maybe the net that may go to 3.2, 3.3 for 2, 3 tests. As far as I have means to fund it and I have means to provide return on the acquisition which I’m doing.
So I think today I would say we finished with 1.9. But if we see the next year, if we don’t capex, we will do 1 point. How much now? 1.3. So imagine the gap between 2.5 and 1.3 is 1.2. So I can go easily for billions of dollars of inorganic acquisitions. So 2.5 is just the same, but it may change. That’s what I wanted to share with you.
Priyankar Biswas
In terms of currency exposure with respect to your debt, is it like are you trying to drive more towards INR versus dollar or you’re happy with the current exposure?
Ashwani Gupta
See, we don’t have any issue with that to be honest with you. Because you know we get, we have a natural hedge. We take the loan at consolidated, we give it below in our subsidiaries. At the end when we consolidate, it gets knocked off. But also then we can benefit on the revenue. Having said that, having said that, I think if we are getting a better finance in Indian rupee in a longer term, as we did with the local institutions last year, definitely we would like to replace it step by step. But we are not in hurry at the end it should bring a better financial cost.
That is what we want to emphasize.
Priyankar Biswas
That’s very, very clear. And my second question is just like if you can let us know your thinking, how should we think about underlying operating leverage in your businesses? Because when you look at your five year target, it seems like probably logistics business will grow much faster. And that’s why on a headline number, the operating leverage is not very visible. So if you talk about that and how should we think about yield given the mode that your businesses have given the currency depreciation, Is it mid single digit yield improvement on an underlying basis?
Is it a reasonable number? What has been there? What has your track record over the past few years on underlying basis? If you can just share some color.
Ashwani Gupta
So I think so. Very, very good question. Thank you so much. As you have seen last five years, right? I’m saying very broadly, I’m not giving you the accounting statistics but cost per turn for us is almost flat. Revenue per ton is increasing. You can include the rupee depreciation in it and the difference, you will see that it is Our pricing, power and the services we are providing in addition to the only handling charges. So there are three factors in revenue percent increasing. Number one, we are adding services.
Number two, the exchange rate. And the number three is pricing. Exchange rate. And this one more thing, I’ll come back, I forgot there are three things. Improving the revenue per ton and cost per ton is almost flat. When I say almost flat, I’m talking about absolute inflation, right? So this is all offset by productivity. And our target is to keep exactly flat for the next five, six years. How we will do that? By investing in the automation. So if villager is doing 20 with automated cranes, is doing 30 moves per hour, is doing 26, 27 per hour, you know, we will start improving, we will keep on improving the productivity.
If my, you know, I have diesel trucks, I have GSU’s which are diesel replaced by electric. They are 24 by 7. Put up the electric charging stations at our port. As you know, within one and a half year, 100% of our ports will be by renewable energy. We make our own renewable energy. Our renewal energy is competitive. So there are a lot of things which we have planned to keep our cost per ton flat and keep on increasing the revenue per ton. And that’s why we are saying that we are very comfortable even with the inflation, that we will keep 70% and above and above the EBITDA margin.
And at the end goal is to give you better return on capital. That we can only do that if we have a healthy operational margin supported by a utilization of the fixed assets.
Priyankar Biswas
That’s very helpful, thank you and have a great rest of the evening.
Operator
Thank you. Thank you.
Ashwani Gupta
Thank you. Thank you.
Operator
Next question is from the line of Sumit Kishore from Axis Capital. Please go ahead.
Priyankar Biswas
Good evening. I’ll add my compliments to the long list. Already I have a couple of questions. The first one is that it’s been over three weeks since the ceasefire announcement, but the vessel crossovers in the state of Hormutz are still constrained. You know, crystal ball gaze here probably that if the situation remains like this for perhaps another month or two,
Rahul Agarwal
What do the high charter rates mean for exam container volumes or the crude and LNG volumes that are going through that strait? And what has been your experience in April and how does this graduate if we have another few weeks of this disruption? That’s the first question.
Ashwani Gupta
Thank you. I think I’m on Twitter. So I look at Twitter to know what will happen in next one hour. So I can’t say what will happen. But what we are Doing at our end is to make sure that we have adaptability and flexibility. I think what India has seen is absolutely no impact on the crude. There is a coastal shipment which is coming on the crude. There is now this new route which is open. So crude will continue to grow. Continue to grow or continue to be supplied. LPG is something which is a question.
But LPG will soon slowly and slowly will be replaced by PNG and the electricity. Electricity is again coal. So I would say that imported coal or coastal coal, everything will be replacing in terms of Cargo drop in LPG. Anyhow, LNG for us was just 6,7 million metric ton out of 500. It doesn’t shrink down a little. Whether LNG is 0 or LNG doubles. And then I would say definitely the impact which I would say on the commodities like or, you know, which comes to Navajiva and Navashiva to Tum. So that’s why you would have seen in the month of March we had a drop in Tum that was mainly because of scrap and paper which is imported.
These are the commodities which are not, to be honest. Sorry for that. These are not very strategic mid to long term businesses. Right. They are very seasonal, like iron ore. So we must not be dependent on that. So that’s why we have opened up. We have opened up the new businesses. You would have seen that Triple E no is growing which has the least impact of these commodities because we have more industrial goods. So I think slowly and slowly we have to adjust to the new normal. Let’s not keep waiting.
That situation will be better tomorrow. That’s what I can say today.
Priyankar Biswas
And exim container volume will also find another route, longer route and ultimately the volumes stabilize.
Ashwani Gupta
This is what is happening now, even today also.
Priyankar Biswas
Yes,
Ashwani Gupta
It has increased because they’re not following the normal route or they have more waiting time or they have something else or they have a shorter wound. They have shorter wounds. In Binja we have. We have shorter wound vessels, but more vessels. So definitely our efficiency is getting impacted. But that’s life. Let’s adjust our life to the new normal.
Priyankar Biswas
Very clear. The second question is on cash flow from operations. I couldn’t find any comment in the presentation or the press release. So I think we are targeting around 180 billion plus. We have done a EBITDA of about 228 billion plus. How has the CFO behaved and with the growth numbers that we are seeing or targeting for the next financial year, does that follow suit in terms of the CFO to the EBITDA? To CFO conversion.
Ashwani Gupta
So
Rahul Agarwal
If you see almost 85, 90% of our cash flow comes through from EBITDA. So I think that won’t change. That profile remains the same and it will continue. Yeah.
Priyankar Biswas
Okay. So this time around also in a full financial year it would have been 85% of E number.
Rahul Agarwal
Absolutely. We have 20,312 here. Yeah,
Priyankar Biswas
20,300.
Rahul Agarwal
Others will also see. So it’s on. If you look at. In
Ashwani Gupta
The ambition plan slide 22 of the ambition plan has the. Has that information.
Priyankar Biswas
Okay. Okay. Just one clarification.
Ashwani Gupta
Now we made it very simple so that you don’t have to go through our line by line P so you know that you can see the transition from revenue till
Priyankar Biswas
Perfect. Just one clarification. I mean because the trial runs have happened now at JNPT both upstream and downstream for dfc what is holding back the final commissioning or in case you have any sense. Now
Ashwani Gupta
I am not the spokesperson but only thing I know that it has not started.
Priyankar Biswas
Got it.
Ashwani Gupta
Even if it starts. Even if it starts as Concur MD Mr. Shekharup is said officially last time in his analyst call that still there are two talking points. So let’s see that when and how it will be effective. But even if it is effective, the catchment area of JNPT and catchment area of ours are totally different. Second, we still have the advantage of two slats on the rail post. So definitely getting JPG connected with DFC will improve the delivery to their customers but will have no impact on our business.
That’s what we said last time.
Alok Deora
Very clear. Thank you and wish you all the very best.
Ashwani Gupta
Thank you.
Operator
Thank you. Next question is from the line of Ketan Jain from Avendus. Please go ahead. Yes, please go ahead
Rahul Agarwal
For the opportunity. First question is are our ports benefiting from some realignment of shipping line services due to the West Asia conflict? And if yes, then by how much?
Ashwani Gupta
So we cannot see. We cannot. It’s difficult to quantify it. But for sure they are getting benefited. But they are also. At least Mundra is getting benefited. But Mundra is also getting impacted. But for sure Vizingham is getting benefited in terms of. In terms of volume. That’s why we are. We are accelerating the vigilant phase two. And soon we will also start working on the Exim cargo for Villainjam because there’s a huge potential in the catchment area of Virginia. For example, we already, you know, you have seen that already have approval for the rail connection and the highway connection.
I don’t know how Many years it will take, but at least there are approvals. So there is a huge potential. So we are accelerating the investment in Besinger for phase two and a couple of more. So these two will really be great. Mudra little bit complex because it’s mix of everything. So Mundra is benefiting, but Mundra is also impacted.
Rahul Agarwal
Understood. So Mundra continuous growth was at around 4% versus JNPT at 12%. So as you mentioned, the primary reason is because of modulus.
Ashwani Gupta
See, I will give you. See, I don’t want to be very optimistic, let me tell you. And I think it’s very important to understand how the JMPT works, right? They have the capacity, capacity more than they require. We have the capacity, what we require. Now what happens after this disturbance? More than 90% of the vessels are coming out of the window. I will try to be flexible, I will try to be adaptable. But they have a plane, they have an empty playground and with warm welcome they are accepting every vessel.
So definitely they will have a better advantage in terms of that. So now the question is growing at what cost and what profit? I think that is also the second question which we should ask. And you know, as I said before, we are waiting for our CP5 to be open, but again we will do only the meaningful cargo which is bringing high utilization. Of course we can do this service which we are doing because that is for the country. But at the end I would say that in addition to the percentage growth of volume, it’s also important to see what is the realization, what is the margin each port is creating.
Rahul Agarwal
Understood? Understood, sir, that answers the question. In our international volume of around 22 million tons, how much is NQXT contributed in this? Roughly about 11 million.
Priyankar Biswas
And sir, also if you could split the rest in Colombo, Haifa and Tanzania, how much volume?
Ashwani Gupta
Yes, maximum growth is coming from Tanzania. From Colombo.
Rahul Agarwal
So Tanzania roughly does about 1 1.1 NLP a month. Israel is running a trend number of about 0.74 between 0.7 to 0.9amonth. And Colombo does about 120 to 125,000 CE a month. That’s the.
Priyankar Biswas
So if you can give us the number for the fourth quarter. You shared this the same last quarter as well
Rahul Agarwal
11. Nowadays your NCXT you will have a little over 3 million coming from Tanzania, approximately 2.5 to 2.6 coming from the given and the balance is
Ketan Jain
Understood. Just. Just a last question on the ROC of logistics. What would be the capital employed in logistics for this roc?
Rahul Agarwal
You’re asking for Logistics capital employed in next five years. So the current capital
Ashwani Gupta
Employed, the current. Okay, Those are my questions. Thank you.
Rahul Agarwal
Thank you.
Pulkit Patni
Sure. Can you hear me loud and clear, sir?
Rahul Agarwal
Yeah, we can hear you.
Pulkit Patni
Okay, thank you for taking my question. So my first question is, is in your estimation of the 850 million domestic cargo, what is the rough estimate on what you will be doing in terms of coastal shipping by then? If you could share any breakdown there.
Ashwani Gupta
Yeah, I mean it’s difficult to estimate because as I said before, all of a sudden we have growth in imported coal and coastal. But today I would say that all India coastal is increasing roughly at 5% when EXIM went down by 3.5. So if I look at the energy, energy, energy growth, I would say that still coastal coal will keep on increasing between 6 to 7%.
Pulkit Patni
Okay, that’s useful, sir. So my second question is over the next five years we are estimating about 1.2, $1.3 billion of capex in marine. Again if you could outline what is the medium term plan there? Are we looking at doing more in other countries, globally? Like just some thought process on how we look at our marine business outside of what we are doing for our captive usage.
Rahul Agarwal
Okay, and now just clarify one point before Shania responds. The marine business or a marine vertical does not include the captive ports. Okay, the ports, the tugs that work in our own ports for customers are consolidated under domestic ports. Marine is entirely a third party business for us. So all vessels under marine vertical are deployed exclusively for third party customers. So just one quick hygiene point.
Ashwani Gupta
So I think building on that, this is what we did. Now we finished roughly 8% of our business which is Mary now in terms of revenue roughly. And this is the consequence of the strategy which we did in India. We have 77% market share on the near term. Then we acquired astronauts with more than 20 vessels at that time. Those vessels are offshore tugs, sorry, offshore vessels used as ankler handlers, barges, but mainly the work boats. Work boats have an advantage of having mid to long term customer contracts but also not as much cyclic to the trade as compared to the shipping business.
So very sustainable, robust, consistent business. Right. Because if our offshore vessel is deployed in oil and gas refinery in Abu Dhabi, it has a mid to long term contract. Nothing to do with the shipping trade going up, going down. Right. So that is the reason we went into, we got into the offshore business. Now when we bought Astro we have like more than now. We have more than 50 vessels. We have Middle east, we have North Africa, we have West Africa and Now we are heading into Europe so very soon you will hear that our vessels are deployed in Europe which means learning from West Asia crisis.
We are redefining our offshore marine strategy to also include the Mediterranean Sea in our offshore vessel deployment. And this is part of corporate risk management.
Pulkit Patni
Sure sir, since you’ve got like the businesses significantly larger now and obviously there’s already so much disclosure but would love to get more color on our marine plans and how the revenue profile there moves. So my last question is again on capex for others we’re looking at 6,000 to 8,000 crore in technology decarbonization and others which also is pretty significant. Any again rough cut breakdown of what this would entail like in terms of terms of decarbonisation and other capex, what exactly are we looking at over the next five years?
Rahul Agarwal
Pulpit it’s a combination of multiple line items. So let’s say as you know we have a public commitment for net zero 2040 and we recently signed up for TNSP as a biodiversity reporting framework where we have a guidance for 2050 net positive biodiversity. So these initiatives typically entail CAPEX which is in the nature of higher renewable and electricity. It could be the nature of higher sequestration activity, more plantation, et cetera. It will also typically entail active reduction of our emission footprint which means that we will have substantially higher volume of battery operated than our premises.
We will have a very large part of our our equipment running on electricity as opposed to diesel and things like that. So all of that is going to contribute significantly to the decarbonization plan and the biodiversity plan that we have over the next half a decade or so. In addition, technology is an ongoing initiative. You have seen various agenda items like strategic command center that we demonstrated at our last investor day. And on the same line there are multiple number of internal initiatives that are being taken from a technology standpoint to be able to set up efficiency level.
So that’s also going to be a very significant component. But it’s a healthy mix between tech upgrades, new technology adoption, AI adoption and the fairly extensive decarbonization plans that we have.
Ashwani Gupta
So sure, you know sustainability is at our core, right? Core of the business. And sustainability for us is not cost plus, it’s not regulation, it’s not compliance, it’s not disclosure. If you look at slide number 31 of our Ambition 2031 you will see that all the investments which we are doing in sustainability has got an economical benefit. So if I am investing in the electric trucks in Munda, that is not only for Environment that is not only for esg, it is bringing me economical benefit. That’s why I’m investing.
And also in addition it is contribution to the environment. The second if I’m investing on the automation, it is bringing a better productivity of the grain, better productivity of the yard, better productivity of blah blah, blah and the. So for me technology is not a feature list of an equipment. Technology for me is a technology which brings economical benefit. Not only the decarbonisation but also the green port revenues. We know that as for maritime world regulation, globally container vessels will have to adapt to the alternative field.
Now in India do we have the facilities for the shore power for example, you know, and we are now making the provisions for the shore power. Because we know after two and a half years when international vessels will come to Mundra, they will need the shore power. And that will become our competitiveness as compared to our competition. Now why we will be competitive? A Because we are thinking and investing in advance. B Our shore power will be powered by the renewable energy which is affordable than the fossil energy.
And that side will bring the economical benefit. So for us, investment in decarbonization and technology is to bring better productivity and to create new revenue opportunities.
Pulkit Patni
Sal, can I take the liberty of asking one last question? Yes. Yeah, if I mean there were news flow around the group possibly looking at shipbuilding opportunity. If anything happens there on Mundra, is it fair to assume it will happen under Adani Ports and. Or would it be a separate.
Ashwani Gupta
You ask her ship building and then in next quarter you will ask me what is your return on capital employed? What? I will answer you man.
Pulkit Patni
No sir, every business requires seeding time. So we would not ask you that initially.
Ashwani Gupta
But I just
Pulkit Patni
Want to understand.
Ashwani Gupta
Give me update. You will not wait for 18 years. I don’t think that’s our competency. Our competency is to build the infrastructure ecosystem and to run it efficiently and effectively. That’s our competency. Our competency is merchant building. If somebody comes and want to print the ship at our Munda port, we have the easy approval we will give it. We will very happy because it is good for country. But do we really want to ourselves get into the shipbuilding? I don’t think so. That’s not our competence.
Pulkit Patni
Perfect sir. Thank you so much for that answer.
Operator
Thank you. Next question is from the line of Vivek from MK Global. Please go ahead.
Ketan Jain
Sure. Thank you. Thank you for the opportunity and congratulations on a good set of results. I just have a couple of questions. One on the resumption of Tata Power’s operations. So with respect to that, what can we expect in terms of volume growth at the Mundra plant?
Ashwani Gupta
Where are you located? Mumbai.
Ketan Jain
Yes.
Ashwani Gupta
Yeah. So you see the heat, right?
Ketan Jain
They have to
Ashwani Gupta
Run at peak capacity. They have to run at maximum capacity.
Ketan Jain
Right.
Ashwani Gupta
And I don’t think, I think we have a weaker monsoon this year. So last year we faced the issue because there was a delayed monsoon, there was a heavy monsoon and there was excessive renewal energy available because of hydro. If you remember we had that discussion. But this year I think we have this crisis where trying to be replaced by electricity. Then we have this peak summers and we also have a weaker monsoon. So we must have tailwind over there. I don’t know how much the Tata Power has been asked to run.
Full fledge.
Ketan Jain
Sure. So just to understand in terms of volumes like what percentage of volumes from Tata Power can we expect to go to flow through the. To flow through our ports?
Rahul Agarwal
So in our previous transcripts we have identified the volume loss that. That we’ve had in FY26 on account of CGPL. So you might just want to refer to that. I refrain from commenting on a specific volume from one particular customer on this call. But in the past we have given references to the volume that we had in coal in this account.
Ketan Jain
Sure. Thank you. Secondly, in terms of Visingam expansion, so what we see is we have a plan in place to expand and the capacity from 1.6 million TEUs to 5.7 million by FY29. Will we expect the expanded capacity to be operational on a staggered basis or will it be all at once as of FY29?
Ashwani Gupta
Step by step? Yeah. We call it phase two. But even inside phase two we have four steps.
Ketan Jain
Okay,
Ashwani Gupta
But don’t ask me. So we can’t disclose the detailed master schedule to external world, but that’s our competitiveness.
Ketan Jain
Sure. Okay. Yeah, that’s it from my end. Thank you.
Ashwani Gupta
Thank you. I appreciate.
Operator
Thank you. Next question is from the line of Nidhi Shah from ICICI Security. Please go ahead.
Priyankar Biswas
Thank you so much for taking my question. I wanted to ask what was the volume revenue EBITDA
Operator
For the N2XE terminal that was recently added in our control.
Rahul Agarwal
So ma’, am, we have not separately disclosed that but I suggest you please take a look at the presentation we uploaded when we made the announcement last year in April that has the detailed financials on of Australia. So that will give you a good sense of what numbers have populated into. Into this quarter, this particular quarter.
Operator
All right. And secondly in. In mundra you mentioned earlier in the year because of Tata we had faced that issue but specifically this quarter as well, we’re seeing that poll at Mundra is slightly lower and all across the board as well. So do we expect it to resolve in Q1 or do you think this will take some more time for the volumes to come back up?
Ashwani Gupta
Where you are seeing? Where you are seeing Your app is not yet finished.
Rahul Agarwal
Sorry, we did not completely get your question. You can just repeat
Operator
So in, in the, in the annex for this for Q4 presentation it is mentioned that the coal in port, basically the coal at Mundra is lower than Q4FY25, significantly lower. So. And poll volumes across all ports in Q4, FY26 have been lower than the base year. So do we expect that the coal volumes will come up in Q1?
Ashwani Gupta
Sorry Jenna, your question is great. I think Rahul will make a separate call with you because I don’t think we should look at coal as a coal. You have three kinds of coal. You have coking coal where they have increased more than 7.5%. Then we have the coastal coal where we have increased 5.1% and obviously there is an imported coal which is reduced but that is in line with the country’s strategic direction. So I think please have an offline discussion with Rahul. We will give you all the data but at the end coal is increasing.
The coal which is increasing is in the strategic direction of the country which is more coastal coal and more coking coal because to support the steel production.
Operator
And lastly logistics volumes are not up significantly. But we’re seeing that the EBITDA and the revenue per ton on that is growing significantly. So, so what is the strategy behind that?
Ashwani Gupta
That strategy is very simple. We wanted to demonstrate that we can give you double digit return on capital employed. So we adjusted our business mix to give you maximum return and build the confidence in you and now we will push the volume.
Operator
All right, thank you so much. Thank you.
Ashwani Gupta
That was the last
Operator
Question. Sir, over to you for closing moment.
Rahul Agarwal
Yeah, so. So we’ll just take one. So moderator just allow Rashi please, he has one last question and then
Operator
Please go ahead.
Priyankar Biswas
Yes, thank you for this opportunity. So my question is. So if I see the your port India ports EBITDA performance that that’s a good growth of about 10% whereas volumes have been kind of flat on India port volumes. So is that because a part of your revenue is in dollars and you are getting a currency benefit here or the other way to think of it? If we didn’t have this currency movement. What would your EBITDA per ton improvement have been in this quarter?
Rahul Agarwal
You’re right in that the realization is the revenue growth is ahead of the volume growth. Regulation is correct. So it’s not just currency. There’s a combination of factors. It includes currency. There is also the component of the pricing changes that we take when products categorize. And it is also a function of product mix, container being the fastest growing commodity and marine growing alongside it. Because these are dollar linked commodities naturally benefit us as the rupee depreciates. Visa.
Visa. Right. So these are. It’s not just one item, but it’s a combination of all of these three that is working to our advantage in particular.
Priyankar Biswas
Thanks a lot for accommodating me. So how much of your revenue, a broad number is in dollars? Is it like 30%, 20%? How much would be in dollars?
Rahul Agarwal
So if you look at our charcoal, roughly about 40, 45% of our cardboard is containers. So that’s. And our hardware income is dollar linked.
Priyankar Biswas
Thank you. Thanks a lot.
Operator
Thank you.
Ashwani Gupta
Any
Operator
Closing comments, sir?
Ashwani Gupta
No, I think first of all I really want to say thank you for your continued confidence in aps. And I want to thank you for very thoughtful questions and the feedback and advices which help us in improving quarter and quarter in terms of our communication, in terms of our engagement, in terms of our disclosure that has helped us in preparing this very comprehensive, very detailed and very simple ambition. 2031 though we see uncertainties, but as I said before, our fundamentals are in place and our strength, which is scale but which is integrated, right, makes us different than others whether it is port or logistics or marine.
Even the ports across 11,000 km, even the 12 ICDs, trucking, rail, warehousing, everything is integrated. So we have that advantage of having scale plus integration. And scale plus integration is run by capability and the capacity to run it in the most efficient way. And that is demonstrated in our very strong top line and bottom line growth. And this all is coupled with the India growth story and as well as the international growth story which is coming from iMac and China plus one and swap and so on.
So with that story in mind, we keep the target of growing at CAGR of 18% to 19%. In good times like last year we could grow up to 25%. But still, you know, we want to keep our foot on the ground and keep delivering between 18 to 19% CAGR moving forward for next five years. And every quarter we meet and we demonstrate that our execution of the strategy is working the perfect way. So thank you once again and look forward to see you next time.
Operator
Thank you. On behalf of JM Financial Institution securities limited that concludes this conference. Thank you for joining us. And you may now disconnect your line.
Ashwani Gupta
Thank you, everyone. Thank you.