Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
JSW Infrastructure Limited (NSE: JSWINFRA) Q3 2026 Earnings Call dated Jan. 16, 2026
Corporate Participants:
Rinkesh Roy — Joint Managing Director & Chief Executive Officer
Jambunathan Nagarajan — Chief Financial Officer
Analysts:
Alok Deora — Analyst
Sumit Kishore — Analyst
Unidentified Participant
Priyankar Biswas — Analyst
Achal Lohade — Analyst
Ketan Jain — Analyst
Aritra Banerjee — Analyst
Mohit Kumar — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to JSW Infrastructure Limited Q3FY26 earnings conference call hosted by Motilal Oswal Financial Services 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 this 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. Alok Devara from Otiral Aswal Financial Services. Thank you and over to you sir.
Alok Deora — Analyst
Thank you and good evening everyone and welcome to the 3QFY 26 earnings call of JSW Infra. We have with us today Mr. Rinkesh Roy, Joint Managing Director and CEO Mr. Lalit Singh, we strategic advisor and board member, Mr. Nagarajan J, Chief Financial Officer and Mr. Vishesh Panchananda, Head of Investor Relations. I would now hand over the call to the management to provide some opening remarks and then we can proceed to the Q and A. Thank you. And over to you sir.
Rinkesh Roy — Joint Managing Director & Chief Executive Officer
Thank you Alok A Happy New Year and Happy Matar, Sankranti and Pongal to you all and your families. Good evening and thank you all for joining Our earnings call for the quarter and nine months ended 31 December. The global economy remains in a phase of gradual adjustment shaped by uneven growth across regions, stabilizing monetary conditions and ongoing geopolitical uncertainties. Global trade continues to be a key engine of economic activity, supply chain and customer diversification gaining importance in the global trade.
India’s economic environment remained resilient, supported by strong domestic consumption and sustained government spending. Exceptionally low inflation with CPI in the vicinity of 1% provided room for monetary easing enabling the Reserve bank of India to further cut the repo rate by 25bps in December while maintaining a neutral stance to balance growth and stability. On the rail cargo side, different initiatives like the liberalized Special Freight Train Operator framework are encouraging private participation and specialized wagon investments.
These schemes are already showing traction with new operational flexibility introduced under LSFTO to optimize steel and bulk cargo movements. Indian railway freight performance continues to strengthen India’s economic backbone with cumulative loading this year crossing the 1 billion ton mark in November 25th at GSW Infrastructure. This quarter we strengthened our presence across both business segments, ports and logistics. In the ports business, we have entered into an agreement with Mineral Development Oman to develop a greenfield port with a capacity of 27 million tonnes per annum backed by an investment of USD 419 million.
Additionally, I am pleased to share that we have successfully completed construction at the JNPA Liquid Terminal and a final commissioning certificate is awaited from the authorities regarding our ongoing projects. The 302 kilometre iron ore slurry pipeline continues to progress steadily and remains on schedule. To date, 227km of welding and 205km of pipeline lowering have been completed. One of the key long lead items, the electrical pump, has also been delivered to site. The project is on track for completion by March 27.
Once operational, it will significantly improve the efficiency and reliability of iron ore transportation. Meanwhile, the construction activities at the Jatadhar port are in full swing with pile foundation work completed by 40% and 5.6 million cubic meters of dredging being completed with a work completion target of March 27th. As communicated earlier, our operations and maintenance contracts in the UAE at the ports of Fujairah and Dibba have delivered strong operational performance. Notably, the port of Fujairah has exceeded its minimum cargo volume commitments reflecting strong throughput and efficient handling.
This outperformance resulted us to benefit from a share in the profitability generated from the incremental cargo of 0.8 million tons, further enhancing the commercial value of our engagement at the port. In our logistics business, we have expanded into the rail rate segment by acquiring 100% equity in three entities from the group at an enterprise value of Rupees 1,212 crores. This acquisition provides immediate access to Indian Railways, GPWIS and LSFTO schemes along with long term licenses. Under these programs, the target entities hold a fleet of 22 RICS as of December 25th with three additional rigs to be delivered this quarter taking our total count to 25 rakes.
We expect the closure of the acquisition shortly. Additionally, our subsidiary Navkar Corp. Has received a letter of acceptance for the development of a Gati Shakti multimodal terminal on railway land at Somatan At Kurtini which is near Bellari, first container rake was flagged off marking the first private rail terminal in the region at GCT or Konam. The setting up of railway track work is 90% completed and we expect the rail operations to commence in Q4 of FY26. Overall, JSW Infrastructure handled 90 million tons of cargo during the period April to December 25, marking a 5% year on year growth.
The growth was driven by strong performance at Southwest Port, Dharampar Port and interim operations from JNPA and Tuticorant, while the growth was offset by subdued cargo volumes at the Paradeep iron ore terminal which saw a decline of approximately 3.9 million tonnes due to challenging macroeconomic conditions in the seaborne iron ore export market. However, the recent monthly trends in Paradeep iron ore are encouraging. With monthly volumes of 0.8 million in November and 1 million in December, logistics segment, which is mainly NAFTA delivered a standout performance during the period April to December FY26 marked by a strong operational volumes.
The total exempt Cargo volumes reached 245,000 Tuscan representing a robust 23% y on y growth and domestic cargo volume stood at 1.07 million tonnes, up 35% compared to the same period last year. The operating EBITDA for the nine months stood at 78 crores overall. On a consolidated basis, our operating revenue was Rupees 3839 crores for the nine months of FY26 representing a 20% Y on Y growth, operating EBITDA for the period stood at 1834 crores marking a 13% increase while net profit reached 1123 crores reflecting a strong growth of 11%.
Following a detailed review of the progress achieved across our port expansion and capacity enhancement projects and in light of the strong and consistent performance delivered by the logistics segment, we have gained improved visibility into a medium term growth trajectory. In parallel, we have been cognizant of the feedback from many of you regarding growth outlook for FY27 and FY28 with FY28 representing a landmark year in our expansion journey. Taking this external feedback together with our internal assessments and operating momentum, we are pleased to formally articulate our operating revenue and EBITDA guidances for FY27 and FY28 reflecting disciplined execution and a continued focus on value accretive growth.
We are targeting a consolidated revenue of Rupees 5,400 crores and operating EBITDA of Rupees 2,600 crores for FY 2026. Building on this FY26 base, we anticipate EBITDA growth of approximately 15% in FY27 and expect it to double approximately by FY28. This outlook reflects our confidence in strong operational performance, clear visibility of growth projects in the port business and our ability to transition rolling assets from CAPEX to EBITDA contribution in the logistics sector segment. With this, let me hand over to Mr.
Nagarajan to take you through the financials and other details.
Jambunathan Nagarajan — Chief Financial Officer
Thank you sir and good evening everybody. Let me first talk about our port business in Q3FY26 the company handled cargo volume of 31.7 million tons as compared to 29.4 million tonnes for the quarter ended December 24. The 8% volume jump was primarily driven by strong performance act Goa, Dharamtar Port and also overseas operations. Additionally, interim operations at Tuticoring Terminal and JNPA Liquid Terminal contributed positively. Despite these strong contributions from key ports and terminals, growth was impacted by lower volumes at our Paradeep ports which is the iron ore and the coal terminals.
Third party cargo went up to 15.7 million tons from 14.3 million tons representing a 10% growth and the share of third party volume stood at 50% versus 49 a year ago. The growth in cargo volume and the change in volume mix resulted in a 9.9% YoY increase in operational revenue which stood at 11. 64 crore in Q3 FY26. Operational EBITDA for the port segment was at 611 crores up from 570 crores and increased by 7% on the back of strong operational performance at both Dharamsar and Southwest ports. Navkar Corporation delivered a strong operational financial results in Q3FY26.
Total EXIM cargo volumes reached 85,000 TUs representing a jump of 19 percentage YoY basis Domestic cargo volumes stood at 4,5000 tonnes up 45% compared to same period last year. Revenue from operations for Navkar rose to 186 crores while operating EBITDA jumped to 33 crores showing substantial improvement while net profit increased to 9 crores a significant turnaround from a loss of 11 crore in previous year. Total consolidated operating revenue for the company stood at 1350 crore and total operating EBITDA stood at 644 crores reflecting a YoY growth of 14% and 10% respectively.
Consolidated depreciation was at 164 crore versus 138 crore previous year increase being primarily on account of consolidation of Navkar Kaur and capitalization of our covered shed project at SWPL Goa. Finance cost was at 79 crores in the current quarter as compared to 97 crores respectively in the quarter ended December due to retirement of a commercial paper of thousand crores. During the quarter ended December 25th we recognized a forex loss of 14 crores primarily driven by the fluctuation USD INR exchange rate.
This is a non cash accounting adjustment in accordance with India’s 109. In contrast the same quarter last year recorded a loss of 159 crores, almost 32 crores. We have also transferred to OCI As a Result, PBT for Q3FY26 stood at 446 crores compared to 276 crores in Q3 showing an increase of 62% YoY. So effective tax rate for Q3 stood at 17% as compared to a tax credit of 56 crores in the same period last year. The tax rate was due to recognition of credits related to ESOPs in Q3 last year. PAT for the current quarter increased by 9% at 365 crores as compared to 336 crores in the same period last year.
Driven by higher ebitda, the aggregate financial commitment across all growth projects encompassing awarded work orders and procurement of materials stood at approximately 4,000 crores and a capex spend of 1,383 crores up to December 2025. As of December 25, we have a net debt of 1888 crore with a net debt to operating EBITDA of 0.76 and one of the strongest balance sheet in the sector. This coupled with steadily increasing annual cash flows from the current asset base, we are well positioned to pursue a growth plan to enhance our present cargo handling capacity to 400 million tonnes and parallelly grow our logistic business.
With this, I request the operator to open the line for Q and A. Thank you.
Questions and Answers:
Operator
Sir. Shall we open the floor for questions? Thank you very much. Ladies and gentlemen, we’ll now begin with the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles participants. You may press Star and one to ask a question.
First question is from Sumit Kishore from Access Capital. Please go ahead.
Sumit Kishore
Good evening. Good to see that the commissioning timelines for your major port projects are largely unchanged. Could you help us with the capex in the nine month period split into ports and logistics. And what is your guidance for FY26? You had mentioned about 55 billion rupees on the previous call. Also, I see that you are giving guidance for 2026-28 for the port and logistics business on revenue EBITDA. It will be great if you can spell out your CAPEX targets for FY27 and 28 across ports and logistics.
That’ll be my first question.
Jambunathan Nagarajan
Yeah. So for FY26 we expect a spend of 3500 crores. Primarily 2000 crores on the port side and 1500 crores on the logistics space. In logistics we expect a closure of the transaction which we announced in December in this quarter. So that itself will be at 100 crore outflow. So 3500 crores spent for FY26 and FY27 to 28. Both the years put together we are seeing that port spend will be around 13,000 crores and logistics spend will be 3,500 crores.
Sumit Kishore
Okay, your FY26 target for capex seems to have come up by about 20 billion rupees versus earlier guidance. It was 40 billion rupees for ports and 15 billion for logistics. Is there any specific reason for the port CAPEX to have reduced.
Jambunathan Nagarajan
SO orders? The purchase orders have been raised as I have already highlighted. It is just that the payout has been deferred because we have gone for some bank guarantees and LC’s and all so payouts we have deferred to the next two years. But the purchase orders are raising of purchase orders are on track.
Unidentified Participant
And just to add on the logistics segment, we have actually been better than the guidance because there is an acquisition into place.
Sumit Kishore
Second question is, you know you had reduced your volume growth guidance to 8 to 10%. The impact on paradip coal and iron ore is well noted. But now is the revised target lower because the fourth quarter ask seems to be quite high with even 8% growth.
Rinkesh Roy
So we’ll be looking at, you know, a reasonable target of around 123 million tons for this year and for the coming year it would be in the range of 6 to 7%. And then on you will have a massive ramp up to 165 to 175 million tons.
Sumit Kishore
FY28,
Rinkesh Roy
Let’s say 528. Correct.
Sumit Kishore
Okay. Also one last question. I know I’ve already asked two on the logistics side of your revenue target for FY27 of 18.2 billion rupees. Now with the acquisition from the group that you have done of 12.2 billion enterprise value and your growth from the MMLPs that you are developing, what kind of number is already in, you know, sort of visible from what you have in your business so far. And so you know what is of the 3x jump that we are looking at from FY26 to 27, where is it that additional visibility would be required or would come through beyond what you have, what you have told us?
Rinkesh Roy
So as you have seen, we did a remarkable turnaround in Navkar. So what was you know earlier when we took over the company it was doing around 3 crore per month EBITDA. We have now gone up to around 13 crores and that journey is still ongoing. So for FY27 we are looking at broadly in the range of 450 to 500 EBITDA for Navkar and between 750 for the entire logistics business and 750 to 800 for the entire logistics business in FY28.
Sumit Kishore
Yeah. So what I was asking is that how much of this EBITDA projection is from what you already have in in terms of the real businesses acquired from the group Navkar or is some other acquisition or nonlinear growth required to reach this Target?
Jambunathan Nagarajan
Yeah. So 160 crores is what we are expecting for FY27 from Nauka taking a run rate of 40 crores per quarter. And already we have guided the market. That 150 crores we will be getting on the 25 rakes which we will be buying from JSW Shipping. So that takes it to 310. And we are placing orders for additional rakes because that also is something which we have guided the market that overall we will be having 67 LSFTO stroke GPWS rakes. So as a part of that story incremental orders will be placed for LSFTO rigs and container rigs.
So all which will commence from February onwards. Placement of orders, all these rigs. Obviously the delivery will start by say August stroke September. So all in put together we can expect this EBITDA is what we have guided.
Sumit Kishore
Got it. Thank you. And we show all the
Priyankar Biswas
Best.
Operator
Thank you. Next question is from Priyankar Biswas from GM Financial. Please go ahead.
Priyankar Biswas
Thanks for the opportunity sir. And of course I would say quite a good turnaround in Navkar in particular. My question actually builds on, let’s say Sumit’s question earlier. Since you have given us more or less a roadmap like 700 crores of EBITDA in logistics, can you further elaborate like how does this 700 crores goes to, let’s say the eventual target of 2000 crores by FY30. Like what sort of contributions will come from the GCTS, the containers? If you can share some more details like GCT Economics, how does it work?
If you can slide over it
Rinkesh Roy
Broadly. If you look at the entire logistics business, there are three main components. One are terminals and number two is the rakes and number three are the physical containers. So these are the three main components which drive the logistics business. So in each of the three components, we have fixed a target ratio so that we end up broadly having around 25 terminals across India in the next three years. Similarly, the rake fleet, we’re looking at upping it over 200 plus including lsfto and container rakes and the container physical containers that we’re looking at upping it to close to 8,000 to 10,000 acquisition over the next three years to get into that EBITDA number.
So as and when we have been applying and getting all these terminals through bids and acquiring something, so these numbers are holding true and we are finding that we’ll be able comfortably be able to achieve this target.
Priyankar Biswas
If I may just ask, with 25 terminals, let’s say when you put it in place by FY29, what sort of EBITDA we should be able to make in the terminal space itself?
Jambunathan Nagarajan
So Priyanka, so roughly just to give a breakup, so 50 container rigs, we are targeting a 200 crores EBITDA. From FY28 perspective, I’m seeing 50 container rigs, container rigs and 50 lsfto rigs. We are looking at around 275 crores of EBITDA. Just a breakup I’m giving. So that 200 plus 275 stands at 475. Now car already will cloak around 180 crores in FY28. Plus the terminals like Kurtini and a few more which we have, that will all take us to 700 crores. And these are all terminals which are growing up and we’ll be having around six to seven of them which will all be in the expansion phase, gradual ramp up phase is what I can say.
Priyankar Biswas
Okay,
Jambunathan Nagarajan
So the drivers which for the first two years will be coming from this container rigs and the LSFT rigs because the lead time is just a few months. Whereas the ICDs and the CFS, the drivers, the driver EBITDA driver will be coming more in FC FY 29 and 30 because by that time the construction would have happened and the contributions and EBITDA ramp up will begin.
Priyankar Biswas
Okay, okay, that’s very clear. So broadly it would mean like in a steady state, maybe almost close to, let’s say thousand odd crores can come from the terminals itself. Like broad understanding.
Jambunathan Nagarajan
Stopping at this 50 rakes on container and 50 rakes on lsfto. Obviously it’s a matter of as and when the routes are mapped in. We can always go and buy out more container rigs and more LSFTO rigs.
Priyankar Biswas
And if I may just squeeze One more in. So in for the port segment you are roughly highlighting 2485 crores in FY26 and then this ports EBITDA is crossing 4000 crore levels in FY28. So if you can elaborate which are the key ports in your opinion and or let’s say contributions from study pipeline if that is included. So how do we reach this 4300 odd levels? So if you can just elaborate a bit. But that’s my last question.
Jambunathan Nagarajan
Yeah. So slurry, you know we have a take or pay contract which can throw out 800 crores if constructed on time. Jatadar can give another 300 to 400 crores. And the rest of the two brownfield expansions which are happening at Dharamtar and Jaigarh can give out the balance numbers with a 50% capacity utilization because we expect the steel business to commence in the second half. So that is the way we have calibrated our numbers for these two ports I Jagad and Dharamtar.
Priyankar Biswas
Okay, that’s very clear sir. Thank you for the detailed answer.
Operator
Thank you. Next question is from line of Aditya Mongya from Kota. Please go ahead.
Alok Deora
Good evening everyone and thank you for the opportunity. I’ll go ahead with my questions. The first one being on the report EBITDA margin. It seems as if there’s been a yoy decline that has happened. So just wanted to get a sense as to what is driving it. Is it something linked to pricing trends that you are discovering or other factors behind beyond it here?
Rinkesh Roy
So the growth if you see has mostly come from low EBITDA terminals at JNPT or at Tuticore. And that is the main reason why you getting the EBITDA margin is
Jambunathan Nagarajan
Lower.
Rinkesh Roy
It’s not a major lower but marginal. It has reduced
Jambunathan Nagarajan
Also in Q3 of this financial year. In one of our NBC’s in Jaigad we have taken a repair of 8 crores. So that was a one off item incurred in this quarter. Also in Paradeep coal terminal we have taken some preventive maintenance to the tune of 8 crores. So these are two expenses to the tune of around 17 crores which have been incurred in these ports which have been booked in Q3. So this is like a one time spend I would say which should not be kind of taken that it will be recurring in nature. So to that extent there is a distortion in a percentage.
Alok Deora
Could you also clarify what is the data from an E subcharge perspective on a Y basis in third quarter.
Jambunathan Nagarajan
So last year it was 15.37. Current year it is 5.38.
Alok Deora
I’m talking about Q3.
Jambunathan Nagarajan
Q3
Alok Deora
So make it back to about 7. Yeah. Understood. Just a last point of clarity, maybe then we’ll come back in the queue. Just focusing on the standalone financials which is my sense represents more your go operations. Correct me if I’m wrong over there, but it seemed as if the incremental gross margins were quite limited over there. Just trying to get a sense whether there is anything to read over there or not. It’s a small thing. I’m just trying to clarify standard operations that makes maximum margins on a yoy basis.
Rinkesh Roy
We couldn’t get you. Could you please repeat what you said?
Alok Deora
The standalone margins, incremental sales and let’s say incremental EBITDA coming on a YY basis is pretty low for the third quarter as well as for a nine month period. Just trying to get a sense of what’s driving the same.
Jambunathan Nagarajan
So it is more to do with a mix which is again from the subsidiaries only. Otherwise there is nothing much to infer in that.
Alok Deora
Thank you for response. I’ll get the control again. Thank you.
Operator
Thank you. Next question is from line of Achal Lohade from Nuama. Please go ahead.
Achal Lohade
Yeah, good evening. Thank you for the opportunity. Just one quick clarification. You said ebitda to grow 15% YY in FY27 and double in FY28. Do you mean doubling from FY26 or doubling from FY27?
Rinkesh Roy
FY26. Doubling from FY26. Understood.
Achal Lohade
Thank you for that clarification. Sir. The second question I have with respect to the target capacities, you know, does it require now more, you know, acquisitions to achieve the same or. We are broadly through now the focus is entirely only on executing the existing project.
Rinkesh Roy
So we are broadly through. We are now totally focused on completion of these projects. And like as I told you, the slurry pipeline, Jatadar, the terminals, one of the terminals which we had taken on ppp, it has already, it’s, you know, on the verge of commissioning. So we are broadly on track into completing and executing these projects on time.
Jambunathan Nagarajan
While the focus is on completing the projects, we will also be participating in the PPP process and any good opportunity comes up, we will definitely be bidding for those. So
Rinkesh Roy
If you would have seen our presentation, 400 plus is what they will be adding on this Triple P projects will be adding on beyond the 400 million ton capacity that we are targeting.
Achal Lohade
Right. I was to ask the second question that Only sir. So what. What is the. How’s the momentum? Has it like considerably slow down compared to what we were hoping for say about 3/4 back?
Rinkesh Roy
No. If you look at it, we won the bids for berth seven and eight in Shama Prasad Mukherjee port. And now we are looking. We’ve again applied for another bid in the same place. So we are on track and we’re you know evaluating each opportunity as and when it comes.
Achal Lohade
Understood. And just one more question with respect to the tariff. You know there was earlier some thoughts about we would be able to reprice or have the freedom to charge the tariff at the major port terminals what we operate. Yes.
Rinkesh Roy
So as we clarified earlier also. So these are in the new mca. So the two terminals that we are talking of, JNP and TUTIC or in as well as the one which we won in Kolkata, all the three terminals have this clarity on free pricing.
Achal Lohade
Right. Or what about existing? Is there any case of.
Rinkesh Roy
That is an issue that will be, you know taken. A call will be taken by the ministry. So we can’t really know base our entire business on when that’s going to happen. So the new ones are on this policy.
Achal Lohade
But is the. Is the discussion on? I. I wanted to check if there is any update
Rinkesh Roy
Like any. Any advanced stage of anything. So that discussion is on. But we can’t really tell you a date or something on that.
Achal Lohade
Yeah. Yeah, that is right, sir. All right, so that. That’s all from my end. Thank you so much.
Operator
Thank you. Next question is from Nanav Ketan chain from Avendus Park. Please go ahead.
Ketan Jain
Thank you. Sir, just a question on the expansion capacities of slurry pipeline and Jatagar port. I just wanted to understand how much of the cargo in these ports on these infrastructure assets is towards our group cargo from JSW Steel in the slurry pipeline and from indeed other port.
Rinkesh Roy
So the slurry pipeline and Jatadar as of now the. In the initial period it will be entirely group. So we should have clarity on that. The slurry pipeline is built primarily serving a captive mine to a captive port. So these quantities will be on the group cargo. Do we expect. Let me further clarify to you. We expect that in, you know by 2728 we should be landing up into 53 to 55% group versus 47 to 45 third party because of these two developments.
Ketan Jain
Understood. And so sir, is this dependent on. Existing facilities of JSW Steel or is. It on an expansion project in Odisha which. With which these assets will be utilized?
Rinkesh Roy
So these are with the existing mines, iron ore mines at Noah Gone in JSW has got, I don’t know, mines at Noah Gone. So that is connected, the iron ore movement is connected to that particular set of mines and the movement further will be depending on Dolby or or vision as depending on the demand.
Ketan Jain
Understood. And just so will this cannibalize the cargo from Paradeep Ion or terminal which we already have?
Rinkesh Roy
No, this is a separate stream of car.
Ketan Jain
Understood. This one.
Rinkesh Roy
In the current period most of the cargo that we got at Paradigm were mostly third party cargo. It was less of group cargo. So there’s absolutely nothing that we’re looking at cannibalizing from.
Ketan Jain
Understood? Understood. Thank you for the response. Just one last question sir. If you could help me understand the railway rakes segment which we are entering in about the acquisition, the rationale and the opportunity size in this. If you could just explain a bit about the business model and how attractive this is.
Rinkesh Roy
So basically there are two major components on this rakes that we have acquired. One is called through something called the GPWI scheme. So these are called general purpose wagon investment schemes. So these are currently operating in the eastern area, that is they serve BPSL and Paradip port to Bengal. They carry clinkers. So it’s a broad triangulated kind of movement that is done. The balance is of LSFTO wagons. So LSFTO wagons have two components. Here again we have one group of wagons which deliver iron ore to Vijayanagar and Bobsn and we have another set of wagons which carry finished steel.
So if you look at it, the rational was that Vijay Nagar currently in India has now ramped up production to 18 million tons per annum. So this has now become a single point where you are looking at an output of 1.5 million tons of steel coming out from that plant. And in that the majority is being carried by Indian railway rakes or by road. The margin, the movement through these specialized wagons are very less. So that is where we want to enter and we want to further ramp it up as we had told earlier.
So these numbers we are looking at, ramping it up from 25 gradually to 50 and then further onwards moving it up. Similarly, Dolby on the west coast is also ramping up its production from 10 to 15. So every month you are looking at output of a million tonnes plus coming out from these two locations. And that is where we had thought that we will enter into this area.
Ketan Jain
Understood sir. Thank you. I’ll get back into the queue.
Operator
Thank you. Next question is from the land of Aritra Banerjee from Nomura. Please go ahead.
Aritra Banerjee
Yeah, thanks for taking my question. And congratulations on a good quarter with a strong set of numbers. My first question is regarding the Flurry pipeline. So if you could please provide a bit of color regarding the, you know, the kind of margin profile or the return profile that one might expect from this asset.
Jambunathan Nagarajan
So margins will be around 2 third.
Aritra Banerjee
Okay. And another question is this is the guidance that you’re given for FY26. So basis that you know, for 4Q there seems to be a bit of a higher growth rate around 20 21% if my calculations are correct. Could you please shed some light on, you know, what will be driving this high sort of growth rate in the fourth quarter for us to meet the guidance? FY26.
Jambunathan Nagarajan
Yes. So every year we have been booking in the fourth quarter an income of around 70 to 75 crores which accretes from one of our contracts in the LNG terminal which we have at Jaigird. So this year also it won’t be much different because we have a takeover contract with one of our customers at Jaegerd. That will be a lump sum income which will be booked in Q4 to the tune of around 70 to 75 crores. So that is what is queuing your Q4 a bit favorably.
Aritra Banerjee
Understood. And if you can squeeze in one last question. So regarding the logistics business. So our 2030 roadmap states a target of around 8,000 crores of revenue and basis the guidance that they’ve given till FY28. So that still, you know, translates into sort of a very steep required run rate for the remaining two years. That is FY29, FY30. So will it. Will we be including any sort of inorganic acquisitions to reach a longer roadmap target or would it be coming through all the assets that we already have acquired or we have under us?
Jambunathan Nagarajan
There will be further acquisitions or construction of CFS Stroke ICDs which will be ongoing. And as I said, what we have already announced, that ramp up itself will be happening from 28 onwards. Gradually point number one plus acquisition of further container wakes and LSFTO rake will continue.
Aritra Banerjee
Got it? Got it. Those were my three questions. Thank you. And all the best for the remaining quarter.
Operator
Thank you very much. Next question is from Lanav. Mohit Kumar from ICICI Securities. Please go ahead.
Mohit Kumar
Hi, good evening sir. And thanks for the opportunity. My first question is what kind of numbers or volumes you are baking in from Jaguar and Dharamtar due to steel expansion at Dolby. And do you See any risk of delaying steel expansion by steel six months or so, sort of. Because it will start affecting our FY28 numbers. Yeah.
Jambunathan Nagarajan
Around 10 million is what we have baked for FY28. Plus our understanding is that even if steel business has to start, the working capital accretion should commence a quarter before. So that is the way we have done our workings. Yeah, yeah.
Unidentified Participant
Mohit, just to add, see, the peak cargo that can come is close to 27 to 28 million tons. But in this guidance, you know, on a very conservative side, we have assumed only 10 million ton in first year which is financially at 28. So just to make a case, if there is a delay of one or two months, even up to six months, this 10 million ton is very, very safe and conservative. That is how we are looking at it. But if you ask me the what is the peak potential? This would be 2010, 28 minutes.
Mohit Kumar
Okay, so making up the one third of the one third. Yeah, understood. My second question is you are acquiring JSW real business, right? What was the, what is the cross block of the asset you are acquiring? And are there any other GSW group which has, which are similar rail business outside of this particular transaction?
Jambunathan Nagarajan
So gross block is around 830 crores and as we speak we have already gotten around 22 rakes and two rakes are expected to come this month and one rake is expected in February. So put together it will be around 830 crores inclusive of GST.
Mohit Kumar
My question is, are there any other businesses which also has similar logistics business which you might be interested in? I think GSW shipping also has some shift, right? Is there any plan to get into shipping, Eric?
Rinkesh Roy
No, no, no. We are not getting into shipping.
Mohit Kumar
Understood sir. Thank you. All the better. Thank you.
Operator
Thank you very much. Ladies and gentlemen. Next question is from the line of Alok Devra from Motila Loswal. Please go ahead.
Alok Deora
Yeah, good evening sir. For the opportunity, just one question I had. Most of the questions were answered. Thanks for giving this year by year, you know, assessment on how the ports business and logistics business will shape up. So my question is more pertaining to FY28 where we see a really sharp jump in the ports revenue as well as in the logistics business. So just wanted to understand how that will come because we are looking at a, almost a 65% plus growth in revenue across, you know, these, across the ports side and even at the consolidated side.
So how are we looking at it?
Unidentified Participant
Yeah, look, I think in one of the answer Nagarajan actually articulated there are four Projects which will contribute to this incremental or the large bump which we are talking about. So one of them is slurry pipeline project which is, you know, on take or pay contract. So you, your revenues and EBITDA are almost sure. Then you have Jada Dar port which is again in our guidance we are very conservative, building only to 10 to 12 million tons of cargo. And then the Jagger and Dharamsar expansion to projects put together.
So this chunk of four projects provides you a meaningful growth in FY28.
Jambunathan Nagarajan
Yeah. And point to be noted is in all these four projects there is no concept of royalty. Yeah. So per se, in all these Project 4 projects, EBITDA margin will be slightly elevated. Yes,
Alok Deora
Sure. Just one last question. In logistics, even in FY28 we are capturing around 20% or slightly lower than 20% margins. If I just take the revenue and the EBITDA guidance which we have given out. So, you know, in FY30 we are almost looking at a 25% EBITDA margin. So what would really change there? That we are looking at a 6, 700 basis points improvement in, in the two year period from 28 to 30. Because by FY28 itself our logistics business will be quite stable. So the margin should be ideally the stable state margin.
Yeah, that would be my question.
Jambunathan Nagarajan
Yeah. So FY27 and 28, if you see the revenue as well as the EBITDA is primarily driven from acquisition of this container rigs and LSFT. Or just to give a split between an elevated 27 EBITDA margin versus a bit lower 28 EBITDA margin because the focus will be more on LSFTO rakes. As you are aware, for GBWs there is a moratorium. And from a percentage perspective, the first 25 rakes which we have acquired, 19 are under GPWS and 6 will be under LSFTO. And in LSFTO the margins are slightly lower vis a vis.
Under GPWS GPWS the margins are typically higher. So in our total pack of 50 rakes, 19 rakes which will be there in FY27 will continue in 28 also. But the incremental 25 rakes is all for LSFTO wherein the margins will be lower. So that is where you can see the logistic business margin is slightly dropping from 27 to 28, FY27 to FY28. And to answer your second question on the overall margins moving up from 20 to 25 percentage, the ICDs and CFS revenues, income, EBITDA will accrete in FY2930 which will all be under construction and under ramp up phase from 2728 onwards.
Rinkesh Roy
So generally the clearances to get the permission for ICDs and all, they generally take one and a half to two years. So that is where you live. That terminals and their conversion into ICDs. There being a time gap in that.
Alok Deora
Sure, sure. Got it sir. Thank you so much sir. And all the best.
Operator
Thank you. And I hand the conference over to the management for closing comments.
Rinkesh Roy
So as we have been and I have been repeatedly stressing, there are three main focus areas for the management team and that we have been continuously trying to do. Number one, early completion of projects which will result in doubling of EBITDA by FY28, the focus on ramping up of our logistics business, which are rolling assets in nature and will result in immediate conversion to ebitda. And the third is on efficiency gains. So these are our three prime focus areas and we remain committed to it. Thank you.
Operator
Thank you very much on behalf of Muthi Lashwal Financial Services Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you.