Gateway Distriparks and Snowman Logistics held a joint Q3 FY’26 earnings conference call on February 06, 2026. Management addressed key investor concerns regarding governance, tax disputes (specifically the Jaipur project), and the strategic shift in Snowman’s warehousing mix towards dry storage. Progress on the new Indore ICD project, capex plans, and expected growth from trade deals were also detailed.
Governance and Tax Matters Review
The management initiated the Q&A session by addressing investor concerns about recurring tax disputes noted in the accounts. While acknowledging transparency in reporting, management stated that they contest only cases where they believe there is merit, referencing the closure of several tax issues under the Vivad Se Vishwas scheme last year with nominal payouts.
Regarding the Jaipur project’s Benami issue, management confirmed that the disputed amount involving the aggregator land is around INR8 to INR9 crores, which is separate from INR21 crores of owned land under dispute. They emphasized having lawyers’ opinions supporting their case and confirmed the Indore Pithampur project has undergone direct registry due diligence, mitigating similar risks.
Snowman Logistics: Warehousing Strategy Shift
Snowman’s management discussed the decline in historical EBIT margins from 15-20% to lows near 3% this quarter. This was attributed to a strategic shift from predominantly frozen storage to including a mix of chilled and dry warehousing, which carries inherently lower margins due to ample market availability.
- The shift is strategic, driven by customer stickiness (serving QSR/coffee chains requiring both frozen and dry services from a single unit), rather than just filling unused capacity.
- The price realization for dry pallet handling has increased from INR600-700 to INR850-1,000 quarter-on-quarter.
- Pricing hikes are being implemented across the warehousing division during contract renewals, successfully passed on in contracts completed in the last 5 to 6 months.
ICD and CFS Operational Updates
Gateway Distriparks provided updates on its container operations, confirming management will no longer provide split EBITDA margins per TEU, instead reporting a company-wide EBITDA per TEU, showing a consistent trend.
- Capacity Expansion: The company is purchasing 3 new high-capacity rakes and swapping 3 older rakes, expecting the total rake count to reach 37 by end of May/June.
- Dedicated Freight Corridor (DFC): The final connection to JNPT is expected by the end of March, which should lead to a shift of some Mundra volumes towards JNPT. Double stacking percentage is currently 41% and is expected to increase by another 2% to 3%.
- Trade Deals Impact: Management expects a major traction from the announced U.S. trade deal, particularly in exports of handicrafts, textiles, and leather, which currently form 25% of U.S.-bound exports. They are awaiting fine print before quantifying the impact.
Capex and Financial Position
The management confirmed the plan to continue investing approximately INR100 to INR150 crores per annum in capex, primarily for the Indore project, which is expected to be operational within 2 years, adding about 120,000 TEUs capacity.
Regarding debt, management clarified that the reported consolidated balance shows a surplus (net debt to zero in January) after accounting for the Snowman debt. The current cash position is around INR140 crores after the purchase of the Indore land. They confirmed issuing a one-time special dividend to reward shareholders, noting that the high capex and depreciation currently suppress the bottom line, but cash flow generation remains healthy.
Source: BSE
