JSW Infrastructure jumps 6% as analysts see strong medium-term growth

While analysts see near-term volumes to be choppy for JSW Infra, the medium-term growth visibility looks strong to them on the backdrop of port expansion and logistics scale-up

JSW Infrastructure share price jumped 6.2 per cent in trade, registering an intra-day high at ₹273.7 per share on BSE. At 9:48 AM, JSW Infra shares were trading 5.39 per cent higher at ₹271.55 per share. In comparison, BSE Sensex was down 0.51 per cent at 83,145.27. 

 

JSW Infrastructure reported its December quarter (Q3FY26) results on Friday, after market hours. Brokerages said that the numbers were largely in line with the Street’s expectations. While analysts see near-term volumes to be choppy, the medium-term growth visibility looks strong to them on the backdrop of port expansion and logistics scale-up.

JSW Infrastructure Q3 results highlights:

• JSW Infrastructure reported an 8.89 per cent increase in consolidated profit attributable to owners, which stood at ₹359.1 crore for Q3 FY26, as compared to ₹329.76 crore year-on-year (Y-o-Y).
• Revenue from operations grew 14.2 per cent to ₹1,349 crore, as compared to ₹1,181.83 crore a year ago. 
• The company’s Earnings before interest, tax, depreciation and amortisation (Ebitda) stood at ₹703 crore, as compared to ₹670 crore, a year ago, up 4.9 per cent. Ebitda margin slipped to 49.9 per cent from 52.9 per net year-on-year (Y-o-Y). 

Brokerages’ view on JSW Infrastructure 

Elara Capital | Buy | Target raised to ₹393 from ₹362

JSW Infrastructure’s near-term port volumes have been volatile, mainly due to weak iron ore exports, according to the brokerage. However, port Ebitda has remained stable, supported by tariff hikes. Elara Capital expects profitability to improve structurally as the company shifts toward greenfield private ports, diversifies cargo into containers, and commissions the high-margin Oman Port.

 

Elara highlighted that the logistics business (Navkar) is scaling up well. With JSW Infra acquiring more railway rakes, new capacity additions are expected to drive multi-fold growth in logistics.

 

The brokerage forecasts a 30 per cent Ebitda compound annual growth rate (CAGR) over FY25–28, in line with management’s medium-term guidance, supported by a major reset in the business model. Management is targeting port Ebitda margins of 54 per cent and logistics margins of 19 per cent by FY28. Over FY25–28E, Elara expects revenue CAGR of 29 per cent and earnings CAGR of 22 per cent, assuming growth is funded through debt.

Emkay Global Financial Services | Add | Target ₹300

Emkay noted that JSW Infrastructure’s Q3FY26 results were largely in line with Street expectations. The ports business grew 10 per cent Y-o-Y, driven by strong volume gains at the Southwest port (32 per cent Y-o-Y) and Dharamtar port (8 per cent Y-o-Y). However, the overall Ebitda margin contracted by 190 basis points (bps) Y-o-Y, as growth came from lower-margin ports.

 

The logistics segment (Navkar) delivered a standout performance, with revenue surging 53 per cent Y-o-Y and Ebitda doubling (103 per cent Y-o-Y), reflecting rapid scale-up. Management introduced medium-term guidance, projecting a 38 per cent revenue compound annual growth rate (CAGR) and 30 per cent Ebitda CAGR over FY25–28.

 

Emkay said the project pipeline and execution visibility remain strong. Factoring in timely commissioning, the brokerage raised its FY28 revenue and Ebitda estimates by 3 per cent and 5 per cent, respectively

Motilal Oswal Financial Services | Buy | Target: ₹360 

Motilal Oswal highlighted that JSW Infra is executing multiple expansion projects across ports and logistics, with ₹5,500 crore capex planned in FY26. Backed by a strong balance sheet and rising cargo diversity, the company aims to scale port capacity to 400 MTPA and logistics revenue to ₹8,000 crore by FY30, positioning it well for long-term growth.

 

The brokerage broadly retained its FY26/FY27 estimates while revising FY28 estimates upward, factoring in the completion of major port expansions and a sharp scale-up in logistics. It expects a volume/revenue/Ebitda/adjusted PAT CAGR of 13 per cent/33 per cent/28 per cent/29 per cent over FY25–28. 

JM Financial Institutional Equities | Buy | Target raised to ₹400 from ₹395

JM Financial highlighted that management has laid out a clear medium-term plan to nearly double Ebitda from ₹2,600 crore in FY26 to ₹5,000 crore by FY28, supported by a detailed strategy across ports and logistics.

 

The brokerage noted that this guidance is fully aligned with its own projections, previously outlined in its earlier research. After the recent stock correction, the brokerage believes valuation comfort has improved meaningfully, creating a strong entry opportunity. JM Financial reiterated that JSW Infra remains its top pick in the logistics space.

 

Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers discretion is advised.