Container Corporation of India Ltd (BOM:531344) Q2 2026 Earnings Call Highlights: Record ...

This article first appeared on GuruFocus.

Release Date: November 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Container Corporation of India Ltd (BOM:531344) reported the highest ever throughput of 1.44 million TUs in Q2 FY26. The company achieved a throughput growth of 11% year-on-year, with domestic growth at 13%. Operating margin increased from 30.47% to 31.44%, and rail freight margin improved from 26.17% to 27.80%. The company has signed MOUs with UltraTech Cement and Adani Cement, which are expected to drive domestic growth. Container Corporation of India Ltd (BOM:531344) is expanding into the shipping sector, with high-margin business opportunities in the Middle East.

Negative Points

Domestic demand was lower than expected due to reduced demand in sectors like cement, gunny bales, and tiles. Market share decreased overall, with a drop from 55.9% to 54.1% in exim and from 58% to 55.7% in domestic. There was a decrease in exim lead by 2.5% due to less demand in North India. The company faces challenges in container supply, with only 200 out of 1,000 ordered containers received. The company is experiencing competitive pressure, particularly in the waste paper commodity from Mundra Port.

Q & A Highlights

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Q: How does Container Corporation of India plan to achieve its growth targets for FY26, specifically the 10% growth in EXIM and 20% in domestic volumes? A: The Chairman and Managing Director, Mr. Sanjay Swaro, explained that the company has already achieved a 10.2% growth in EXIM for the first half of the financial year, and he is optimistic that this growth will continue or even exceed the guidance. For domestic growth, which was 13% in the first half, the company is working on increasing demand through MOUs with major cement companies and expects to achieve the 20% target by year-end.

Q: Can you provide clarity on the average revenue per TEU for EXIM and domestic businesses? A: Mr. Sanjay Swaro clarified that the average revenue per TEU for EXIM is around INR 27,000, not INR 14,000 as previously mentioned. For domestic, it is in the range of INR 57,000 to INR 58,000, showing an increase from INR 56,000.

Q: What is the outlook for rail coefficient improvements at major ports with the upcoming DFC connectivity? A: The Chairman noted that rail coefficients have increased at all major ports, and with the Dedicated Freight Corridor (DFC) connectivity to JNPT expected by March 2026, there will be a significant boost. He anticipates the rail coefficient at JNPT to potentially double within a year after DFC becomes operational.

Story Continues

Q: How is the company addressing the market share decline in EXIM and domestic segments? A: The decline in market share is attributed to a strategic decision to avoid low-margin, low-lead business. The company is focusing on regaining market share by offering competitive rates and targeting high-margin businesses, such as bulk cement transport.

Q: What are the strategic initiatives in the shipping sector and their expected impact? A: Container Corporation of India has begun expanding into the shipping sector, with a focus on high-margin, both-sided loaded movements. The company has signed MOUs with international partners and is optimistic about the growth potential, although specific numbers are not yet available.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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