JSW Infrastructure, the logistics and port development arm of the JSW Group, continues to chart an ambitious growth trajectory. Motilal Oswal has reaffirmed its BUY recommendation for the stock, with a revised target price of Rs 370, implying a potential upside of 26% from current levels. The firm’s 4QFY25 performance reinforces the resilience of its business model and the scalability of its logistics expansion. With improving cargo volumes, a successful integration of Navkar Corporation, and robust capex plans, JSWINFRA appears well-positioned to ride India’s infrastructure growth wave.

Strong Year-End Performance Validates Long-Term Strategy

JSW Infrastructure posted consolidated revenue of Rs 12.8 billion in Q4FY25, marking a 17% YoY growth. This performance was supported by cargo handling of 31.2 million tons, a 5% YoY rise, driven by robust coal terminal throughput and new contributions from the Tuticorin and JNPA terminals.

EBITDA rose 10% YoY to Rs 6.4 billion, with margins at 49.9%, slightly lower YoY but up sequentially. Net adjusted PAT came in at Rs 4.4 billion, up 19% YoY, bolstered by lower tax outgo. For the full year, revenue grew 19% to Rs 44.8 billion, while adjusted PAT increased 22% to Rs 14.5 billion.

Third-Party Volumes and Port Capacity Expansion Fuel Growth

JSW Infrastructure continues to balance its own cargo with third-party operations. In Q4FY25, third-party volumes grew 11% YoY, contributing 50% to total cargo—up from 47% in the previous year.

Expansion projects at Jaigarh, Dharamtar, Goa, and other key ports are expected to boost port capacity to 400 MTPA by FY30. The company also plans significant upgrades to its slurry pipeline, terminals, and logistics infrastructure.

Logistics Business Set for Exponential Growth

Post the Navkar Corporation acquisition, JSWINFRA is aiming for 50% growth in logistics revenue in FY26, supported by Rs 15 billion capex earmarked for the segment. It plans to scale its logistics revenue to Rs 80 billion by FY30, with a target EBITDA margin of 25%.

Key focus areas include:

Asset-light expansion through Gati Shakti terminals

Investments in rakes and Vertical Cargo Terminals

Revamp of Navkar operations with Rs 1.7 billion outlay

Exploration of inorganic growth opportunities in logistics

Operational Highlights from FY25

During the fiscal, JSW Infrastructure:

Handled 117 million tons of cargo (+9% YoY)

Maintained a net debt to EBITDA ratio of 0.65x

Declared a dividend of Rs 0.80 per share

Reported strong financials:

Capex and Project Execution Momentum to Continue

The company has committed Rs 55 billion in capex for FY26, including Rs 40 billion for ports and Rs 15 billion for logistics. Critical infrastructure initiatives include:

JNPA Liquid Terminal: Commissioning by July-August 2025

Tuticorin Terminal: Completion by Q4FY26

Mangalore Container Terminal Expansion: Ready by Q2FY27

LPG Terminal at Jaigarh: Targeted for commissioning in June 2026

Delhi Port: Expected to be completed by March 2027

Slurry Pipeline (302 km): On schedule for Mar’27 commissioning

Financial Forecast and Valuation

Motilal Oswal expects a:

Volume CAGR of 13%, revenue CAGR of 22%, and EBITDA CAGR of 23% over FY25–27

Adjusted PAT to grow to Rs 20 billion by FY27, translating into an EPS of Rs 9.4

Continued improvement in return ratios with RoE rising to 16.7% and RoCE to 13.2% by FY27

The stock is trading at a P/E of 31.1x FY27E earnings and EV/EBITDA of 18.6x, which analysts view as justified given the company’s robust cash flow and scalable asset base.

Key Investment Levels and Target

Motilal Oswal has retained its BUY rating and revised the target price to Rs 370, driven by improving fundamentals and logistics integration.

Current Price: Rs 294
Target Price: Rs 370
Upside Potential: 26%
Valuation Basis: 23x FY27 EV/EBITDA

Bottomline: A Strategic Port-Led Play with Strong Upside

JSW Infrastructure offers a compelling opportunity within India’s logistics and infrastructure ecosystem. With strategic expansions, a scalable logistics arm, and robust financial metrics, the company is poised for sustained long-term growth.

Investors seeking to capitalize on India's logistics surge and trade expansion may find JSWINFRA an attractive port-led infrastructure play. However, timely execution of projects and third-party cargo stability will remain key watchpoints going forward.