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Care Ratings reaffirms ratings of Aegis Logistics at 'AA/A1+' with 'stable' outlook

26-Mar-26 17:31 Hrs IST

The agency has also affirmed the company's short-term rating at 'CARE A1+'.

Care Ratings stated that the reaffirmation of ratings of Aegis Logistics (ALL) continues to reflect its established presence in the liquefied petroleum gas (LPG) and liquid bulk logistics business, diversified service offerings, experienced management, and strategically located terminals across key ports in India.

The ratings also factor in the company's long-standing relationships with major customers and suppliers, comfortable capital structure, and strong debt service coverage indicators.

The ratings also draw comfort from significant improvement in its liquidity post successful initial public offering (IPO) of Aegis Vopak Terminals (AVTL) in Q1 FY26 leading to ALL becoming net debt negative as of 31 December 2025.

CARE Ratings notes that the company is undertaking significant expansion to strengthen its LPG and liquid terminal infrastructure across multiple locations.

The company is also developing India's first independent ammonia storage terminal at Pipavav, which is expected to be commissioned by Q1 FY27. These projects form part of the broader infrastructure expansion through its joint venture (JV) company, AVTL, to enhance the group's storage capacity and terminal handling capabilities.

Timely execution and scaling up of these projects are expected to drive revenue growth and improve capacity utilisation over the medium term.

However, ratings factor in potential volume constraints arising from ongoing geopolitical risks, particularly disruptions in the Strait of Hormuz, which could impact LPG trade flows and throughput volumes.

Additionally, the company's exposure to the relatively low-margin LPG sourcing business, and volatility in global energy prices and demand fluctuations across end-user industries, remains a constraint.

ALL's ability to navigate potential supply disruptions, ramp up utilisation of new capacities, and sustain profitability and coverage metrics will remain key monitorables going forward.

Aegis Logistics is an integrated oil, gas, and chemical logistics company, which specialises in LPG import, storage, distribution, and bulk liquid storage and terminalling services for petroleum, petrochemicals, and chemical products. Its infrastructure includes LPG and liquid storage terminals at major ports such as Mumbai, Haldia, Pipavav, Kochi, Kandla, Mangalore, and JNPT.

The scrip had advanced 2.13% to end at Rs 612.05 on the BSE yesterday.

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