Multimodal transport means moving goods using more than one mode. A truck carries cargo to a rail terminal. A train moves it across long distances. From there, it may go to a port or back on the road. The idea is to avoid relying only on trucks. This helps reduce costs. It saves time. It also makes freight movement more predictable.
This model is now being actively pushed in India.
The PM Gati Shakti plan integrates railways, roads, and ports, replacing isolated planning with a cohesive strategy. Dedicated freight corridors, rail-linked cargo terminals, and port connectivity projects are central to this effort. The aim is to shorten transit time and lower logistics costs. As a result, freight is gradually shifting towards organised and integrated routes.
This shift opens up an opportunity for investors.
Multimodal infrastructure takes time to build. But once networks and terminals are in place, volumes tend to grow steadily. Companies linked to rail evacuation, ports, and integrated freight movement benefit as utilisation improves. Policy support under Gati Shakti also reduces execution risk. The payoff, while slow, is structural.
The stock selection follows this logic. The focus is only on companies that are already showing results on the ground.
The shortlist is limited to players with double-digit sales growth over the last five years, operating margins that remain stable and defendable, and Return on Capital Employed (ROCE) levels that hold up despite heavy capital investment.
These filters narrow the universe to a small set of companies where multimodal freight growth is visible in the numbers, not just in policy intent.
#1 Transport Corporation of India: Navigating a Patchy Freight Environment
Transport Corporation of India (TCI) is engaged in the business of freight transport, supply chain solutions and transport through seaways.
Transport Corporation of India posted moderate growth in Q2 FY26 amid a patchy freight environment. Consolidated revenue for the quarter rose 7.6% to Rs 1,205 crore year on year (YoY). In the same quarter net profit increased 6.5% to Rs 114 crore YoY. Management said the quarter began on a weak note but volumes improved toward the end of September.
As of today, the company is yet to report its results for Q3 FY26.
Growth was driven mainly by the supply chain segment. Segment revenue increased 17.8% in the quarter and 14% in first half of the financial year. Demand came from automotive, FMCG and quick-commerce customers. Rail operations also saw improvement. TCI handled over 1,400 rakes in the first half, compared with 1,168 a year earlier. Car transportation volumes crossed 190,000 units, reflecting better asset utilisation.
Capital expenditure stood at about Rs 170 crore in first half of the financial year, funded largely through internal accruals. Investments were directed toward network expansion and capacity additions. Management said freight demand remains uneven but is showing signs of stabilisation. Volume growth is expected to improve gradually. Margin recovery, however, is likely to remain slow given competitive pressures.
In the past year, Transport Corporation of India share price is down 10.5%.
Transport Corporation of India 1 Year Share Price Chart
#2 JSW Infrastructure: Scaling Capacity from Tuticorin to Oman
JSW Infrastructure provides maritime-related services including cargo handling, storage solutions, and logistics services.
JSW Infrastructure posted steady numbers in the December quarter despite uneven cargo trends. Revenue rose 14% YoY to Rs 1,350 crore. Net profit increased 9% to Rs 365 crore YoY. For the nine months ended December, revenue was Rs 3,839 crore, up 20% YoY, while profit stood at Rs 1,123 crore, a growth of 12% YoY.
Cargo volumes for the quarter grew by 8% to 31.7 million tonnes. South West Port and Dharamtar led the increase. New interim operations at Tuticorin and JNPA also helped. Lower iron ore movement at Paradip limited the upside.
Capacity expansion remains in focus. Work is underway at Tuticorin and Mangalore. The company is also developing a 27 million tonnes per annum (mtpa) greenfield port in Oman, which is expected to be commissioned in the first half of 2029.
Leverage remained comfortable at 0.76 times earnings before interest, tax, depreciation, and amortisation (EBITDA). Volume growth may stay uneven in the near term, but ongoing projects provide visibility beyond the current year.
In the past year, JSW Infrastructure share price is down 8.9%.
JSW Infrastructure 1 Year Share Price Chart
#3 Adani Ports and Special Economic Zone: Maintaining Dominance Amid Rising Container Volumes
Adani Ports & Special Economic Zone is in the business of development, operations and maintenance of port infrastructure (port services and related infrastructure development) and has linked multi product Special Economic Zone (SEZ) and related infrastructure contiguous to Port at Mundra.
Adani Ports and Special Economic Zone reported healthy numbers for Q2 FY26, led by stable cargo movement across key ports. Consolidated revenue for the quarter rose 19% YoY to Rs 9,167 crore. Net profit for the quarter increased 42% to Rs 3,120 crore, aided by better operating performance and lower interest costs.
Cargo handled during the quarter stood at 104 million tonnes, up 7% from a year earlier. Growth was driven mainly by domestic container volumes. Bulk cargo volumes were largely unchanged. Mundra remained the largest contributor. Ports on the eastern coast also supported overall volumes.
The company is yet to declare its results for Q3 FY26.
Work on expansion projects continued. The Vizhinjam port is progressing and remains on track for commissioning. Capacity expansion is underway at Ennore and Krishnapatnam to handle higher cargo over time. Operations at Haifa Port in Israel continued during the period. There was no material disruption to port activity.
Net leverage stood at 2.3 times EBITDA at the end of the period. Cargo movement remained supported by existing contracts and ongoing trade through the company’s port network.
In the past year, Adani Ports and Special Economic Zone share price rallied 19.7%.
Adani Ports and Special Economic Zone 1 Year Share Price Chart
Valuations
Let’s now turn to the valuations of the companies in focus, using the Enterprise Value to EBITDA multiple as a yardstick.
Valuations of Companies in focus
| Sr No | Company | EV/EBITDA Ratio | 5 Year Median EV/EBITDA | ROCE |
| 1 | Transport Corporation of India | 12.2 | 13.2 | 20.5% |
| 2 | JSW Infrastructure | 21.2 | 25.3 | 13.9% |
| 3 | Adani Ports and Special Economic Zone | 16.3 | 16.5 | 13.8% |
Transport Corporation of India is trading at 12.2 times EV/EBITDA, below its five-year median of 13.2 times. The company also reports a ROCE of 20.5%, which is the highest among the three.
JSW Infrastructure is trading below its own long-term average despite ongoing capacity additions. Returns remain in the mid-teens. This shows that the market has not priced in aggressive growth yet.
Adani Ports is trading close to its historical valuation band. Returns have remained stable over time. The stock is not seeing any sharp premium or discount at current levels.
Put together, valuations across these companies sit close to their own history. There is no clear sign of excess pricing. At the same time, there is limited room for a sharp re-rating unless volumes rise faster than expected.
Conclusion
Multimodal freight in India is still at an early stage. The shift away from road-only transport is gradual. It will take time. Rail and port-linked movement is picking up, but volumes are building slowly.
Companies with the right assets are seeing this change first. Cargo is moving through more organised routes. Utilisation is improving. But this is not a fast cycle. Execution will matter more than expansion. Capital discipline will remain important.
Valuations reflect this reality. Most stocks discussed are trading close to long-term averages. There is limited scope for a sharp re-rating at this stage. Returns will depend on steady volume growth and better use of existing capacity.
For investors, this is a long-term story. Progress will come in steps, not in jumps. Patience matters more than timing.
Disclaimer:
Note: We have relied on data from www.Screener.in throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Ekta Sonecha Desai has a passion for writing and a deep interest in the equity markets. Combined with an analytical approach, she likes to deep into the world of companies, studying their performance, and uncovering insights that bring value to her readers.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
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