One infrastructure stock that’s winning over both FIIs and DIIs. Here’s why.

Private port operators are increasingly looking beyond cargo handling to build integrated logistics ecosystems. Modern port operators are evolving. Instead of merely moving cargo from factories to ports via rail and freight stations, they are aggressively expanding to capture the entire supply chain.

JSW Infrastructure Ltd. appears to be positioning itself for exactly that opportunity. Its latest strategy indicates that it wants to evolve from a port operator into a broader logistics and infrastructure platform through capacity expansion, logistics integration and a pipeline of new projects.

And this strategy seems to be drawing institutional interest as well. During the April-June 2026 quarter, both foreign institutional investors (FIIs) and domestic institutional investors (DIIs) increased their stake in the company. FIIs raised their stake by 4.29% points, taking the total holding to 11.21% while DIIs increased their stake by 6.76% points, taking the total holding to 9.19% at the end of the quarter. This is amongst a very few companies where both FIIs and DIIs increased their stake during the quarter.

The growing institutional interest makes the business more interesting. Here’s a closer look at JSW Infrastructure’s strategy, expansion pipeline and execution that could determine its long-term growth trajectory.

Expanding the Port Business

JSW Infrastructure currently has a total operational capacity of 186 million tonnes per annum (MMTPA) across ports and terminals on India’s east and west coasts. Along with that, the company has overseas operations in Fujairah, UAE, which have a total capacity of 5 MMTPA. The company handles a diversified mix of cargo, which includes coal, iron ore, containers, liquid cargo and dry bulk, reducing dependence on any single commodity or geography.

During Q1FY27, the company handled a total of 31 million tonnes (MT) of cargo, up a litle less than 6% YoY, while continuing to add capacity across its network.

Furthermore, JSW Infrastructure commenced interim operations at the Kolkata Container Terminal and secured another public-private partnership (PPP) project at Syama Prasad Mookerjee Port. This is expected to increase the company’s container handling capacity at Kolkata to 1.4 million Twenty-Foot Equivalent Unit (TEUs) from the current 0.9 million TEUs.

JSW Infrastructure is targeting a significant increase in capacity over the next five years. The company plans to expand its operational capacity from the current 186 MMTPA to 300 MMTPA by FY28 and 400 MMTPA by FY30.

The expansion pipeline is spread across multiple projects. These include Keni Port which can add up to 30 MMTPA; Murbe Port, up to 33 MMTPA; Jatadhar Port, which can add another 30 MMTPA; and others. The company has also identified a 30-MMTPA slurry pipeline project in Odisha and a 27-MMTPA greenfield port in Oman as part of its long-term pipeline.

Logistics: The Next Growth Engine

JSW Infrastructure is not just expanding its port business but strategically positioning itself as a complete logistics player. During the first quarter of FY27, the company’s logistics segment grew significantly. Navkar Corporation, a subsidiary of the company, reported 40% YoY growth in domestic cargo volumes, while Export-Import (EXIM) volumes rose 2% YoY. The company also commenced commercial operations at the Arakkonam Gati Shakti Cargo Terminal (GCT), marking another step in its strategy to build an integrated logistics network.

For expanding its logistics business, the company has identified five growth pillars. First, it plans to leverage the wider JSW Group’s manufacturing footprint across steel, cement and paints to develop greenfield Inland Container Depots (ICDs) and Multi-Modal Logistics Parks (MMLPs).

Then, the company is planning to expand its presence in Gati Shakti Cargo Terminals (GCTs) further through an asset-light model, where Indian Railways provides land.

Management is also looking to grow through inorganic acquisitions, similar to its acquisition of Navkar Corporation, by acquiring container freight station (CFS) and ICD businesses. In addition, it plans to partner with third-party operators to expand its logistics network.

Rail logistics is another focus area. The company has already acquired 25 rail rakes and plans to expand the fleet to 110 in the near-term and up to 140 container rakes in the medium-term.

By FY30, the company is targeting to generate revenue of Rs 8,000 crore from the logistics segment, backed by a planned capital expenditure of Rs 9,000 crore between FY25 and FY30.

Project Execution Gains Momentum

Among the greenfield projects, the 7-MMTPA Tuticorin Bulk Terminal remains on track for completion by Q4 FY27. The company has already handled 1.39 MT of cargo through interim operations during Q1 FY27 while construction continues. At the Kolkata Container Terminal, interim operations have commenced, with a 6.3-MMTPA facility expected to be completed by Q3 FY28.

Coming to the brownfield expansion projects, JSW Infrastructure is adding a total of 36 MMTPA of capacity at Jaigarh and Dharamtar.

The project involves an estimated investment of Rs 2,359 crore and is targeted for completion by March 2027. Construction is progressing at both sites, with berth construction at Dharamtar already 65% complete, while key mechanical and conveyor works are underway.

Mixed Financial Growth 

During Q1FY27, JSW Infrastructure witnessed a mixed financial performance. While its revenue from operations grew by 18.1% YoY to Rs 1,445 crore, from Rs 1,224 crore in Q1FY26, its profit after tax (PAT) declined by around 8.2% YoY to Rs 358 crore, from Rs 390 crore during the same period.

The management has projected the total FY27 revenue to surge by around 28% to Rs 6,850 crore, and further grow to Rs 10,800 crore in FY28. The total revenue for FY26 stood at Rs 5,361 crore.

The management also projected the earnings before interest, tax, depreciation and amortization (EBITDA) to grow at a CAGR of 39% till FY28.

The return on capital employed (ROCE) of the company stood at 13.7%, almost at par with the industry median of 13.9%.

Already trading at a premium?

The stock is trading at a price-earnings (PE) ratio of 49.4x, while the industry median stood at 22x. The price-earnings to growth (PEG) ratio is at 1.7x, higher than the industry median of 1.08x, suggesting that the stock is relatively overvalued, even if adjusted for growth.

1-year share price chart of JSW Infrastructure Ltd. 

Final Thoughts 

While JSW Infrastructure has solid expansion plans to transform the business from just a port operator to a full-fledged logistics company, execution remains the key factor determining its future prospects. FIIs and DIIs investing in the company despite the negative growth and profit during the quarter perhaps indicates their conviction regarding the future prospects of the company as well. So, for now, it will be wiser to add the stock to your watchlist to keep a close eye on its business growth and execution process.

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 educational purposes only. 

Maumita Mitra is a seasoned writer specializing in demystifying the world of investment for a broad audience. She has a keen eye for detail and a knack for explaining complex financial concepts in the simplest manner possible. 

Disclosure: The writer and her dependents do not hold the stocks discussed in this article. 

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