Oman partnership supports capacity expansion; integrated logistics strategy to accelerate growth
JSW Infrastructure (JSWINFRA) has entered into a transformative partnership with Minerals Development Oman (MDO) by acquiring a 51% stake in a newly incorporated Port SPV. The SPV will develop and operate a 27mtpa Greenfield bulk port to support the industrial minerals projects in the Dhofar region of Oman. With a total project capex of USD419m and a construction timeline of 36 months, the port is expected to commence commercial operations in 1QFY30. The port is designed to handle industrial minerals sourced from MDO’s extensive concessions. Considering JSW’s strong balance sheet with net debt/equity at ~0.16x and net debt/EBITDA at ~0.75x, we believe it has enough headroom for growth-led investments.
JSWINFRA is executing multiple brownfield and greenfield expansion projects, with plans to scale up from 177mtpa currently to 400mtpa by FY30. Projects under execution total 121.6mtpa (excl Oman), including the Kolkata Container Terminal (6.3mtpa), Tuticorin (7mtpa), and JNPA Liquid Terminal (4.5mtpa), with completion expected during FY26-28. The company is undertaking strategic capacity upgrades at Mangalore, Southwest Port, Dharamtar, and Jaigarh, targeting a combined expansions of over 40mtpa. Landmark greenfield projects such as the Keni Port (30mtpa), Jatadhar Port (30mtpa), and a 302km slurry pipeline in Odisha are progressing well, all scheduled for commissioning by FY28-30.
Alongside ports, JSWINFRA is pursuing an aggressive logistics infrastructure build-out under JSW Ports Logistics, supported by an investment plan of INR90b through FY30. This expansion is expected to deliver revenue of INR80b and EBITDA of INR20b at scale.
With a balanced east-west coast presence and expanding inland logistics, JSWINFRA is well-placed to benefit from India’s push for multimodal integration and port-led industrial growth. We estimate JSWINFRA to deliver a CAGR of 15%/24%/26%/23% in volume/revenue/EBITDA/APAT over FY25- 28. Reiterate BUY with a TP of INR360 (based on 17x FY28E EV/EBITDA).
