Allcargo Terminals Limited , a prominent player in the logistics sector, has received a significant tax order from the Commissioner of GST & Central Excise, Chennai South Commissionerate. The order, which levies tax, interest, and penalty under Section 74 of the CGST Act, has raised concerns about potential financial implications for the company.

GST Demand Details

The Commissioner has denied Allcargo Terminals the benefit of exemption under Serial No. 54(e) and 24B of Notification No. 12/2017-Central Tax (Rate) dated June 28, 2017. Consequently, the authority has confirmed a GST demand of Rs 25.29 crore, along with applicable interest and penalty under Section 74(9) of the CGST Act, 2017.

Company's Response

Allcargo Terminals received the order on August 11. In response to this development, the company's management has expressed confidence in its position. They believe that Allcargo Terminals has strong merits to defend against the tax demand and plans to file an appeal within the statutory timelines.

Financial Impact

Despite the substantial tax demand, Allcargo Terminals has not made any provision in its financial results related to this order. The company's management anticipates no impact on its operations or other activities. This stance suggests a high level of confidence in their legal position and the potential outcome of the appeal process.

Regulatory Compliance

In compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, Allcargo Terminals has duly informed the stock exchanges about this development. The company has reiterated its commitment to upholding the highest standards of ethical conduct and legal compliance.

Recent Performance

While facing this regulatory challenge, Allcargo Terminals continues to show resilience in its operations. According to the company's latest monthly operational update, its Container Freight Station (CFS) volumes for July stood at 52.3 thousand TEUs (Twenty-foot Equivalent Units), showing an improvement from 48.7 thousand TEUs in June.

This data indicates that despite regulatory challenges, Allcargo Terminals is maintaining stable operational performance in its core business activities.

Allcargo Terminals Limited , a key player in India's logistics sector, has unveiled ambitious plans to significantly boost its container handling capacity over the next few years. The company aims to increase its capacity by 65% to reach 1 million Twenty-foot Equivalent Units (TEU) by the fiscal year 2028.

Expansion Strategy

The company has outlined a comprehensive growth strategy to achieve this expansion goal. This plan includes:

• Capacity addition in key markets such as Jawaharlal Nehru Port Trust (JNPT) and Mundra
• Focus on driving volume growth while maintaining profitability
• Leveraging digital-first approaches and experienced team capabilities

Financial Performance

Allcargo Terminals' recent financial results reflect its strong market position:

Operational Highlights

The company reported handling 151,100 TEUs in Q1FY26, representing a 5% year-on-year increase and a 2% quarter-on-quarter growth. This performance underscores Allcargo Terminals' strong operational capabilities and market demand for its services.

Management's Perspective

Suresh Kumar R, Managing Director of Allcargo Terminals Limited, commented on the company's performance and future outlook: "We have started FY26 on a strong note with Q1 EBITDA growing 15% over last year and 3% over the previous quarter. EBITDA per TEU has grown steadily over the past eight quarters, focusing on customer delight powered by operational excellence and digital enablement."

Future Plans

In line with its three-year strategic roadmap, Allcargo Terminals is expanding capacity at key locations, including Nhava Sheva and Mundra. The company has also proposed to raise Rs 38.28 crore through fully convertible warrants to the Promoter Group, initiating its fund-raising plans for expansion and greenfield projects like the Inland Container Depot (ICD) at Farukhnagar.

Industry Outlook

The expansion plans align with the broader growth trajectory of India's logistics sector. With the government's focus on improving infrastructure and initiatives like the Gati Shakti Master Plan, the demand for efficient container handling and logistics services is expected to rise.

Allcargo Terminals' strategic expansion positions the company to capitalize on these industry trends and reinforce its role in facilitating India's growing international trade.

As Allcargo Terminals progresses towards its capacity expansion goals, the company appears well-positioned to meet the increasing demands of India's logistics sector while driving shareholder value through sustainable growth.