Morgan Stanley has reiterated its ‘Underweight’ rating on Container Corporation of India (CONCOR) with a target price of ₹515, citing a weaker-than-expected performance across key financial metrics in Q1FY26. The current market price of the stock is ₹580.45.
Earnings miss across revenue and profitability
CONCOR reported muted growth for the first quarter, with revenue rising just 3% year-on-year, EBITDA declining 1%, and PAT increasing marginally by 1%. These figures fell short of Morgan Stanley’s estimates by 12%, 15%, and 13% respectively.
Land license fees came in at ₹1.1 billion, reflecting a 4% year-on-year increase.
Segment performance below expectations
Exim revenue growth stood at 6%, notably lower than the estimated 13%, while domestic revenue contracted by 3%, compared to Morgan Stanley’s expectation of 24% growth.
Exim EBIT margin came in at 20.7%, 50 basis points higher than the previous year and ahead of the 20% estimate. In contrast, domestic EBIT margin declined 90 basis points YoY to 5%, missing the estimated 6.3%.
Volume growth not enough to offset margin pressure
Handling volumes improved 11% YoY, with Exim and domestic segments growing 12% and 9% respectively. However, volume gains were not sufficient to offset the shortfall in margins and revenue growth.
Disclaimer: The views expressed in this article are based on brokerage reports and do not represent the opinion of this publication. Investors are advised to consult their financial advisors before making any investment decisions.
