Jefferies maintains a bullish outlook on Gateway Distriparks, highlighting the recent completion of the Western Dedicated Freight Corridor as a key driver for accelerating earnings and capacity expansion in India’s logistics sector.
Jefferies has kept a bullish view on Gateway Distriparks, arguing that India’s push to shift freight from road to rail could support a stronger earnings outlook for the logistics company. The brokerage raised its target price to Rs 74 from Rs 73, implying about 34% upside from the recent share price of Rs 54.86, after saying the June quarter result was broadly in line with expectations even though rail volumes were still somewhat soft.
The call comes at a time when India’s western freight backbone has reached a major milestone. According to reporting in The Economic Times, Financial Express and Maritime Gateway, the Western Dedicated Freight Corridor was completed on March 31, 2026, after trial runs on the final 102 km stretch linking JNPT and Vaitarna. The corridor runs 1,506 km from Jawaharlal Nehru Port Terminal in Maharashtra to Dadri in Uttar Pradesh, and its full operation is expected to improve port connectivity and support faster freight movement across western India.
Gateway Distriparks operates rail-linked inland container depots and container freight stations, and also owns a majority stake in cold chain business Snowman Logistics. In the June quarter, the company reported consolidated income of Rs 553.7 crore, EBITDA of Rs 121.5 crore and profit after tax of Rs 51.3 crore, while handling 1,83,867 TEUs of container volumes. Jefferies said the results were in line with its model and sees the company as well placed to benefit from rising capacity on the freight corridor network.
A key part of that view is the upcoming Indore inland container depot, which is under construction and is expected to add about 1,20,000 TEUs of capacity once completed, with management targeting 2028. Jefferies is also building in 11% annual growth in rail volumes between FY26 and FY30, and projects EBITDA rising from Rs 479.8 crore in FY26 to Rs 518.8 crore in FY27, Rs 593.4 crore in FY28 and Rs 644.5 crore in FY29.
Still, the brokerage flagged risks. It pointed to rising competition at key depot locations and possible delays in capacity expansion, both of which could temper the pace of growth. Even so, with the western freight corridor now fully operational and India continuing to prioritise rail freight, Gateway Distriparks appears to have a clearer growth runway than it did only a few years ago.
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