Motilal Oswal Recommends Buying Container Corporation Stock, Target Price Rs 560

Container Corporation Posts Weak 4QFY26 Performance

Container Corporation (CCRI) has reported a disappointing set of results for the fourth quarter of fiscal year 2026 (4QFY26). According to the company's latest financials, revenue dipped 1% year-over-year (YoY) to INR22.5 billion, falling short of Motilal Oswal's estimate by 6%.

Key highlights of CCRI's performance in 4QFY26 include a 6% YoY increase in total volumes to 1.4 million Twenty-Foot Equivalent Units (TEUs). The company's EXIM (Export-Import) and domestic volumes also grew, with EXIM volumes increasing by 2% YoY to 0.107 million TEUs and domestic volumes rising by 19% YoY to 0.36 million TEUs. However, the blended realization declined by approximately 7% YoY to INR15,803 per TEU, with EXIM and domestic realizations standing at INR14,015 and INR21,112 per TEU, respectively.

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin came in at 18.6%, lower than Motilal Oswal's estimate of 22.4%. EBITDA itself declined by 3% YoY to INR4.2 billion, falling 22% short of the research firm's estimate. The company's Profit After Tax (PAT) also declined, dipping by 15% YoY to INR2.5 billion and falling 24% short of Motilal Oswal's estimate.

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The company's land license fee for fiscal year 2026 (FY26) stood at INR3.95 billion. In a separate development, the Board declared a dividend of INR1 per equity share, amounting to INR761 million.

Looking ahead, Motilal Oswal has revised its EBITDA estimates for FY27 and FY28, cutting them by 5-7% due to lower volume growth, weaker realization in EXIM and domestic business, and continued margin pressure. The research firm remains watchful of how the Dedicated Freight Corridor (DFC) connectivity translates to incremental volume growth for CCRI. It expects the company's revenue and EBITDA to clock a Compound Annual Growth Rate (CAGR) of 9% and 12%, respectively, over FY26-FY28. Motilal Oswal has reiterated its BUY rating on the stock with a revised target price of INR560, based on an Enterprise Value-to-Earnings Before Interest, Taxes, Depreciation, and Amortization (EV/EBITDA) multiple of 14x on FY28 estimates.