India’s Ports & Logistics sector poised for revival in FY27: Jefferies
After a subdued performance in 2025, India’s ports and logistics sector appears to be on the cusp of a recovery, supported by a favourable base, fresh capacity additions and the gradual rollout of critical infrastructure linkages. According to global brokerage firm Jefferies, these factors could set the stage for a rebound in volumes beginning FY27.
In its 2026 outlook, Jefferies noted that ports and logistics stocks significantly underperformed the Nifty 50 over the past year. The underperformance was driven by slower-than-expected cargo volumes, tariff-related uncertainty, and weak coal demand, all of which weighed on investor sentiment. With many of these headwinds now easing, the brokerage expects volume growth to regain momentum from the first quarter of FY27.
Volumes Expected to Recover
Container traffic, which contributes around 22% of total industry throughput, grew by only 6% year-on-year during the first eight months of FY26—well below the historical average growth rate of 10–11%. Coal volumes also remained muted, rising just 2%, largely due to subdued power demand. Jefferies believes these trends are likely to reverse as domestic demand normalises and global trade conditions stabilise. The possibility of an India–US trade agreement could further strengthen the outlook for export-import cargo.
Infrastructure Connectivity as a Key Catalyst
A major positive trigger highlighted by Jefferies is the expected connectivity of the Dedicated Freight Corridor (DFC) to Jawaharlal Nehru Port Authority (JNPA) by the end of Q1 FY27. This development is anticipated to significantly enhance rail evacuation efficiency, lower logistics costs, and provide a sustained boost to container traffic.
Overall, Jefferies maintains that improving fundamentals, easing uncertainties and long-awaited infrastructure upgrades could help India’s ports and logistics sector chart a stronger growth trajectory in the coming years.
