Financial Performance Highlights

Q4 FY26 Results (Year-on-Year Growth)

  • Total Revenue: ₹176.61 crores, up 19.4%
  • EBITDA: ₹34.72 crores, up 45.21%
  • EBITDA Margin: 19.66% (349 basis points expansion)
  • Profit After Tax (PAT): ₹10.71 crores, up 104.78%
  • PAT Margin: 6.06% (252 basis points expansion)

Full Year FY26 Results (Year-on-Year Growth)

  • Total Income: ₹582.48 crores, up 5.07%
  • EBITDA: ₹112.45 crores, up 14.27%
  • EBITDA Margin: 19.31%
  • Profit After Tax (PAT): ₹26.17 crores, up 22.71%
  • PAT Margin: 4.49%

Operational and Strategic Updates

Business Expansion Initiatives

  • Rail-based Liquid Logistics Entry: Successfully entered the rail-based liquid logistics segment, transporting chemicals and allied industry products
  • Land Acquisition: Strategically acquired land parcel in Tahliwal, Himachal Pradesh for warehouse expansion to enhance North India presence
  • Green Logistics Corridor: Collaboration with Nestle India and Ashok Leyland for deployment of CNG-powered vehicles on dedicated routes

Capex and Investment

  • FY26 Capex: ₹60+ crores invested
  • FY27 Capex Target: ₹50+ crores planned for growth initiatives
  • Vehicle Addition: Added 100+ vehicles in FY26, targeting similar addition in FY27 including CNG, EV, and LNG vehicles

New Contracts and Ventures

  • Haldiram Contract: Secured 3-year contract (extendable to 5 years) for 100 dedicated vehicles serving Maharashtra, Gujarat, Odisha, Chhattisgarh, Telangana, Andhra Pradesh, and Karnataka routes
  • Carbonlite Logistics JV: Formed 50:50 joint venture with Baidyanath Group for LNG transportation services, operations expected to commence within one month

Financial Clarifications

Lease Reversal Gain

  • Amount: ₹21.19 crore recognized in Q4 FY26
  • Nature: Management clarified this represents operational income per Ind AS 116 accounting requirements for long-term lease contracts
  • Tax Treatment: Not taxable as corresponding expenses were already deducted in previous years
  • Recurrence: Considered part of normal operations as the company regularly enters into long-term lease agreements

Growth Guidance and Outlook

FY27 Targets

  • Revenue Growth: 15-20% year-on-year growth expected
  • Industry Growth Benchmark: 15-20% industry growth rate referenced
  • Growth Drivers: Existing customer base, new customer pipeline, and expansion into new business segments

Long-term Vision (2030)

  • Revenue Target: ₹1,250 crores turnover by 2030
  • Liquid Logistics Expansion: Plan to expand from current 180 container tankers to 1,800 tankers (8-10 trains by 2030)

Business Segments and Diversification

The company operates across five key segments:

1. Road Transportation

2. Rail Transportation

3. Cold Chain

4. Warehousing and Supply Chain Management

5. Alternative Fuel Vehicles (EV, CNG, LNG)

6. Liquid Logistics (newly added)

Market Focus Industries

Target sectors for growth include:

  • FMCG
  • Food and Beverage
  • Cement
  • Retail
  • Telecom
  • Steel
  • Automotive
  • Pharma
  • Chemical
  • Industrial sector
  • Solar power industries
  • Liquor/Breweries

Operational Strategy

Key focus areas include:

  • Improving asset utilization and sweat
  • Operational excellence and cost management
  • Customer retention and wallet share expansion
  • Technology-enabled operations
  • Sustainable logistics initiatives
  • Multi-modal integration for efficiency

Q&A Session Highlights

Fuel Price Impact

  • Diesel price increases have minimal impact due to fuel escalation clauses in customer contracts
  • Rate adjustments typically occur within 1-2 weeks of price changes

EV Vehicle Strategy

  • EV trucks have operational cost advantages despite higher asset cost
  • Current range: 150-200 km per charge, with infrastructure planning for longer routes
  • Profitability better than diesel vehicles due to lower operating and maintenance costs

Liquid Logistics Business

  • High demand segment with limited competition
  • Expansion plans include purchasing from China or leasing in India
  • Third rake targeted for FY27

Result Delay Explanation

  • Delay attributed to procedural and audit requirements due to business growth
  • Additional time needed for detailed reviews and branch consolidation