AVG Logistics Limited has informed regarding Disclosure of material issue
AVG · price
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AVG Logistics has received approval for long-term debt facilities of approximately ₹112 crore from two PSU banks to fund its capital expenditure plans for FY 2025-26. The funds will be used to purchase capital assets such as trucks and fleet additions to support long-term contracts with existing and new customers. The company expects these new assets to generate approximately ₹100 crore in annualized revenue, with full revenue contribution starting from FY 2026-27. The expansion will strengthen its Full Truck Load (FTL) and Partial Truck Load (LTL) services, cold chain capabilities, and green logistics initiatives including EV and LNG fleets. For reference, the company reported FY24 revenue of ₹491 crore, EBITDA of ₹109 crore, and profit after tax of ₹32 crore.
This is a positive development — the company has successfully raised growth capital from reputable PSU banks, signaling lender confidence in its business model. Shareholders can expect revenue and earnings growth from FY 2026-27 once the new assets are deployed, though near-term margins may be impacted by depreciation and interest costs during the ramp-up phase in FY 2025-26.