VRL Logistics Limited has informed the Exchange about Transcript
VRLLOG · price
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VRL Logistics reported Q1 FY26 total income growth of around 1% year-on-year, with EBITDA margin holding steady at approximately 21%. Net profit surged to about Rs. 50 crore from Rs. 13 crore in the same quarter last year, translating to a PAT margin of nearly 7%. Volumes declined around 12% YoY as the company exited low-margin freight contracts following price rationalisation. Management expects another 8-9% volume decline in Q2, with tonnage matching last year in Q3 (festive season) and growth returning in Q4. Full-year FY26 volumes are expected to be flat versus last year, while FY27 should see 7-8% volume growth. Fuel costs improved sharply, falling to 25% of total income from 29%, helped by higher internal procurement (41.5% vs 33%) and lower procurement prices (Rs. 83/litre vs Rs. 86/litre). The fleet stood at 5,949 vehicles with 1,241 branches and 50 transshipment hubs. Capex in Q1 was around Rs. 15 crore and is being held back until volumes stabilise.
Margins are expected to compress from the current 21% to around 19% in Q2 and 18% in subsequent quarters due to salary increments (2-3% of revenue impact), though profitability remains healthy. The company's deliberate exit from unprofitable contracts is hurting short-term volumes but is aimed at sustaining long-term profitability. Investors should expect muted volume growth in FY26 with margin pressure, followed by a recovery in FY27.