This article first appeared on GuruFocus.
Total Revenue (Q4 FY26): INR 176.61 crore, a growth of 19.4% year on year.
EBITDA (Q4 FY26): INR 34.7 crore, an increase of 45.21% year on year.
EBITDA Margin (Q4 FY26): Expanded by 349 basis points to 19.66%.
Profit After Tax (Q4 FY26): INR 10.71 crore, a growth of 104.78% year on year.
PAT Margin (Q4 FY26): Improved by 252 basis points to 6.06%.
Total Income (FY26): INR 582.48 crore, a growth of 5.07% year on year.
EBITDA (FY26): INR 112.45 crore, up 14.27% year on year.
EBITDA Margin (FY26): Improved to 19.31%.
Profit After Tax (FY26): INR 26.17 crore, a growth of 22.71%.
PAT Margin (FY26): Expanded to 4.49%.
Release Date: June 30, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
AVG Logistics Ltd (NSE:AVG) reported a strong financial performance for FY26, with a 19.4% year-on-year revenue growth in Q4 and a 45.21% increase in EBITDA.
The company expanded its multimodal capabilities by entering the rail-based liquid logistics segment, targeting high-growth markets.
A strategic acquisition of land in Himachal Pradesh for warehousing purposes is expected to enhance regional presence and operational efficiencies.
Collaboration with Nestle India and Ashok Leyland for CNG-powered vehicles demonstrates a commitment to sustainable logistics and reduced carbon emissions.
The company has a diversified business model across multiple logistics segments, reducing dependence on any single service line or customer segment.
Negative Points
The company faces challenges from global economic uncertainties and evolving market conditions, which may impact short-term performance.
There is a significant increase in diesel prices, although AVG Logistics Ltd (NSE:AVG) has fuel escalation clauses in contracts to mitigate this impact.
The company recognized a one-time lease reversal gain of INR21 crore, which may not be a recurring income, affecting the perception of operational results.
The financial results for Q4 were delayed due to procedural and audit-related requirements, indicating potential inefficiencies in financial reporting.
The expansion into new segments and infrastructure requires significant capital expenditure, with INR60 crore spent in FY26 and a projected INR50 crore-plus for FY27, which could strain financial resources.
Q & A Highlights
Q: What revenue growth is AVG Logistics targeting for the next financial year? A: Sanjay Gupta, Managing Director and CEO, stated that AVG Logistics is targeting a 15% to 20% revenue growth for FY27, based on their current order book, customer pipeline, and expansion into new business segments.
Story Continues
Q: What was the CapEx for FY26, and what is projected for FY27? A: Rajesh Rohilla, CFO, mentioned that the CapEx for FY26 was over INR 60 crore. For FY27, they are targeting a CapEx of over INR 50 crore to support growth, including the addition of new vehicles and technology upgrades.
Q: Can you provide details on the INR 100 crore CapEx plan? A: Rajesh Rohilla explained that the CapEx includes investments in liquid logistics, CNG, EV, and LNG vehicles, as well as regular vehicles to meet customer demands. They aim to add over 100 vehicles annually.
Q: How is AVG Logistics addressing the impact of rising diesel prices? A: Sanjay Gupta noted that most customer contracts include a fuel escalation clause, allowing AVG Logistics to adjust rates in response to diesel price increases, minimizing the impact on their business.
Q: What are AVG Logistics’ plans for green energy and alternative fuel vehicles? A: Sanjay Gupta highlighted their commitment to sustainability by investing in CNG, LNG, and electric vehicles. They are focusing on long-term contracts to justify the investment in these alternative fuel vehicles.
Q: What is the company’s strategy for the liquid logistics segment? A: Sanjay Gupta explained that liquid logistics involves transporting liquid materials using tankers. They plan to expand their fleet from 180 to 1,800 tankers, leveraging both purchases and leases.
Q: Can you elaborate on the Haldiram contract? A: Sanjay Gupta shared that AVG Logistics secured a three-year contract with Haldiram Nagpur for 100 dedicated vehicles, with potential expansion, to support their distribution across several Indian states.
Q: What industries is AVG Logistics targeting for future growth? A: Sanjay Gupta mentioned targeting industries such as FMCG, beverages, liquor, steel, cement, pharma, chemicals, and solar power, which require significant transportation for raw materials and finished goods.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.