Tiger Logistics — Q3 FY26 earnings call

Call held 20 Feb 2026

Management summary

Tiger Logistics reported a strong Q3 FY26 in terms of volume growth, with a 9% QoQ and nearly 50% YoY increase, primarily driven by its TiGreen renewable energy vertical. Despite a dip in the top line due to historically low freight rates impacting its cost-plus model, the company is optimistic about future growth, especially in solar logistics. New ventures like CUBOX are breaking even but scaling slower than anticipated, while the hydrogen vertical is being approached cautiously due to market immaturity and high CAPEX.

Highlights

  • Overall business volume increased by 9% quarter-to-quarter and close to 50% year-on-year.

  • TiGreen vertical is performing very well, contributing over 40% to total revenue and growing 52% YoY in volume.

  • Successful deep selling in the import sector and good penetration in the pharma sector.

  • Management is very bullish about the coming quarter due to anticipated large CAPEX in the solar sector.

Concerns

  • Overall top line experienced a dip due to the lowest-ever freight rates, impacting revenue in the cost-plus model.

  • CUBOX (LCL model) is taking longer than expected to scale, though it is breaking even.

  • Air freight volume declined due to US tariff issues and geopolitical situations affecting European business.

  • Hydrogen vertical is progressing slowly due to high CAPEX requirements and an immature market.

Key financials

  1. Overall Volume Growth 0.09 decimal fraction +9%QoQ
  2. Overall Volume Growth 0.5 decimal fraction +50%YoY
  3. TiGreen Revenue Contribution 40%
  4. TiGreen Volume Growth 0.52 decimal fraction +52%YoY
  5. TiGreen Volume Growth 0.09 decimal fraction +9%QoQ

What they filed

Q1 FY27: revenue up 48.8%, net profit down 53.9% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue160 160 115 103 169 +5%139 −13%163 +42%153 +49%
EBITDA9 10 7 6 11 +27%8 −23%2 −77%3 −53%
Net profit8 8 6 5 9 +14%6 −29%2 −66%2 −54%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Guidance & targets

Volume

  • TiGreen Volume Growth Volume · future · Low confidence much further
    And we expect it to grow much further.

    — Harpreet Singh Malhotra

Revenue

  • Turnover and Revenues Revenue · coming quarters · Low confidence better
    I only pray that the freights get better so that everybody can see better turnover and better revenues in the coming quarters.

    — Harpreet Singh Malhotra

Business Growth

  • Overall Business Growth Business Growth · coming quarters · Low confidence further
    And so, we can expect some tailwinds in the coming quarters and expect the business to go further.

    — Harpreet Singh Malhotra

  • Overall Business Growth Business Growth · coming days · Low confidence good growth
    And, we look forward to good growth and good business in the coming days.

    — Harpreet Singh Malhotra

  • Overall Business Growth Business Growth · coming quarter · Low confidence very bullish
    So, we are very bullish about the coming quarter, where a lot of activities are happening, especially when the solar companies are looking at a big CAPEX in the next two quarters, and there will be a lot of plants and machinery which they will be importing.

    — Harpreet Singh Malhotra

  • Overall Business Growth Business Growth · coming days · Low confidence good growth
    And I am sure in the coming days, the company will be registering good growth because we are moving on a very steady growth path.

    — Harpreet Singh Malhotra

What to watch in Q4 FY26

Freight rate improvement and impact on turnover/revenue

Next quarter
Current Lowest ever freight levels in Q3 FY26, impacting top line
Target Improved freight rates leading to better turnover and revenues

Why it matters

Freight rates directly impact the company's top line due to its cost-plus model, and management is hoping for improvement.

I only pray that the freights get better so that everybody can see better turnover and better revenues in the coming quarters.

Risks & concerns

  • Geopolitical situation and US tariffs impacting EXIM business

    medium

    Turbulent export businesses due to US tariffs, geopolitical situation, and Gulf region constraints, though some issues are settling.

    Management acknowledged

  • Fluctuating freight rates impacting top line

    medium

    Overall top line dipped because freight in Q3 was the lowest ever, directly impacting revenue in a cost-plus model.

    Management acknowledged

  • CUBOX (LCL model) scaling slower than expected

    low

    CUBOX is taking longer to develop and catch on compared to initial expectations, though it is breaking even.

    Management acknowledged

  • Hydrogen vertical requires huge CAPEX and market is immature

    low

    Hydrogen involves huge CAPEX, and the market is still evolving and not mature, leading to a slow approach.

    Management cautious

Q&A highlights

5 direct, 1 evasive
Air freight revenue volume decline and its impact Direct
Air freight business decline is primarily because of the tariff issues, and the European business is going down and the tariff issues which are happening. So, people were not buying, especially the high fashion goods and garments and similar kinds of products which move primarily by air.

Explains the specific reasons for air freight decline, attributing it to external geopolitical and tariff issues, and clarifies it's not a core focus area.

Asked by Abhijeet Rao

Evolution of TiGreen vertical and hydrogen MOU Direct
TiGreen is doing very well for us. We are very bullish. The volumes are growing continuously. It is contributing more than 40% to our total revenue. And we expect it to grow much further. So, we have big plans for the TiGreen product because under that vertical, we are doing all solar logistics. On the hydrogen, we are not doing much in that. We are going slow because that involves huge CAPEX. The market is still evolving.

Highlights TiGreen's significant contribution and growth, while outlining a cautious, slow approach to the hydrogen vertical due to high CAPEX and market immaturity.

Asked by Abhijeet Rao

Management's view on stock price changes Evasive
I have no control over the stock price.

Management explicitly states a lack of control over the stock price, deflecting a question about market perception and future trajectory.

Asked by Abhijeet Rao

CUBOX LCL model's role in building a stable customer base compared to FCL Direct
CUBOX, as I had mentioned in my opening remarks, is now an year-old product. We have broken even in that. Though we are not making any big money, that is the market. Sometimes it takes time. That is more to it; it is a B2B business where we are catering to small and medium-sized freight forwarding and logistics companies.

Provides an update on the CUBOX venture, confirming it's breaking even but not yet a significant profit driver, and clarifies its B2B nature and long-term development.

Asked by Anshu Ojha

LCL profitability and its comparison to blended margins Partial
LCL, as we move forward, could have better margins. But as of now, I think my bet would always be on full container, FCL business only.

Indicates that LCL margins are not currently superior to FCL, reinforcing the company's primary focus on FCL for profitability in the near term.

Asked by Anshu Ojha

Growth strategy: organic vs. inorganic acquisitions Direct
No, we are very open. It is a good question. We are open to any inorganic acquisition, which we have also gone through that in an inorganic way also. But unfortunately, we have not been able to get a good company.

Reveals management's openness to M&A but highlights the challenge of finding suitable acquisition targets.

Asked by Roop Betala

Focus of potential acquisitions: domestic vs. international logistics Direct
No, we are only looking at somebody who is in international logistics. We ourselves are not present in the domestic, and we do not want to get into domestic logistics. So, we are looking at only companies that are doing international freight forwarding or logistics.

Clearly defines the M&A strategy to focus exclusively on international logistics, avoiding entry into the domestic market.

Asked by Roop Betala

2 min read 5 chapters

Detailed narrative

Q3 FY26 Performance Overview Amidst Headwinds

Tiger Logistics reported a 'good quarter' for Q3 FY26, achieving significant volume growth of 9% quarter-to-quarter and nearly 50% year-on-year. This growth was realized despite a turbulent geopolitical environment, including US tariffs and constraints in the Gulf region, which negatively impacted export businesses. The company noted a dip in its overall top line, attributing it to freight rates being the 'lowest ever' in recent years, a direct consequence of its cost-plus business model.

TiGreen and Import Sector Drive Volume Growth

The primary drivers for the increased volume were the company's strategic growth engines, particularly the TiGreen vertical, which focuses on the renewable and solar sectors. TiGreen is performing 'very well,' contributing over 40% to the company's total revenue and demonstrating robust volume growth of 52% year-on-year and 9% quarter-to-quarter. Additionally, the company's efforts in 'deep selling' within the import sector have begun to yield positive results, complementing its established businesses in the auto and government sectors.

Update on CUBOX and Cautious Approach to Hydrogen

The CUBOX LCL model, now a year old, has reached a break-even point and is generating some profits, though its scaling is slower than initially anticipated. Management expects it will require more time to fully develop and integrate with the overall full container business. Conversely, the hydrogen vertical is being approached with caution, with the company 'going slow' due to the 'huge CAPEX' involved and the market's current immature and evolving state.

Pharma Sector Penetration and Bullish Outlook for Solar Logistics

Tiger Logistics has successfully penetrated the pharma sector, particularly in the upper north region, where a new office opened six months ago has led to significant container exports for pharma and chemical clients. The company anticipates further growth in this area. Management expressed a 'very bullish' outlook for the coming quarter, driven by expected large CAPEX investments by solar companies, which will necessitate substantial imports of plants and machinery, a segment for which Tiger Logistics has already built capacity.

Inorganic Growth Strategy Focused on International Logistics

The company is open to inorganic acquisitions but has faced challenges in identifying 'good assets' among small to medium-sized logistics firms. Management clarified that its acquisition strategy is strictly confined to international freight forwarding or logistics companies. Tiger Logistics currently has no presence in domestic logistics and explicitly stated it does not intend to enter this segment, maintaining a clear focus on expanding its international footprint.

This is an AI-generated summary of a publicly available earnings call transcript.
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