Tiger Logistics — Q4 FY25 earnings call

Call held 29 May 2025

Management summary

Tiger Logistics reported a strong FY25 with sustainable margins, driven by successful diversification and new ventures like TiGreen and CUBOX. The company is optimistic about FY26, targeting 15-18% revenue growth, with significant contributions expected from government and PSU projects. Management is focused on scaling existing new projects and aims for a top-five position in the Indian logistics market within 3-4 years.

Highlights

  • EBITDA margin stood at 6.3% and PAT margin at 5.6% for FY25, deemed sustainable due to business diversification.

  • Company aims for 15-18% top-line revenue growth for FY26.

  • PSU and government projects are expected to grow by at least 15% in FY26.

  • New ventures like 'TiGreen' (renewable energy) and 'CUBOX' (LCL product) are performing well and are key growth drivers.

  • Management targets becoming a top five logistics company in India within 3-4 years.

  • The India-US trade lane shows increased business enquiries, with the tariff war stabilizing.

  • Diversification strategy has successfully reduced dependence on a few top customers.

Key financials

  1. EBITDA Margin 6.3%
  2. PAT Margin 5.6%

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

Revenue

  • Top-line Revenue Growth Revenue · FY26 · High confidence 15-18%
    I think the whole plan is that on the top line we grow by 15% to 18% that is what we are aiming to do and let us hope for the best.

    — Harpreet Singh Malhotra

  • PSU and Government Projects Growth Revenue · FY26 · High confidence at least 15%
    I think we are expecting good numbers, good business from the PSU and government projects while continuing this upward trend, I think we will be growing by at least 15% in this sector also.

    — Harpreet Singh Malhotra

  • Continuous Annual Growth Revenue · every year · High confidence 15% to 18%
    we are continuously adding new projects, new verticals in our line of business and the whole idea is that to continuously grow by 15% to 18% every year.

    — Harpreet Singh Malhotra

Market Share

  • Position in Indian Logistics Market Market Share · next three to four years · Medium confidence top five logistics company
    I would say in the next three to four years we want to be in the top five logistics company in India.

    — Harpreet Singh Malhotra

Partnership

  • Government Sector Partner Status Partnership · next three to four years · Medium confidence favorite partner
    also in the government sector we want to be their favorite partner, especially in the PSUs and other government companies.

    — Harpreet Singh Malhotra

What to watch in Q1 FY26

Overall Revenue Growth

next quarter
Current Aiming for 15-18% growth
Target Progress towards 15-18% top-line growth

Why it matters

Verifying the company's ability to achieve its stated top-line growth target is crucial for assessing execution.

I think the whole plan is that on the top line we grow by 15% to 18% that is what we are aiming to do and let us hope for the best.

Risks & concerns

  • Slow acceptance of digital platforms in the industry

    medium

    Acceptance of digital platforms like Freight Jar is slow in the overall industry, despite its benefits for opening new business doors for the company.

    Management acknowledged

  • Choppy business scenario in Q4 FY25

    low

    The January to March 2025 period was 'little choppy' due to tariffs and uncertainties, but the company managed well due to diverse exposure.

    Management acknowledged

  • US tariff war impact

    low

    The tariff war is 'more or less stabilized' and 'no more a threat' for the India-US business.

    Management downplayed

Q&A highlights

6 direct, 1 evasive
Sustainability of EBITDA and PAT margins Direct
we have consistently been maintaining these margins. The reason being that we have diverse portfolio of our business. If one business goes down, we are able to panel the other.

Management attributes margin stability to business diversification, addressing concerns about quarterly fluctuations.

Asked by Aditya

Impact of US tariffs on India-US trade lane Direct
overall there has not been any major impact on our business as far as the India-US trade lane is concerned. In fact, we are happy because globally people are at least, the US buyers are looking at India more seriously now.

Management provides a positive outlook on the India-US trade lane, indicating no adverse impact from tariffs and increased business enquiries.

Asked by Aditya

Upward movement to two-digit EBITDA margin Evasive
No, I do not want to speculate on these things that there will be two digit numbers. I would rather do the business and keep continuously stably growing and consistently growing.

Management avoids giving specific targets for higher EBITDA margins, emphasizing stable and consistent growth over speculative numbers.

Asked by Aditya

Decline in revenue share from top five customers and diversification strategy Direct
it is a concerted effort from our side, not to depend on few customers but to have a diverse portfolio of customers. So, we have been making that effort from last few quarters that our business is diversified and that is the reason if our traditional business is down, we are able to pick up from the new business.

Confirms a deliberate and successful strategy to diversify the customer base, reducing concentration risk.

Asked by Aditya

Revenue guidance for FY26 Direct
I think the whole plan is that on the top line we grow by 15% to 18% that is what we are aiming to do and let us hope for the best.

Provides a clear quantitative target for top-line revenue growth for the upcoming fiscal year.

Asked by Arup Dey

Revenue targets for new LCL brands (CUBOX) and expansion strategy Direct
CUBOX is a new product for LCL... it has just been three months and market has accepted the product in a very positive way and in coming quarters also this is going to contribute in a big way, in a good way to our whole revenue.

Highlights the positive reception and expected significant contribution of the new CUBOX product to overall revenue growth.

Asked by Madhu Sharma

Cost and efficiency gains from Freight Jar 2.0 and digital acceptance Partial
though the acceptance on the digital part is a little low. But what is happening is that through freight jar we are able to open a lot of doors for new businesses.

Acknowledges slow industry adoption of digital platforms but emphasizes Freight Jar's role in generating new business opportunities for the company.

Asked by Madhu Sharma

Long-term business vision and operating leverage Direct
in the next three to four years we want to be in the top five logistics company in India... every vertical contributes to its own growth but at the same time also it is able to service the other vertical as well like LCL... So yes, overall definitely this is there.

Outlines an ambitious long-term market position goal and confirms the presence of operating leverage through cross-vertical support.

Asked by Arup Dey

2 min read 6 chapters

Detailed narrative

Q4 & FY25 Business Overview and Performance

The business scenario from January to March 2025 was described as 'little choppy' due to tariffs and uncertainties. However, Tiger Logistics successfully navigated these challenges, leading to a 'very good year' overall. The company's diverse exposure across various sectors and new initiatives contributed to this resilience. Management noted that the import business is performing very well, and the tariff war on the India-US business front has largely stabilized, with increased business enquiries expected.

New Ventures and Diversification Strategy

Tiger Logistics has initiated several new ventures that are now showing results. Key among these are 'TiGreen', a renewable energy project, and 'CUBOX', a new Less than Container Load (LCL) product, both of which are performing well. The company plans to scale up these new projects and invest more time and resources into them. This diversification strategy has also led to a deliberate reduction in dependence on a few top customers, creating a more diverse customer base and mitigating risks.

Margin Sustainability and Growth Outlook

The company reported an EBITDA margin of approximately 6.3% and a PAT margin of 5.6% for FY25. Management expressed confidence in maintaining these margins due to the diversified business portfolio, which allows the company to offset underperformance in one area with strength in another. While not speculating on achieving two-digit EBITDA, the focus remains on continuous, stable, and consistent growth.

FY26 Revenue and Sector-Specific Targets

For FY26, Tiger Logistics aims for a top-line revenue growth of 15% to 18%. This growth is expected to be significantly supported by new products like CUBOX. Additionally, the government projects and Public Sector Undertakings (PSU) vertical, which has performed very well, is anticipated to grow by at least 15% in FY26, with the company aspiring to be a 'favorite partner' in this sector.

Long-term Vision and Strategic Focus

Looking ahead three to four years, Tiger Logistics aspires to be among the top five logistics companies in India. This long-term goal is underpinned by a strategy of continuously adding new projects and verticals, aiming for 15-18% annual growth. The company is also keenly focusing on key trade lanes such as India-US and China-India, alongside strengthening its LCL business, which is seen as a crucial smaller business segment.

Digital Adoption and Operating Leverage

The company's digital platform, 'Freight Jar', is seen as a tool to open doors for new businesses, despite acknowledging that the overall industry's acceptance of digital solutions is 'very slow'. Management also indicated the presence of operating leverage, where each vertical contributes to its own growth while also supporting other verticals, such as LCL supporting other segments and TiGreen/Freight Jar supporting the import side.

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