AVG Logistics

AVG Logistics reported a stable performance for Q3 FY26, with revenue from operations reaching ₹134.08 crores and an EBITDA margin of 20.29%. PAT for the quarter stood at ₹5.40 crores, representing a 4.03% margin. For the nine-month period, the company achieved revenue from operations of ₹402.13 crores, with an EBITDA of ₹77.73 crores and a healthy margin of 19.33%. The PAT for 9M FY26 was ₹15.46 crores, with a margin of 3.84%.

The company is actively expanding into high-margin and less competitive segments such as liquid logistics, cold chain, and warehousing. It currently operates 2 trains for liquid logistics and plans to add 5-6 more next year. For cold chain, the fleet comprises around 450 vehicles, with plans to add 100-150 more next year. Warehousing capacity is currently 9 lakh square feet, with a target to reach 15 lakh square feet by next year, including 5 lakh square feet in Guwahati and Patna. A significant 6-year lease contract for a Parcel Cargo Express Train (PCET) from Indian Railways was also secured.

AVG Logistics is committed to sustainable and cost-efficient logistics. A key milestone in Q3 FY26 was the introduction and expansion of its LNG-powered fleet. Furthermore, the company became the first in India to commercially deploy 55-ton electric trucks from Tata Motors at Tata Steel's premises for intra-plant and short-haul deliveries, supporting carbon reduction goals.

The company maintains high operational efficiency, with fleet utilization reported at 97-98%, accounting for a small percentage (2-3%) for maintenance and accidents. Management emphasizes improving asset utilization and reducing operational costs. The strategy includes providing comprehensive 4PL and 5PL services, encompassing warehousing, supply chain management, and transportation, to enhance business and profitability.

Management anticipates an overall growth of 15-20% year-on-year. This growth is expected to be driven by existing clients (7-8%) and additional clients (7-10%). The Indian logistics industry is undergoing structural transformation, supported by sustained policy, infrastructure expansion, and increasing formalization of supply chains. The government's record capital expenditure outlay of approximately ₹12.2 lakh crore in the Union Budget FY26-27 is expected to improve transit times and asset utilization, reducing overall logistics costs.

AVG Logistics has made approximately ₹65 crores in capex till date in FY26. The company plans to add 5 lakh square feet to its warehousing capacity by FY27, targeting a total of 15 lakh square feet. For the cold chain segment, the goal is to add 100-150 vehicles by next year, aiming for cold chain revenue of ₹135-150 crores by FY27. The company is also exploring the possibility of making the cold chain business a separate entity to unlock value.