AVG Logistics Limited — Q3 FY26 earnings call

Call held 20 Feb 2026

Management summary

AVG Logistics reported a stable Q3 FY26 with revenues of ₹134.08 crores and an EBITDA margin of 20.29%. For the nine-month period, revenue was ₹402.13 crores with a 19.33% EBITDA margin. The company is strategically expanding into high-margin segments like liquid logistics, cold chain, and warehousing, backed by green logistics initiatives and significant capex plans for fleet and infrastructure expansion. Management anticipates 15-20% overall growth for FY27.

Highlights

  • Q3 FY26 Revenue from operations stood at ₹134.08 crores.

  • Q3 FY26 EBITDA margin was healthy at 20.29%.

  • 9M FY26 Revenue from operations reached ₹402.13 crores, with an EBITDA margin of 19.33%.

  • Secured a 6-year lease contract for operating a Parcel Cargo Express Train (PCET) from Indian Railways.

  • Commercial deployment of 55-ton electric trucks for Tata Steel, advancing green logistics.

Key financials

2 periods

Q3

  • Revenue from Operations
    ₹134.08 Cr
  • EBITDA
    ₹27.2 Cr
  • EBITDA Margin
    20.3%
  • PAT
    ₹5.4 Cr

9M

  • Revenue from Operations
    ₹402.13 Cr
  • EBITDA
    ₹77.73 Cr
  • EBITDA Margin
    19.3%
  • PAT
    ₹15.46 Cr

What they filed

Q1 FY27: revenue up 5.1%, net profit up 21.9% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue138 142 147 124 143 +3%134 −6%156 +6%131 +5%
EBITDA23 26 24 23 24 +3%26 +1%13 −45%19 −19%
Net profit5 5 5 5 5 −6%5 −2%11 +102%6 +22%
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.

Capital allocation

medium confidence
  • Capex ₹65 Cr Primarily through own capex/internal accruals for cold chain and warehousing, with some contracts being asset-light (without capex).
    • Fleet addition for cold chain logistics
    • Warehousing capacity expansion
    we believe next financial year will be very good for the Company as we will start getting benefit of the capex done by the company in this financial year in next financial year. (Page 4); So because this business can be done only with our own capex only. (Page 5); We entered into long term contract with renowned FMCG company for supply chain management services without any capex with decent margin. (Page 4)

Guidance & targets

Revenue

  • FY26 Revenue Revenue · FY26 · Medium confidence ₹560-570 crores

    Previously ₹550 crores (last year) → ₹560-570 crores

    FY '26 is more or less actually stable only, say, we have touched INR400 crores now and INR170 crores, INR160 crores maybe another March end. So say, it will be last year it was INR550 crores, so maybe INR560 crores, INR570 crores.

    — Sanjay Gupta

  • Overall Revenue Growth Revenue · year-on-year basis · Medium confidence 15% to 20%
    overall, we are definitely 15% to 20% growth we are expecting year-on-year basis.

    — Sanjay Gupta

  • Growth from Existing Clients Revenue · next year · Medium confidence 7% to 8%
    Because as our customers are increasing their business by 10% or 7%, so we are adding 7% to 8% business we will get our from our existing client.

    — Sanjay Gupta

  • Growth from Additional Clients Revenue · next year · Medium confidence 7% to 10%
    And around 7%-8% or 10% will come with the additional client.

    — Sanjay Gupta

  • Cold Chain Revenue Revenue · next year (FY27) · Medium confidence ₹135-150 crores

    From ₹80 crores (current month) today

    That will be done till next year 27 and if it is not 150 then it will be around 135 or 140 it will be done by next year.

    — Sanjay Gupta

Capacity

  • Warehousing Capacity Capacity · next year · Medium confidence 15 lakh square feet

    From 9 lakh square feet today

    And last year, we have been allotted a land in Odisha and now we are talking to the Guwahati and Patna also. So as of now, we are managing around 9 lakh square feet. And our target for next year is around 15 lakh square feet. 5 lakh square feet is coming up in Guwahati and Patna.

    — Sanjay Gupta

Fleet

  • Cold Chain Vehicle Addition Fleet · next year · Medium confidence 100 to 150 vehicles
    And this year, next year, we are trying to add around 200 vehicles. (Page 5); we will make 100 to 150 vehicles and whatever vehicles are there in this with us in that there are some small segment vehicles. (Page 12)

    — Sanjay Gupta

  • Liquid Logistics Train Addition Fleet · next year · Medium confidence 5 to 6 trains
    And we are planning to make 5, 6 trains next year for this liquid logistics.

    — Sanjay Gupta

What to watch in Q4 FY26

Overall Revenue Growth

FY27
Current 9M FY26 Revenue ₹402.13 crores
Target 15-20% YoY growth for FY27

Why it matters

This is the management's key growth target, indicating overall business expansion and market penetration.

overall growth, we are expecting around 15% to 20%.

Risks & concerns

  • Global market downturn and volatility

    medium

    Overall market is down due to international policies, and global equity markets are volatile, impacting the logistics sector.

    Management acknowledged

  • Profitability impact from market volatility

    medium

    If the market becomes 'vital' (implying volatile or challenging), profitability could be questioned.

    Management acknowledged

  • Impact of regulatory changes (e.g., GST)

    low

    GST changes previously caused market fluctuations, but the market is now stable.

    Management acknowledged

  • Risk of wrong strategic decisions

    low

    Wrong decisions could immediately impact and reduce profits.

    Management acknowledged

Q&A highlights

8 direct
Most profitable logistics segment Direct
Definitely, the profit margin and less competition in the liquid logistics and cold chain. So now we are trying to, we have brought 2 trains from import of tankers, which we carry our liquid logistics. And cold chain business is also increasing, which will give us more, increase our profitability.

Identifies the strategic focus areas for higher profitability and growth.

Asked by Abhishek Sharma

Scaling strategy for liquid logistics and cold chain Direct
we are trying to add around 200 vehicles. And after that, we will get more milk dairy product, fruit vegetables and chocolate business in the supply chain. And liquid logistics also 2 bigger plant, jumbo plant is coming by Reliance and Adani Group. And there is a huge demand and only 3, 4 service provider is there in India as of now. So we are one of them. And we are planning to make 5, 6 trains next year for this liquid logistics.

Provides specific numerical targets for fleet and infrastructure expansion in key growth segments.

Asked by Abhishek Sharma

Warehousing capacity utilization and margins Direct
It is 100% only. So we are in warehousing, we are using 2 type of model. One is our own warehouse and one is our lease model. So on warehouse, we have around 2.25 lakh square feet that is situated in Goa, Mysore, Agartala and another warehouses, we are in Ghaziabad, Panipat. ... Its margin is better compared to the truck business. But 9 lakh square feet we are already have. ... And margin is around 25% to 30%.

Clarifies the high utilization and strong profitability of the warehousing segment, along with current capacity and expansion plans.

Asked by Abhishek Sharma

Long-term stock performance and market volatility Direct
the company was established in 2010 with a business of around INR5 crores. And now we are touching around INR550 crores, INR560 crores. And we are upgrading ourself according to the market requirement. So as and when now market is asking for the alternative fuel, train movement, liquid logistics, supply chain management, and trucking business is also there. ... Because as of now our all the customers are FMCG and marquee customers which they are growing around 7 to 8% year-on-year basis.

Management's perspective on sustained growth, adaptability to market changes, and client-driven strategy despite market volatility.

Asked by Abhishek Sharma

FY27 Capex budget and expected returns Direct
So, we are adding the fleet and capex according to the customer requirement. Because as our customers are increasing their business by 10% or 7%, so we are adding 7% to 8% business we will get our from our existing client. And around 7%-8% or 10% will come with the additional client.

Links capex directly to customer demand and provides specific growth expectations from existing and new clients.

Asked by Priya Jain

Current fleet utilization Direct
Yes. My fleet utilization is around 97% to 98%. Because few vehicles are always in breakdown. Out of 900 vehicle we have, so around 20, 30 vehicles is maintenance and some accident cases. So more or less around 98% vehicles are on road only on a daily basis.

Demonstrates high operational efficiency and asset utilization.

Asked by Priya Jain

Company valuation and growth trajectory Direct
Yes. We are doing hard working and trying my best to increase the business and different segment and like cold chain, supply chain management, rail business. So overall, we are definitely 15% to 20% growth we are expecting year-on-year basis. ... And logistics business, government has given the budget of INR12 lakh crores. So, lot of this road conditions are better and highways are constructed by the government.

Management's confidence in achieving significant growth, supported by strategic initiatives and government infrastructure spending, despite current market valuation.

Asked by Priya Jain

Market cap discrepancy and cold chain potential Direct
You are absolutely right that for this separately and will do a planning after March closing that can we do different company, can we do something else by talking to the consultant who will permit us with the rules and regulation of the government and I think this is a good idea that we will make a separate cold chain.

Acknowledges the market's undervaluation relative to peers and indicates a strategic move to potentially spin off or separate the cold chain business to unlock value.

Asked by Vikas Verma

2 min read 6 chapters

Detailed narrative

Q3 & 9M FY26 Financial Performance Overview

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%.

Strategic Expansion into New Verticals

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.

Green Logistics Initiatives

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.

Operational Efficiency and Asset Utilization

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.

Outlook and Growth Drivers

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.

Capital Expenditure and Future Plans

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.

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