Blackbuck Limited — Q1 FY26 earnings call

Call held 8 Aug 2025

Management summary

Zinka Logistics reported a strong Q1 FY26, with total revenues growing 63% YoY to INR160 crores and adjusted EBITDA increasing fourfold to INR47 crores. The company achieved a PAT of INR34 crores and generated INR63 crores in operating cash flow. Growth was driven by both core businesses (payments and telematics) and newer SuperLoads offerings, with management emphasizing continued investment in new areas and consistent operating leverage.

Highlights

  • Total revenues grew ~63% YoY to ~INR160 crores.

  • Adjusted EBITDA grew ~4x YoY to ~INR47 crores.

  • PAT stood at ~INR34 crores.

  • Net revenues grew 43% YoY to ~INR132 crores.

  • Operating cash flow was ~INR63 crores.

Concerns

  • New business disclosures are limited until they reach 20-30% of overall revenues.

  • Q1 and Q2 are seasonal months with muted growth for truck operators.

Key financials

  1. Total Revenues ₹160 Cr +63%YoY
  2. Revenue from Operations ₹144 Cr +56%YoY
  3. Net Revenues ₹132 Cr +43%YoY
  4. Adjusted EBITDA ₹47 Cr +300%YoY
  5. EBITDA (pure) ₹40 Cr +400%YoY
  6. PAT ₹34 Cr
  7. Operating Cash Flow ₹63 Cr
  8. Contribution Margin 92.6%

What they filed

Q1 FY27: revenue up 41.7%, net profit up 23.5% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue99 114 122 144 151 +53%172 +51%185 +52%204 +42%
EBITDA15 30 40 40 37 +147%45 +50%45 +13%50 +25%
Net profit-269 -48 280 34 29 +111%32 +167%66 −76%42 +24%
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.

Segment breakdown

Share of Revenue
₹143 Cr Total
  • Core Businesses (Payments & Telematics) ₹120 Cr 83.9%
  • Growth Business (SuperLoads + Other) ₹23 Cr 16.1%

Guidance & targets

Business Growth

  • SuperLoads exponential growth Business Growth · another 3 to 4 quarters · Medium confidence exponential growth
    another 3 to 4 quarters before a very exponential growth to come into this particular business.

    — Rajesh Kumar Yabaji

  • Significant movement in new businesses Business Growth · 4 to 6 quarters down the line · Medium confidence significant movement
    4 to 6 quarters down the line is where you can see significant movement in some of these businesses, not in the immediate future.

    — Rajesh Kumar Yabaji

Operating Expenses

  • Employee cost growth Operating Expenses · next quarters · High confidence inflationary growth
    I would guide you to not assume any squeezing out of this, you should only assume inflationary growth of these particular expenses.

    — Rajesh Kumar Yabaji

Taxation

  • Cash tax outgo Taxation · a few quarters from now · High confidence only from a treasury income point of view
    think of tax outgo per se only from a treasury income point of view, at least for a few quarters from now.

    — Satyakam G.N.

  • Effective tax rate Taxation · High confidence 24%, 25%
    effective tax rate would be 24%, 25%

    — Satyakam G.N.

What to watch in Q2 FY26

SuperLoads exponential growth

next 3-4 quarters
Current very nascent, very creation zone
Target exponential growth

Why it matters

SuperLoads is a key new growth driver, and its ability to achieve exponential growth will be critical for future revenue expansion.

another 3 to 4 quarters before a very exponential growth to come into this particular business.

Risks & concerns

  • Limited new business disclosures

    medium

    Management is intentionally limiting disclosures on new businesses until they mature (20-30% of overall revenue), which could obscure early performance indicators for investors.

    Analyst acknowledged

  • Seasonal muted growth in Q1 and Q2

    low

    Q1 and Q2 are seasonally weaker for truck operator activity and movement, leading to lower growth numbers compared to Q3 and Q4.

    Management acknowledged

  • Competitive intensity in loads marketplace

    low

    Management believes the market itself is the biggest challenge and their established supply network provides a significant advantage against new entrants.

    Analyst downplayed

  • Potential impact of FASTag for commercial vehicles on tolling business

    low

    While a change could impact tolling, management believes the risk is minimal and speculative, as the government has not altered commercial vehicle tolling policies.

    Analyst acknowledged

Q&A highlights

2 direct, 2 evasive
Transparency on new business performance and SuperLoads GTV Evasive
I won't be able to comment on your numbers because as a principle, as you've always kept out that we will probably keep the disclosures of new businesses are fairly limited, and we will -- probably till the time they become a little bit more mature or probably 20%, 30% of the overall revenues, we would not be disclosing probably in greater details.

Analysts are seeking more granular data on new growth drivers, but management is holding back until these segments achieve significant scale, indicating a cautious approach to early-stage reporting.

Asked by Sachin Dixit

SuperLoads acquisition economics and take rate Partial
in the playbook development phase, if we really like reduce the bar to really create numbers, what happens is that the ability to differentiate between the real muscle, which is being built out versus really the calorie growth because the calorie growth may appear as a strong growth, and you really would be able to mistake that with the muscle and then there, the quality of business development essentially goes down, right?

Management emphasizes building sustainable 'muscle' over quick 'calorie growth' (revenue at any cost) for SuperLoads, suggesting a focus on long-term quality rather than aggressive, potentially unprofitable, customer acquisition in the initial phase.

Asked by Rishi Jhunjhunwala

Competitive intensity in loads marketplace Direct
I mean, basically, like if you have to draw a parallel, like probably it would be like a 2019 or 2020 of quick commerce where there's literally nobody doing anything in this space, right? That's point one. Point number two, is that the biggest competition in this market today is the market itself because it's a hard market to crack.

Management downplays competitive threats, asserting that the market itself is the biggest challenge and BlackBuck's 10-year experience in building supply provides a significant advantage in a nascent, difficult-to-crack market.

Asked by Abhisek Banerjee

Tax outflow and effective tax rate Direct
So a quick one on taxes. The current tax is the actual outlook. So that's about INR3.8 crores, which is on other income, right, which is on treasury income essentially. The other out of the total INR12 crores, that's INR8 crores is deferred tax. That's on accounting profits. It's not an actual outflow... effective tax rate would be 24%, 25%.

Management clarifies that the significant tax figure includes deferred tax and the actual cash tax outgo is much lower, primarily from treasury income, providing clarity on the company's tax strategy and future cash tax burden.

Asked by Abhisek Banerjee

Telematics growth rate discrepancy Evasive
I mean, sorry, we are not aware of the numbers you're talking about because we've never given the split out. But I think directionally, whatever you're asking, I think there may be an error because I think that was one of the question which was being asked during the call that in tolling because the overall GDP in payments has grown only by 20%, 29%, the growth will definitely not be 40% so is GPS growing much faster.

Management refutes the analyst's specific numbers for telematics and tolling, indicating a potential misunderstanding or miscalculation by the analyst, and reiterates that GPS growth is much faster, contributing to the blended 40% growth.

Asked by Nilesh Jain

2 min read 6 chapters

Detailed narrative

Strong Q1 FY26 Financial Performance

Zinka Logistics reported robust financial results for Q1 FY26, with total revenues reaching approximately INR160 crores, marking a significant 63% year-on-year growth. Adjusted EBITDA saw a fourfold increase to INR47 crores, while PAT stood at INR34 crores. The company also generated a healthy operating cash flow of INR63 crores, demonstrating strong profitability and cash generation.

Segmental Growth and Net Revenue Metrics

The company reclassified its business segments, with core businesses (payments and telematics) contributing INR120 crores, growing 41% YoY. Newer growth businesses, including SuperLoads, achieved INR23 crores in revenue, representing a 3-4x YoY growth. Net revenues, which account for the gross margin of SuperLoads, grew 43% YoY to INR132 crores and 8% QoQ, indicating broad-based expansion.

Consistent Operating Leverage and Profitability

Zinka Logistics continued to demonstrate strong operating leverage, with an 88% delivery on a year-on-year basis and 84% sequentially. The contribution margin remained stable at 92.6%, reflecting the quality of revenues. Management highlighted that profitability has consistently grown quarter-on-quarter, with adjusted EBITDA improving from a negative INR11 crores two years ago to a positive INR47 crores this quarter.

Strategic Investment in New Offerings

The company's business model focuses on continuously creating new offerings, leveraging its established platform and variabilized distribution network. Investments in platform and distribution were largely completed 18-24 months ago, enabling new offerings to be launched at incrementally zero cost. Management plans to continue aggressive scaling of newer business areas, with profits incorporating the costs of these new experiments.

SuperLoads Business Development and Market Strategy

The SuperLoads business, a key growth driver, is currently in a 'playbook development phase' and is expected to see exponential growth in the next 3-4 quarters. Management emphasized building sustainable growth over quick revenue gains. The company's strategy in the loads marketplace leverages its high market share among long-distance truck operators and its 10-year experience in a hard-to-crack market, focusing on strong value propositions like fulfillment, multi-lane access, and live tracking.

PPI License and Tax Clarity

Zinka Logistics received full approval for its PPI license on July 2, which is intended to enhance customer experience and expand margins, though it will not fully disintermediate banking partners. The company clarified that the significant tax outflow of INR12 crores includes INR8 crores of deferred tax, with the actual cash tax outgo of INR3.8 crores primarily from treasury income. The effective tax rate is expected to be 24-25% for the foreseeable future.

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