Zinka Logistics

Zinka Logistics reported a robust Q2 FY26, with total income reaching ₹167 crores, marking a 61% year-on-year growth from ₹104 crores. EBITDA significantly increased by 143% year-on-year to approximately ₹37 crores, up from ₹15 crores in the previous year. The company achieved a profit after tax (PAT) of ₹29.2 crores, a substantial turnaround from a negative ₹270 crores in the same period last year. Net revenue from operations, excluding interest income, grew by 38% year-on-year to ₹136 crores from ₹99 crores.

The core businesses demonstrated strong performance, with net revenue growing 37% year-on-year, despite a sequential growth of 3% during a typically low season quarter (July-September). Key metrics supporting this growth include a transacting customer base of approximately 8,00,000, up 13% year-on-year, and users engaging more deeply with services, growing 21% year-on-year to 4,00,000. The Gross Transaction Value (GTV) of payments reached ₹6800 crores, a 29% year-on-year increase, primarily driven by tolling and telematics verticals. Adjacencies like the fuel sensor business also saw significant traction, growing 55% sequentially.

The Superloads business, a key growth driver, experienced a remarkable 226% sequential revenue growth and 19% year-on-year growth. Management indicated that the playbook for this business is approximately 60% complete, with plans to expand from 4 current hubs to 14-15 hubs across India within the next six months. The strategy involves a modular approach, with each new hub expected to break even within 2-3 months. This aggressive expansion is supported by a growing team, which has increased from under 50 to 250 people in the last few months.

The company is deeply integrating AI across its product offerings, viewing it as fundamental to making services more intelligent and less manually dependent. While the Indian market for telematics has historically been price-dependent, AI is being leveraged in areas like fuel sensors for accurate data and in classifieds/Superloads for efficient load matching and asset repositioning. The company is also experimenting with video analytics in the dash cam sector, indicating a focus on advanced technological solutions.

Zinka Logistics claims a dominant position in the digitized loads platform in India, with a market share estimated to be upwards of 90%. In the tolling segment, the company's market share is nearing 50% and is expected to grow further due to a materially higher acquisition market share. Management noted that the pricing in the industry is highly heterogeneous and micro-market dependent, and they welcome more players as it helps in faster market penetration. While acknowledging challenges in dominating the container truck segment, they confirmed its presence on their platform.

The company continues to balance profitability with aggressive investments, particularly in newer growth businesses. Adjusted EBITDA for the half-year period grew 190% year-on-year to ₹90 crores, but sequential EBITDA saw a small shrinkage of ₹2-3 crores due to these investments. Management emphasized that this strategy is designed for long-term compounding of revenue and profitability, with a focus on scaling newer businesses and deepening market penetration, even if it means a temporary impact on short-term margins.