Blackbuck Limited

Blackbuck Limited achieved its first full year of profitability with a PAT of 160 crores in FY26, a significant turnaround from a negative 290 crores in FY23. The company's total income for FY26 grew by 55% year-on-year to 715 crores, while Adjusted EBITDA increased by 84% to 190 crores. In Q4 FY26, total income saw a 52% year-on-year growth, and Adjusted EBITDA reached 50.2 crores, up 30% year-on-year, reflecting consistent momentum.

Core businesses, primarily driven by the payments vertical (tolling) and telematics, grew by 30% year-on-year in Q4 FY26 and 34% for the full year. Tolling GTV grew 27% year-on-year in FY26, outpacing the industry average by 11 percentage points due to strong product and distribution. The telematics business, particularly the AIS vertical driven by mandates, doubled its sales in Q4 FY26, contributing significantly to core business growth.

The growth businesses, including super loads and vehicle finance, expanded by approximately 300% year-on-year in Q4 FY26. Vehicle finance disbursals grew 25% quarter-on-quarter, building on a 30% growth in the previous quarter. Management expects the vehicle finance business to move out of investment mode and start generating cash flows by the end of the current financial year, potentially transitioning it to a core business trajectory.

Blackbuck's strategy involves compounding profitability in core businesses through operating leverage while expanding market share. The company continues to invest in growth businesses, conducting multiple experiments to scale faster and maximize profitability. Management emphasizes that all businesses are contribution margin positive, ensuring profitability converges as orders scale, and growth is viewed as an outcome of profitable customer acquisition and strategic investment.

The company anticipates short-term headwinds from the West Asia conflict, which is expected to create a drag on trade movement, particularly for intercity trucking. Additionally, the fuel business is facing challenges due to the temporary suspension of loyalty programs by Oil Marketing Companies (OMCs). Management noted that some impact of these headwinds was absorbed in Q4 FY26, with further effects expected in the next quarter, though long-term customer acquisition and retention are not expected to be structurally impacted.

Blackbuck's revenue from the MLFF (Multi-Lane Free Flow) system is entirely from the issuer ecosystem, which is expected to remain relevant as the system evolves. The company sees opportunities to participate on the acquirer side, leveraging its telematics capabilities. The telematics business itself is diversified into basic GPS tracking, AIS devices (driven by mandates across 10 states), and newer initiatives like fuel sensors and dash cams, with AIS devices showing strong growth.