Exim Routes Limited — Q4 FY26 earnings call

Call held 8 Jun 2026

Management summary

EXIMROUTES reported strong top-line growth in FY26, with revenue up 72% to ₹207 crores and PAT up 35% to ₹10.2 crores. While core trading margins improved, overall EBITDA margins compressed due to higher logistics costs and a new low-commission working capital model. The company is focused on leveraging its ERIS technology platform to drive operational efficiencies, expand globally, and achieve capital-efficient growth, targeting ₹300 crores revenue for FY27.

Highlights

  • Revenue for FY26 grew 72% YoY to ₹207 crores, up from ₹121 crores in FY25.

  • Profit after tax for FY26 grew 35% YoY to ₹10.2 crores.

  • Core trading margin (gross profit from operations) improved by 3 percentage points, from 19.4% to 22.4%.

  • Net worth tripled to ₹68.7 crores following the December IPO, and the company is net cash positive with bank balances exceeding total debt.

  • Operating costs as a percentage of revenue fell from 3.8% to 3.1% due to ERIS-driven efficiencies.

Concerns

  • EBITDA margin compressed from 8.5% to 6.8% in FY26, primarily due to higher logistics costs and a new low-commission working capital model.

  • Operating cash flow was negative ₹19 crores in FY26, widening from negative ₹5 crores in FY25, driven by growth and expanded supply advances.

  • Working capital cycle widened modestly, with debtor days increasing from 99 to 103 days on a closing basis.

Key financials

  1. Revenue ₹207 Cr +72%YoY
  2. EBITDA ₹14.1 Cr +38%YoY
  3. EBITDA Margin 6.8%
  4. PAT ₹10.2 Cr +35%YoY
  5. EPS ₹6.05
  6. Core Trading Margin 22.4%
  7. Operating Costs as % Revenue 3.1%
  8. Net Worth ₹68.7 Cr
  9. Total Debt ₹16 Cr
  10. Bank Balances ₹17 Cr
  11. Trade Receivables ₹59 Cr
  12. Operating Cash Flow ₹-19 Cr
  13. Debtor Days (closing) 103 days
  14. Return on Capital Employed 16%
  15. Return on Equity 15%
  16. Return on Invested Capital 9%

What they filed

₹ Cr · quarterly
Line itemQ2 FY25Q4 FY25Q2 FY26Q4 FY26
Revenue47 74 93 114
EBITDA4 6 4 10
Net profit2 5 3 7
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
₹207.4 Cr Total
  • Product Segment (Core Trading) ₹203 Cr 97.9%
  • Services Segment (ERIS, Logistics, Consultancy) ₹4.4 Cr 2.1%

Capital allocation

high confidence
  • Capex Capex disclosed
    • ERIS platform development ₹14.5 Cr
    • Working capital ₹9 Cr
    • General corporate purposes ₹6.5 Cr
    • Office space ₹7.1 Cr
    Of this, only Rs. 9 crores was earmarked for working capital, which has been fully deployed. Beyond that, Rs. 6.5 crores was earmarked for general corporate purposes, Rs. 7.1 crores earmarked for office space, and around Rs. 14.5 crores was allocated to the ERIS platform.
  • Debt Gross ₹16 Cr · 1.1× EBITDA
    • New borrowing New debt facility from a Tier-1 bank, first tranche drawn, balance to follow. ₹20 Cr
    • New borrowing Initial limit for invoice financing with a leading provider, targeting expansion to Rs. 15 crores. ₹2.5 Cr
    Our EBITDA for FY26 was Rs. 14.1 crores, up almost 38%... Our total debt to EBITDA is around 1 to 1.1x as well. Our debt-to-equity ratio is around 0.23, which is in line with the previous year.
  • Liquidity Cash ₹17 Cr Net cash positive with bank balances exceeding total debt. Do not foresee needing further external capital until approaching ₹500 crores revenue.
    As of 31st March, the total debt that we had was close to Rs. 16 crores against bank balances of more than Rs. 17 crores... we do not foresee needing to raise further external capital to fund our working capital in the business until we are approaching Rs. 500 crores of revenue.

Guidance & targets

Revenue

  • Revenue Growth Revenue · FY27 · High confidence 30% to 50%
    For the full-year FY27, our business target is 30% to 50% of revenue growth, top line and bottom line, aiming to hit 300 crores of revenue at the upper end.

    — Anshul Bansal

  • Total Revenue Revenue · FY27 · High confidence ₹300 crores

    — Anshul Bansal

  • Long-term Revenue Target Revenue · five-year vision · High confidence ₹1,000 crore company
    So, long term, absolutely, even if we just focus on that bit, we believe that we can become a Rs. 1,000 crore company just focusing on that... Yes, absolutely. Absolutely. We totally see this as a five-year vision.

    — Anshul Bansal

Volume

  • Containers Handled Volume · this year (FY27) · High confidence 10,000 containers

    From 6,000 containers today

    We are currently moving around 6,000 containers annually, supported by more than 25 global logistic partners. And our aim is to scale to 10,000 containers this year.

    — Manish Goyal

Capital Efficiency

  • Invoice Financing Limit Capital Efficiency · this year (FY27) · High confidence ₹15 crores

    From ₹2.5 crores today

    The agreement is to start with an initial limit of Rs. 2.5 crores, and the target is to scale this to Rs. 15 crores throughout the year as we grow our receivables book, basically to let us turn our receivables faster into cash, so we can fund our growth without the balance sheet expanding one for one.

    — Anshul Bansal

EBITDA Margin

  • EBITDA Margin Trend EBITDA Margin · long term · Medium confidence positive underlying figures

    From lower this year (6.8%) today

    Ultimately, I don't have any guidance for you right now in the long term. As you can see, last year our EBITDA margin was close to 7. This year, it's lower. And obviously, we want to make sure that we move towards underlying figures in a positive way.

    — Anshul Bansal

Market context

  • Operating Cash Flow Status Operating Cash Flow · medium term · Medium confidence positive

    From negative today

    In the medium term, our objective still remains to move towards operating cash flow positive as we scale.

    — Anshul Bansal

What to watch in Q1 FY27

Invoice Financing Limit Expansion

Throughout FY27
Current Initial limit of ₹2.5 crores
Target Expansion to ₹15 crores

Why it matters

Expansion of invoice financing is crucial for improving capital efficiency and funding growth without additional external capital.

The agreement is to start with an initial limit of Rs. 2.5 crores, and the target is to scale this to Rs. 15 crores throughout the year as we grow our receivables book, basically to let us turn our receivables faster into cash, so we can fund our growth without the balance sheet expanding one for one.

Risks & concerns

  • Geopolitical situation impacting supply chains

    medium

    War-like situations can impact supplies from certain regions, requiring shifts to alternate sourcing countries.

    Management acknowledged

  • Elevated oil prices impacting freight costs

    medium

    Globally elevated oil prices have pushed freight costs and the overall cost of services, contributing to EBITDA margin compression.

    Management acknowledged

  • Working capital build-up and negative operating cash flow

    medium

    Operating cash flow was negative ₹19 crores, and the working capital cycle widened due to growth and onboarding new suppliers with tighter terms.

    Management acknowledged

  • Foreign exchange rate volatility

    low

    Currently managed through natural hedging mechanisms, with plans to develop a formal Forex platform.

    Management acknowledged

Q&A highlights

6 direct
Cash Conversion & Working Capital Management Partial
As I mentioned, the technology part helps us scale more efficiently as we grow, but inherently, this is still a very operational and execution-heavy business... In the medium term, our objective is to move towards operating cash flow positive, but if I look at the next 12 to 18 months, the priority for the business is growth.

Analyst challenged the company's cash conversion given its tech-enabled positioning, and management clarified the operational nature of the business and prioritized growth over immediate cash flow positivity.

Asked by Kanishk Gupta

Competitive Advantage of ERIS vs. Digital Marketplaces Direct
So, I believe no traders can do that. So, this is one of the most competitive advantage we have... open marketplace, digital marketplace models fail because they inherently rely on the basic principle of, I have connected a supplier to a mill and they will handle it themselves and I will just take commission from the middle. It doesn't work.

Management provided a detailed explanation of how ERIS's data-driven, integrated approach solves core industry problems (trust, quality, logistics) that pure digital marketplaces cannot, justifying its unique competitive position.

Asked by Arun Obilisetty

Customer Concentration Risk Direct
Our target initially was to build a business with bigger mills because there is a diversity of products... Our focus is to build sustainable business first, that we are not doing much of low margin grades at the moment... our customer concentration ratios have not changed materially from FY '25 to '26.

Analyst raised concerns about high customer concentration, and management explained their strategy of working with larger, higher-margin mills and confirmed stable concentration ratios.

Asked by Kanishk Gupta

Long-term Revenue Target and Timeline Direct
So, long term, absolutely, even if we just focus on that bit, we believe that we can become a Rs. 1,000 crore company just focusing on that... Yes, absolutely. Absolutely. We totally see this as a five-year vision.

Management provided a clear, ambitious long-term revenue target and a specific timeline, offering investors a key metric for future evaluation.

Asked by Kanishk Gupta

Foreign Exchange Risk Management Direct
Yes, sir, we are not following any formal policies yet. It is the plan. In fact, Umar is making a Forex platform. It is on our plan this year... in INR sale, we are hedging something but not much because we are paying advance to the suppliers in high-fee sales. So, automatically, because we are working in a closed-loop situation, so automatically it is hedged because our costing of dollar doesn't change in that case.

Analyst inquired about forex hedging, and management detailed their current natural hedging mechanisms and future plans for a dedicated Forex platform, indicating a proactive approach to risk.

Asked by Arun Obilisetty

AI Capabilities and Deployment Status Partial
Sir, right now, we are in the phase of collecting all the data to make all the Al which will take all these decisions... However, currently, all the Al that we have are recommending deals to our internal personnel... But that is not available to suppliers and buyers. It is only available to our internal actors.

Analyst sought specifics on deployed AI use cases, and management clarified that while AI is in pilot for pricing/matching and used internally, it's not yet customer-facing, providing insight into the tech roadmap.

Asked by Arun Obilisetty

Valuation as Tech Platform vs. Trading Company Direct
I would say, how we get value from market perspective, that is totally up to investors. What we are and who we want to be, that is quite clear, which is we see technology as a core pillar for how we operate and execute what is inherently a physical, operational, heavy business... we are already operating as a tech platform and a tech-enabled company, and we value ourselves as such.

Analyst probed the company's self-perception and market valuation, and management firmly stated their identity as a tech-enabled operational business, emphasizing technology's role in efficiency and growth.

Asked by Arun Obilisetty

ERIS Platform Future Contribution & Milestones Direct
Yes, I think what we will do is we will move in three phases. The first phase is the current phase, which will last for maybe next 12 to 18 months... The second phase... will enable us to collect and add more revenue streams... And the last phase is when all these ERIS has optimized EXIM operations inside our company, which is the phase we are in currently.

Management provided a detailed, phased roadmap for ERIS development and monetization, giving investors clear milestones to track the platform's strategic impact.

Asked by Arun Obilisetty

3 min read 6 chapters

Detailed narrative

Business Model & ERIS Platform

EXIM Routes positions itself as an intelligent bridge connecting global recyclable sources with the Indian recycling industry, addressing a highly fragmented supply chain. The company's core differentiator is its proprietary ERIS (EXIM Routes Intelligence System) platform, which provides an intelligence and execution ecosystem. ERIS offers visibility of nearly 1 million tons of inventory, valued at approximately $300 million annually, representing 20% of the Indian import market. This platform has significantly streamlined the sales process, reducing it from days to minutes, and is enabling the company's expansion into European and African markets.

FY26 Financial Performance Overview

For the full fiscal year 2026, EXIM Routes reported strong top-line growth, with revenue from operations increasing by 72% year-on-year to ₹207 crores, up from ₹121 crores in FY25. Profit After Tax (PAT) also saw a significant rise of 35% to ₹10.2 crores, leading to an EPS of ₹6.05, up from ₹5.22. While the core trading gross profit margin improved by 3 percentage points, from 19.4% to 22.4%, the overall EBITDA margin compressed from 8.5% to 6.8%. This compression was attributed to higher logistics costs from a strategic shift to UK/European markets and the piloting of a low-commission working capital model with suppliers.

Working Capital & Capital Efficiency Initiatives

The company's operating cash flow for FY26 was negative ₹19 crores, a widening from negative ₹5 crores in the previous year, primarily driven by the doubling of its trading book and expanded supply advances. To address this and enhance capital efficiency, EXIM Routes has secured a new ₹20 crore debt facility from a Tier-1 bank, with the first tranche already drawn. Additionally, the company is onboarding invoice financing partners, starting with an initial limit of ₹2.5 crores and aiming to expand it to ₹15 crores throughout the year. Management anticipates these measures will allow the company to fund its growth without needing further external capital until revenue approaches ₹500 crores.

Growth Strategy & Future Outlook

EXIM Routes has set an ambitious revenue growth target of 30% to 50% for FY27, aiming to achieve ₹300 crores at the upper end. The company plans to scale its container handling from 6,000 to 10,000 annually this year. A long-term vision includes becoming a ₹1,000 crore company within a five-year timeframe, primarily by capturing an 8-10% market share of the ₹15,000 crore Indian recycled paper import market. The business is noted to be structurally second-half weighted, with H1 typically contributing 30-35% of full-year EBITDA.

Competitive Advantage & Technology Integration

EXIM Routes differentiates itself by integrating deep data on product quality, logistics, and operational aspects across more than 25 countries into its ERIS platform. This approach provides a unique competitive advantage over traditional traders and pure digital marketplaces, which often fail to address core industry problems like trust, landed price, quality, and post-sale service for mills, or efficient operations for yards. The company emphasizes that its technology-enabled model, rather than being a pure SaaS product, acts as an operating system for recyclables, solving real-world supply chain challenges and improving revenue per employee.

International Operations & Diversification Strategy

The company's strategy involves building a global infrastructure through subsidiaries in Singapore, UK, US, and Germany, enabling end-to-end supply chain management and providing transparency to mills. This global footprint allows EXIM Routes to diversify its sourcing base and serve European and African mills, reducing reliance on specific regions. This diversification proved crucial during geopolitical disruptions, enabling the company to quickly shift sourcing to alternate countries and maintain timely deliveries and cost-effectiveness for its clients.

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