Glottis Limited — Q2 FY26 earnings call

Call held 17 Nov 2025

Management summary

Glottis Limited reported a strong sequential revenue growth of 27.7% in Q2 FY26, reaching INR 2,147 million, driven by improved realization and activity across key customers. While YoY revenue was impacted by global trade slowdown and softer freight rates, the company saw significant growth in its air segments and increased contribution from the renewable energy sector. Management outlined plans for backward integration through capex of INR 130 crores for trailers and containers, expecting substantial margin accretion, and is expanding its sales force in Western India to diversify its customer base and industry verticals.

Highlights

  • Q2 FY26 Revenue from operations grew 27.7% sequentially to INR 2,147 million, driven by improved realization and activity.

  • Air import revenue recorded 17.3% year-on-year growth, and air export revenue more than doubled year-on-year.

  • Renewable energy sector accounted for 46% of the revenue in Q2 FY26, up from 43% in Q1 FY26.

  • Revenue contribution from top five customers increased to 41% in Q2 FY26, compared to 39% in Q1 FY26, reflecting higher wallet share.

  • Management projects 15-20% margin accretion from trailer purchases and 20-22% vendor cost reduction from container purchases at the EBITDA level.

Concerns

  • Q2 FY26 revenue was lower year-on-year due to reduced global container movement and softer freight rates.

  • TEUs handled in Q2 FY26 were lower sequentially (21,972 vs 25,060 in Q1 FY26) and YoY (H1 FY26 47,032 vs H1 FY25 53,407).

  • Trade receivables increased to INR 165 crores due to an expanded customer base and a slight liberalization of credit terms.

  • Q2 FY26 EBITDA margin at 8.4% was lower than the H1 FY26 margin of 9.2%, with margin compression noted due to costing despite increased freight rates.

Key financials

3 periods

Q2 FY26

  • Revenue from Operations
    2,147 Mn
    QoQ +27.7%
  • EBITDA
    181 Mn
  • EBITDA Margin
    8.4%
  • PAT
    124 Mn
  • PAT Margin
    5.8%
  • TEUs Handled
    21,972 units
    QoQ -12.3%

H1 FY25

  • TEUs Handled
    53,407 units

H1 FY26

  • Revenue from Operations
    3,829 Mn
  • EBITDA
    350 Mn
  • EBITDA Margin
    9.2%
  • PAT
    243 Mn
  • PAT Margin
    6.3%
  • TEUs Handled
    47,032 units
    YoY -11.9%

What they filed

Q1 FY27: revenue up 39.9%, net profit down 8.3% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue287 198 307 168 215 −25%144 −27%196 −36%235 +40%
EBITDA29 19 16 17 18 −38%4 −79%11 −31%16 −6%
Net profit21 13 11 12 12 −43%3 −77%11 +0%11 −8%
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

  • Sea Import
    81% Revenue Contribution (Q2 FY26)
  • Air Import
    2.1% Revenue Contribution (Q2 FY26)1.4% Revenue Contribution (Q2 FY25)17.3% YoY Growth
  • Air Export
    14.3 Mn Revenue (Q2 FY26)66% Revenue Contribution (Q2 FY26)22% Revenue Contribution (Q2 FY25)100% YoY Growth
  • Road Transport
    4.5% Revenue Contribution (Q2 FY26)3.3% Revenue Contribution (Q2 FY25)
  • Asia Region
    86% Revenue Contribution (Q2 FY26)84% Revenue Contribution (H1 FY26)
  • Top 5 Customers
    41% Revenue Contribution (Q2 FY26)39% Revenue Contribution (Q1 FY26)
  • Renewable Energy Sector
    46% Revenue Contribution (Q2 FY26)43% Revenue Contribution (Q1 FY26)
  • China (H1 FY26)
    10,000 units TEUs Handled
  • Vietnam (H1 FY26)
    4,500 units TEUs Handled
  • Indonesia (H1 FY26)
    2,000 units TEUs Handled
  • Malaysia (H1 FY26)
    3,000 units TEUs Handled

Capital allocation

high confidence
  • Capex ₹1,300 Mn
    • Purchase of trailers
    • Purchase of 1,000 containers
    And the other asset purchases like containers, 1,000 containers is what we are trying to do. That will be done in two or three tranches. And both will get completed within Q4 of FY 2026. This is on in terms of asset purchase. And till now, we are like capex light. Now, we are going capex heavy as per you like it is like we are involving this INR 130 odd crores in capex, buying containers and trailers.

Guidance & targets

Capex

  • Completion of asset purchases (trailers and containers) Capex · Q4 FY26 · High confidence Completed
    And both will get completed within Q4 of FY 2026. This is on in terms of asset purchase.

    — Management

Margin

  • EBITDA margin accretion from trailer purchases Margin · Ongoing · Medium confidence 15-20%
    With the trailer purchase, when we do this backward integration, we are focused, roughly around 15% to 20% from the top line, especially on this trailers.

    — Management

  • Vendor cost reduction from container purchases Margin · Ongoing · Medium confidence 20-22%
    And container purchase, we will be reducing our vendor cost, especially close to 20%, 22% from the existing levels.

    — Management

Headcount

  • New sales team in West region Headcount · End of Q3 FY26 or early Q4 FY26 · High confidence Operational
    this team will start coming in maybe from end of Q3 FY26 or early Q4 FY26, sir.

    — Management

Working Capital

  • Trade receivables Working Capital · Q4 FY26 · High confidence Come down
    No, it will definitely come down in Q4, sir.

    — Management

Volume

  • TEUs handled for FY26 Volume · FY26 · Low confidence Good number, good incremental TEUs
    And we are positive ahead and we will close FY26 with good number, good incremental TEUs.

    — Management

New Verticals

  • Top line contribution from Automobiles, Fashion, Pharma New Verticals · Next few quarters · Low confidence Push top line
    So, these are the three new verticals, which we will be trying to push our top line going forward in the next few quarters.

    — Management

Export Business

  • Targeting export customers Export Business · Going forward · Low confidence More export customers
    And we are very positive on targeting more of export customers going forward and majority of our inbound customers also do exports.

    — Management

What to watch in Q3 FY26

Completion of Capex for Trailers & Containers

Q4 FY26
Current Consolidation happening, POs to be released from Dec 2025 for INR 130 crores capex.
Target Purchases completed for INR 130 crores.

Why it matters

Essential for backward integration, customer retention, and expected margin accretion, directly impacting future operational efficiency.

And both will get completed within Q4 of FY 2026. This is on in terms of asset purchase. ... we are involving this INR 130 odd crores in capex, buying containers and trailers.

Risks & concerns

  • Reduced global container movement and softer freight rates

    medium

    On year-on-year basis, revenue was lower because of reduced global container movement and softer freight rates compared to high level seen last year.

    Management acknowledged

  • Increased trade receivables

    medium

    Trade receivables increased to INR 165 crores due to increased customer base and a 'little bit of liberalization' in credit terms, though management expects it to come down in Q4.

    Analyst acknowledged

  • Margin compression due to costing

    medium

    Despite freight levels increasing in Q2, margins decreased because of costing, indicating pressure on profitability.

    Both acknowledged

Q&A highlights

7 direct, 1 evasive
IPO proceeds utilization, capex timeline, and amount for trailers and containers Direct
And the other asset purchases like containers, 1,000 containers is what we are trying to do. That will be done in two or three tranches. And both will get completed within Q4 of FY 2026. This is on in terms of asset purchase. ... we are involving this INR 130 odd crores in capex, buying containers and trailers.

Details the company's significant capital allocation plan for backward integration and its timeline, which is crucial for future operational efficiency and growth.

Asked by Akshit Tiwari

Expected margin accretion from trailer and container purchases Direct
With the trailer purchase, when we do this backward integration, we are focused, roughly around 15% to 20% from the top line, especially on this trailers. And container purchase, we will be reducing our vendor cost, especially close to 20%, 22% from the existing levels. ... Yes, sir. [at EBITDA level]

Quantifies the expected financial benefits (EBITDA margin improvement) from the planned capital expenditure, providing insight into future profitability.

Asked by Krish Jain

Increase in trade receivables and outlook for Q4 Direct
TR numbers. Currently, they stand at 16.5 thousand lakhs. ... there is an increase in the trade receivables actually, but we are increasing the customer base. So, that is the one of the reason for increase in the credit terms. ... No, it will definitely come down in Q4, sir.

Highlights a working capital concern (increased receivables) but also provides management's commitment and timeline for its reduction, which is important for cash flow management.

Asked by Krish Jain

Discrepancy between sequential revenue growth and TEU decline in Q2 FY26 Direct
the actual the freight rate fluctuations and all other factors is the reason for this change in the revenue when compared to the Q1 and Q2. So, if you see the rates, freight rates at the COVID times, it was very high. So, because of that, the freight rate fluctuation, not only freight rate, but all other margin level, everything matters. And because of that, the TEUs and the top line will not be proportional.

Clarifies the impact of external factors like freight rate fluctuations on the company's revenue and volume metrics, explaining why they don't move proportionally.

Asked by Vaibhav Gupta

Plans for diversification into new industry verticals beyond renewable energy Direct
automobiles... fashion and... pharma sectors. So, these are the three new verticals, which we will be trying to push our top line going forward in the next few quarters.

Reveals the company's strategic growth areas and efforts to diversify its revenue streams, indicating future business development focus.

Asked by Krish Jain

Sales team expansion strategy and timeline for Western India Direct
looking to improve the sales base in the West, especially in Gujarat, Maharashtra and New Delhi. These regions, the sales force will be implemented. ... this team will start coming in maybe from end of Q3 FY26 or early Q4 FY26, sir.

Outlines specific operational expansion plans for geographical growth and customer acquisition in key regions.

Asked by Krish Jain

Rationale for year-on-year revenue decline in Q2 FY26 Direct
each quarter is influenced by different type of external and internal factors. And coming to the performance, it is influenced by a lot of freight rate fluctuations, market demand and supply and also the global economic conditions.

Addresses a key financial concern by providing management's explanation for the YoY revenue contraction, linking it to broader market conditions.

Asked by Aryan Agrawal

Peer comparison and details of a peer with 64% revenue increase Evasive
So, we cannot name the peer, but they are in multiple spread. They are into freight forwarding, they are into rail operation, they are into warehousing and distribution.

Management declined to name a peer, which could indicate competitive sensitivity or a lack of direct comparability, leaving the analyst's question partially unanswered.

Asked by Vaibhav Gupta

2 min read 6 chapters

Detailed narrative

Q2 & H1 FY26 Financial Performance Overview

Glottis Limited reported Q2 FY26 revenue from operations at INR 2,147 million, marking a 27.7% sequential growth. For H1 FY26, revenue stood at INR 3,829 million. Q2 EBITDA was INR 181 million with an 8.4% margin, while H1 EBITDA was INR 350 million with a 9.2% margin. Profit after tax for Q2 was INR 124 million (5.8% margin) and for H1 was INR 243 million (6.3% margin). Management noted that YoY revenue was lower due to reduced global container movement and softer freight rates.

Operational Highlights & Business Mix

The company handled 21,972 TEUs in Q2 FY26, bringing the H1 FY26 total to 47,032 TEUs, which was lower than H1 FY25's 53,407 TEUs. Sea import remained the largest revenue contributor at 81% in Q2 FY26. The air segment showed strong growth, with air import revenue increasing 17.3% YoY and air export revenue more than doubling YoY to INR 14.3 million. The road transport segment also improved, contributing 4.48% to Q2 FY26 revenue.

Customer & Industry Vertical Focus

Glottis demonstrated deeper customer penetration, with revenue contribution from its top five customers increasing to 41% in Q2 FY26 from 39% in Q1 FY26. The renewable energy sector continued to be a significant growth vertical, accounting for 46% of Q2 FY26 revenue, up from 43% in Q1 FY26. Geographically, Asia remained the strongest region, contributing 86% of Q2 FY26 revenue and 84% in H1 FY26, with China, Vietnam, Indonesia, and Malaysia being key contributors by TEUs.

Capital Allocation for Backward Integration

The company plans a significant capital expenditure of INR 130 crores for backward integration, involving the purchase of trailers and 1,000 containers. Trailer purchases will commence from end of Q3 FY26 (December onwards) in tranches, and all asset purchases are expected to be completed within Q4 FY26. This investment is aimed at building customer confidence, enhancing long-term relationships, and generating new business opportunities, marking a shift from an asset-light to a capex-heavy model.

Expected Margin Accretion & Sales Expansion

Management anticipates substantial margin accretion from the planned capex, projecting 15-20% top-line benefit from trailer purchases and a 20-22% reduction in vendor costs from container purchases, both at the EBITDA level. To diversify its customer base and geographical reach, Glottis is expanding its sales force in Western India (Gujarat, Maharashtra, New Delhi), with new teams expected to be operational from end of Q3 FY26 or early Q4 FY26.

Working Capital Management & New Growth Verticals

Trade receivables increased to INR 165 crores due to an expanded customer base and a slight liberalization of credit terms, but management expects them to decrease in Q4 FY26. Beyond renewable energy, Glottis is strategically focusing on new verticals such as automobiles, fashion, and pharma sectors to drive top-line growth in the upcoming quarters, aiming for diversification and competitive advantage and also targeting more export customers.

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