GLOTTIS

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.

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.

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.

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.

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.

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.