Glottis Limited — Q3 FY26 earnings call

Call held 19 Feb 2026

Management summary

Glottis Limited reported a challenging Q3 FY26 with moderated revenue and profitability due to a soft market and price pressure. Despite these headwinds, the company maintained focus on customer engagement, disciplined cost control, and strategic expansion of its operating footprint. Management expressed optimism for Q4 FY26 and future growth, driven by diversification into new verticals like automotive and continued investment in assets.

Highlights

  • Focused on customer engagement and disciplined cost control amidst challenging market conditions.

  • Strategic expansion of operating footprint with a new branch in Ahmedabad and addition of 25 vehicles.

  • Renewable energy and engineering products remained strong verticals, with engineering products increasing to 20.2% of revenue in Q3 FY26.

  • Management expressed bullishness for Q4 FY26, expecting it to be very positive.

  • Commitment to deploy INR 130-odd crores in assets (trucking, transport, containers) in FY26 and Q1 FY27.

Concerns

  • Challenging operating environment with lower shipment volumes and softer realization across trade lanes.

  • EBITDA margin moderated to 2.8% in Q3 FY26 due to lower revenue base and price pressure.

  • Container throughput (TEUs) was 20,710 lower than earlier periods, reflecting soft global container movement.

  • Revenue per TEU dropped from ~97,000 in Q2 FY26 to ~70,000 in Q3 FY26, a 16% drop in pricing.

  • Increased cost of services (91% of revenue) to maintain customer base during soft market.

Key financials

  1. Revenue from Operations 1,439 Mn
  2. EBITDA 40 Mn
  3. EBITDA Margin 2.8%
  4. Profit After Tax 27 Mn
  5. PAT Margin 1.9%
  6. TEUs Handled 20,710 TEUs

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.

Capital allocation

high confidence
  • Capex ₹130 Cr
    • Addition of 25 vehicles (total owned fleet 42)
    • Addition of 45 odd fleets in Q4 FY26
    • Addition of 70-75 odd trailers within Q4 FY26, balance in Q1 FY27
    • Execution of 1,000 containers in Q4 FY26 (live from Q1 FY27)
    We also added 25 vehicles during the quarter by taking a total owned fleet strength to 42 vehicles. This addition improves our first mile and last mile control and reduce dependency on third-party availability in key locations. ... we had already included 25 fleets. Currently our fleet strength is 42. We are again doing some 45 odd fleets in Q4 FY26 which means in terms of transportation like we were trying to add 150 odd trailers from the IPO proceedings. We will be doing close to 70 to 75 odd trailers within Q4. I'll tell you the reason why. The balance we will be doing in Q1 FY27. And in terms of 1,000 containers, we will execute everything in Q4 FY26 itself. The payments have been already in under process. ... We are deploying assets in FY26 and Q1 FY27 combined close to INR 130-odd crores especially on trucking and transport and containers.

Guidance & targets

Capex

  • Asset Deployment (trucking, transport, containers) Capex · FY26 and Q1 FY27 · High confidence INR 130-odd crores
    We are deploying assets in FY26 and Q1 FY27 combined close to INR 130-odd crores especially on trucking and transport and containers.

    — Ramkumar Senthilvel

Volume

  • TEUs Handled Volume · FY26 · Medium confidence close to 1,12,800 TEUs
    In terms of TEUs in FY25, we did around 1,12,800 odd TEUs. So, as such 9M FY26 we stand around 67,000 TEUs, which is short of like 45,000 TEUs which could be the target to achieve at least that is FY25 numbers in terms of TEUs. So out of 45,000 TEUs we are very bullish in this quarter and we are very positive achieving at least close to that.

    — Ramkumar Senthilvel

Outlook

  • Q4 FY26 Performance Outlook · Q4 FY26 · High confidence very positive
    So, this we could take an offline call but I could say Q4 FY26 would be very positive and company is very bullish from Q4 FY26 onwards.

    — Ramkumar Senthilvel

Market context

  • EBITDA Margin Profitability · Medium confidence double-digit

    From 9% odd today

    So, the margins what we are currently in 9M FY26 I think our EBITDA is close to 9% odd. So, we are very, very positive going on a double-digit.

    — Ramkumar Senthilvel

What to watch in Q4 FY26

Q4 FY26 Performance

next quarter
Current Management is bullish and expects Q4 FY26 to be very positive.
Target Strong revenue and profitability growth in Q4 FY26.

Why it matters

Verifies management's optimistic outlook and potential turnaround from a soft Q3.

So, this we could take an offline call but I could say Q4 FY26 would be very positive and company is very bullish from Q4 FY26 onwards.

Risks & concerns

  • Challenging operating environment and market softness

    medium

    Global logistics and freight market remained challenging with uneven freight flows, softening rates, and cautious shipment planning, impacting revenue and margins.

    Management acknowledged

  • Policy changes impacting renewable energy imports

    medium

    Government policies like ALMM and 'Make in India' are shifting the focus from finished solar module imports to domestic manufacturing, affecting traditional revenue streams but creating new opportunities in raw materials.

    Management acknowledged

  • Driver availability for new fleet additions

    low

    Scarcity of drivers is a challenge for new trailer deployment, but the company is identifying and training drivers.

    Management acknowledged

  • Customer concentration

    low

    Top 5 customers contributed 30.5% of revenue in Q3 FY26, but management is adding new accounts to diversify the base over time.

    Management acknowledged

Q&A highlights

8 direct
Reasons for revenue per TEU drop and sequential decline in ocean freight import and renewable energy sector contribution Direct
So, the revenue has dropped due to two reasons. One the market is very soft in Q3 FY26, due to lot of policy changes, policy angles especially from our country's policy against the Southeast Asia countries policy. That is especially on terms of imports. That is one of the reasons the market was very soft. And second the freight levels also dropped close to 28% to 30% which has brought down the average per TEU basis quarter-on-quarter it was very it was like lower. For an example in Q2 FY26 the average per TEU cost was around 79,000 and for this quarter Q3 FY26 it is close to 67,000 odd. So, there has been almost like a 16% drop in terms of the pricing.

Management explained the significant drop in revenue per TEU and overall revenue by citing market softness, policy changes, and freight rate declines, providing specific numbers for the price drop.

Asked by Krish Jain

Increase in cost of services and its impact on EBITDA margins Direct
Yes, the cost has increased a bit from our side. And second, due to market dynamics, the prices were the base and the freight rates were softening. We also wanted to maintain our existing customer base. So, we don't want to miss out on any of our customer base. We wanted to play it very soft especially in Q3 FY26. We just did we went with the wind. We didn't go against the wind. That's one of the reasons there is a big drop in Q3 FY26, which you could see.

Management clarified that the increased cost was a strategic decision to retain customer base amidst softening freight rates, explaining the margin compression.

Asked by Krish Jain

Status of capex plans for trailers and containers, and utilization of IPO proceeds Direct
Yes, Krish. So, as Manikandan, has earlier quoted we had already included 25 fleets. Currently our fleet strength is 42. We are again doing some 45 odd fleets in Q4 FY26 which means in terms of transportation like we were trying to add 150 odd trailers from the IPO proceedings. We will be doing close to 70 to 75 odd trailers within Q4. I'll tell you the reason why. The balance we will be doing in Q1 FY27. And in terms of 1,000 containers, we will execute everything in Q4 FY26 itself. The payments have been already in under process.

Management provided a detailed update on the progress of fleet and container additions, including specific numbers and timelines, and explained the phased approach.

Asked by Krish Jain

Outlook for renewable sector imports given policy changes and potential downward trend Direct
Once this ALMM came into place and government of India's Make in India drive is in fact pushing all these module importers to do module assembly or module manufacturing in India. In which the volume compared with module imports or the raw material compared with raw material imports has come down. This is for sure. And what we are trying to what we are understanding from the market is that the capacity is also increasing in India. Like for example customers who are doing 5 gigawatts of module line is now increasing the module capacity to 15 to 20 gigawatts. So, this is giving us more opportunity of driving the volume especially on the raw materials for this solar module manufacturing.

Management addressed the impact of government policies on renewable energy imports, explaining the shift from finished goods to raw materials and identifying new opportunities in energy storage batteries.

Asked by Bharat Joshi

Future focus on renewable sector for revenue contribution and diversification plans Direct
No see revenue contribution definitely energy vertical is going to be one of the biggest verticals in Glottis at least for the next three four years. In my last concall also I was telling about our concentration, we will be doing more in automobile. So, we have signed few contracts with top automobile players and we are executing this auto in a big way in Q4 FY26. This auto spread will have a big growth compared with FY25. FY26 auto growth would be higher. Apart from auto we will be doing engineering and pharma other three to four verticals we have already identified.

Management clarified that while renewable energy remains important, the company is actively diversifying into other high-growth verticals like automobile, engineering, and pharma, with specific plans for Q4 FY26.

Asked by Bharat Joshi

New branch location and a comprehensive list of all branches Direct
Okay. We have currently opened the branch in Ahmedabad. So, we have an operating office which is based out of Gandhidham. So, this Gandhidham branch is almost six to seven years we have been operating the Gandhidham branch. We thought that we have to actively focus on Ahmedabad and Surat belt where we have a lot of exports as well as import opportunities. ... Then we have a branch at Delhi. We have a branch at Kolkata. We have a branch at Bangalore. We have a branch in Coimbatore, Tuticorin, Cochin. So, these are the branches currently we have. And we will keep adding more because we are identifying more promising areas so we will keep adding more in coming quarters. ... And to add to Ram's point, Mumbai is also one more branch we have.

Management provided details on the newly opened Ahmedabad branch and listed all current branch locations, indicating strategic expansion.

Asked by Bharat Joshi

TEU numbers for FY26 compared to FY25 and the target for the current year Direct
In terms of TEUs in FY25, we did around 1,12,800 odd TEUs. So, as such 9M FY26 we stand around 67,000 TEUs, which is short of like 45,000 TEUs which could be the target to achieve at least that is FY25 numbers in terms of TEUs. So out of 45,000 TEUs we are very bullish in this quarter and we are very positive achieving at least close to that. The market is very soft but we are still focusing more and customer bases have increased. We could come little close to this numbers what we did last year.

Management provided the previous year's TEU numbers and expressed confidence in reaching close to those figures for FY26 despite the current market softness, indicating their volume targets.

Asked by Bharat Joshi

Request for route-wise TEU bifurcation for major routes Direct
Yes, coming to the top 5 contributors as already as Ram sir have discussed. China this quarter we have made around 7,900 odd TEUs. With Vietnam, we have made 3,600 odd TEUs. Indonesia close to 2,000 TEUs. Malaysia approximately 1,600 TEUs and United States around 1,300 TEUs. These are the top 5 nations which have contributed to the most of the TEUs in this quarter.

Management provided a detailed breakdown of TEU contributions from top 5 nations, offering insight into geographical volume distribution.

Asked by Bharat Joshi

2 min read 6 chapters

Detailed narrative

Q3 FY26 Performance Overview

Glottis Limited reported revenue from operations of INR 1,439 million for Q3 FY26, contributing to a 9M FY26 total of INR 5,267 million. Operating profitability moderated, with EBITDA at INR 40 million (2.8% margin) for the quarter and INR 390 million (7.4% margin) for 9M FY26. Profit after tax stood at INR 27 million (1.9% margin) for Q3 FY26 and INR 270 million (5.1% margin) for 9M FY26. Container throughput for the quarter was 20,710 TEUs, lower than previous periods, reflecting a soft market.

Market Challenges and Strategic Response

The operating environment in Q3 FY26 was challenging, marked by uneven freight flows, softening freight rates, and cautious customer shipment planning. Revenue per TEU decreased from approximately INR 97,000 in Q2 FY26 to INR 70,000 in Q3 FY26, representing a 16% drop in pricing. In response, Glottis focused on customer engagement, disciplined cost control, and maintaining key customer accounts even with thinner margins to preserve long-term relationships.

Business Mix and Geographical Contribution

Sea import remained the largest revenue contributor, accounting for approximately 79% of total revenue in Q3 FY26. Sea export showed gradual improvement, increasing its share to about 14.5% from 12.2% in the previous quarter. Geographically, Asia continued to be the core region, contributing about 83% of revenue for Q3 FY26 and 84% for the 9M FY26 period. Top 5 customers accounted for 30.5% of Q3 FY26 revenue (INR 438.9 million).

Capital Expenditure and Fleet Expansion

The company continued to invest selectively in its operating footprint, opening a new branch in Ahmedabad to strengthen its presence in West India. Glottis added 25 vehicles during the quarter, bringing its total owned fleet strength to 42. Further plans include adding 45 more fleets and 70-75 trailers in Q4 FY26, with the balance in Q1 FY27. Additionally, 1,000 containers will be executed in Q4 FY26, with total asset deployment of INR 130-odd crores planned for FY26 and Q1 FY27.

Industry Vertical Focus and Diversification

Renewable energy remained the largest vertical, contributing 32.7% of revenue in Q3 FY26 and 41.4% for 9M FY26. Engineering products saw a noticeable increase, rising to 20.2% of revenue in Q3 FY26 from 10.8% in the previous quarter, supported by project cargo movement. While renewable energy will remain a significant vertical for the next 3-4 years, Glottis is actively diversifying into the automobile sector, with significant growth expected in Q4 FY26, and exploring opportunities in engineering and pharma.

Outlook and Future Strategy

Management expressed a bullish outlook for Q4 FY26, anticipating it to be very positive. The company aims to achieve close to FY25 TEU numbers (1,12,800 TEUs) for FY26 despite the current market softness. The focus remains on improving service depth, expanding customer coverage, and maintaining tight control over operating costs. Management also highlighted new opportunities arising from increased domestic manufacturing capacity in India for solar modules and the growing energy storage battery (BESS) market.

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