Patel Integrated Logistics Limited — Q3 FY26 earnings call

Call held 13 Feb 2026

Management summary

Patel Integrated Logistics reported a mixed Q3 FY26, experiencing a temporary dip in cargo volumes due to specific operational headwinds and seasonal slowdowns. Despite this, the company achieved 12% YoY PAT growth in Q3 and 16% YoY in 9M FY26, driven by its net debt-free status and cost-conscious approach. Strategic initiatives include a new road logistics subsidiary and expanded airline partnerships, with management expressing confidence in future growth as market conditions stabilize and asset monetization progresses.

Highlights

  • PAT grew 12% YoY in Q3 FY26 to INR 3 crores, with a PAT margin of 3.05%.

  • PAT grew 16% YoY in 9M FY26 to INR 7 crores, with a PAT margin of 2.53%.

  • Company achieved net debt-free status, contributing to sustained PAT margin improvement.

  • New subsidiary, Rajpat Logistics Private Limited (60% owned), incorporated to expand road logistics, already operational in Q4 FY26.

  • New partnership with Star Airline to strengthen domestic cargo network, with services commencing in February 2026.

Concerns

  • Total cargo volume declined 7% QoQ for domestic and 6% QoQ for international in Q3 FY26.

  • 9M FY26 operational income of INR 251 crores was slightly lower than INR 256 crores in 9M FY25.

  • Key logistics costs like ATF and petroleum/diesel are not yet under GST, limiting full sector benefits.

Key financials

2 periods

Q3 FY26

  • Operational Income
    ₹88 Cr
  • EBITDA
    ₹2 Cr
  • EBITDA Margin
    2.5%
  • PAT
    ₹3 Cr
    YoY +12%
  • PAT Margin
    3%
  • Total Cargo Volume
    14,339 tons
  • Blended Sales Realization
    ₹59.82

9M FY26

  • Operational Income
    ₹251 Cr
  • EBITDA
    ₹7 Cr
  • EBITDA Margin
    2.5%
  • PAT
    ₹7 Cr
    YoY +16%
  • PAT Margin
    2.5%

What they filed

Q1 FY27: revenue up 45.5%, net profit up 53.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue84 90 87 78 94 +12%88 −2%97 +12%113 +46%
EBITDA2 2 2 2 3 +17%2 −10%4 +76%2 +28%
Net profit2 2 2 2 2 +12%3 +23%3 +61%3 +53%
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 Volume (Q3 FY26)
14,339 tons Total
  • Domestic Cargo 12,270 tons 85.6%
  • International Cargo 2,069 tons 14.4%

Capital allocation

high confidence
  • Debt Net ₹0 Cr
    No, Jen. It will continue. Why I'm telling you, because we are a company which is a net debt-free company now.
  • M&A Rajpat Logistics Private Limited Acquisition · Closed

    Expand road logistics business and strengthen multi-model service offerings.

    Expected to contribute meaningfully in terms of turnover and profit for the company in the next few quarters.

    during the quarter under review, we incorporated Rajpat Logistics Private Limited as a subsidiary to expand our road logistics business, and consequently, strengthen our multi-model service offerings. The subsidiary has been incorporated very recently, on 27 November 2025. And just to inform, our company holds 60% in entity.
  • Liquidity Cash ₹10 Cr Working capital is very comfortable, not utilizing full bank limits.
    Look, we have a cash balance of more than INR10 crores.

Guidance & targets

Revenue

  • Q4 FY26 Top Line Growth Revenue · Q4 FY26 · Low confidence Double digits
    I'm refrained from giving the guidance, but going by the numbers which are coming up now also, I'm very hopeful that what you are talking about will be achieved.

    — Mahesh Fogla

New Business Contribution

  • Rajpat Logistics Contribution New Business Contribution · Next few quarters · Medium confidence Meaningful turnover
    So there are we are very much hopeful that in the next few quarters, it will have things out there, it will have a meaningful turnover, yes.

    — Mahesh Fogla

Asset Monetization

  • Property Redevelopment Agreement Asset Monetization · Next 2-3 quarters · Medium confidence Very definite agreement
    So we are actively in the very active stage in talking with them, and it's progressing very well as I'm talking to you. And in hopefully next 2, 3 -- next few quarters, we will have a very definite agreement with them and be able to move forward.

    — Mahesh Fogla

What to watch in Q4 FY26

Rajpat Logistics Contribution

Next few quarters
Current Just started, in sample stage
Target Meaningful contribution to turnover

Why it matters

The new road logistics subsidiary is a key growth driver; its ramp-up will indicate the success of the company's diversification strategy.

Look, it has already been in a sample stage, it has already got operational in the January quarter -- January to March quarter. And we are expecting, at least because any new business takes its time for stabilization of operations, so we are expecting in the next few quarters definitely we will get a meaningful contribution from that company as well.

Risks & concerns

  • Dependence on specific airlines and operational disruptions

    medium

    Temporary volume decline in Q3 FY26 due to IndiGo airline disruption, though management stated it was a one-time event and regulators are working to reduce dependence.

    Analyst acknowledged

  • Key logistics costs not under GST

    medium

    ATF and petroleum/diesel are not under GST, limiting the full benefits of GST 2.0 for the logistics sector despite costs being passed on to customers.

    Management acknowledged

Q&A highlights

6 direct
Structural demand issues vs. temporary volume decline Direct
There is no slow in demand. Demand is very much there in the market and that people are more and more, as we are talking about the e-commerce growing, people want a faster delivery. And India is growing, definitely demand is also growing. Again, this is a onetime issue of disruption of aircraft, which we all know, of IndiGo. Otherwise, there was no other issues.

Clarifies that the Q3 volume dip was temporary due to specific events (IndiGo disruption, festive slowdown) and not indicative of underlying demand weakness in the growing logistics market.

Asked by Jenisha

Sustainability of improved PAT margins Direct
No, Jen. It will continue. Why I'm telling you, because we are a company which is a net debt-free company now. So we have a saving in the interest costs as well as we have other income also coming up.

Confirms that the improved PAT margins are sustainable, primarily driven by the company's new net debt-free status and associated interest cost savings.

Asked by Jenisha

Risk of flight operator dependence and asset-heavy model Direct
Look, we have our own flight is always not a viable business model, as you know also, because that is not the right approach... So we have no intention of bringing any asset-heavy business or like airline.

Reaffirms the company's commitment to an asset-light business model, explaining why they will not invest in their own aircraft fleet despite occasional airline disruptions.

Asked by Shlok

Impact of GST 2.0 on logistics sector Partial
But ATF, which is a major fuel cost in the airline, has not been brought under GST still, neither the petroleum for the neither the diesel, neither the petrol has been brought under the GST... it's very high time as the logistics sector is one of the major sectors for growing the economy, we could bring all the major things like petroleum or the ATF, which are outside GST, to immediately bring under the GST.

Highlights a significant regulatory challenge for the logistics sector, where key input costs like ATF and fuel are not under GST, limiting the full benefits of tax reforms.

Asked by Shlok

Warehousing strategy and ROI Direct
We are ROI-driven company. So as we are talking about warehouse are like sometimes become a very asset-heavy business and a low ROI-driven business. So having said so, we may look into the businesses or as I was explaining, asset-light businesses. So we are right now not much focusing on the creating assets and reducing our ROI.

Explains the company's cautious and ROI-focused approach to asset-heavy segments like warehousing, prioritizing asset-light models for better returns.

Asked by Shivani Mehta

Monetization of assets/property redevelopment Direct
we have a building which is going to be redeveloped and we are actively working, looking for a cluster redevelopment... in hopefully next 2, 3 -- next few quarters, we will have a very definite agreement with them and be able to move forward.

Provides an update on a potential future value-unlocking event through property redevelopment, with a timeline for a definitive agreement.

Asked by Vikram Suryavanshi

Rajpat Logistics contribution timeline Direct
it's definitely in the -- because just now it started... it may take the next few quarters. But we already bring up all the structure, all the compliances and all that we already put in place now. So there are we are very much hopeful that in the next few quarters, it will have things out there, it will have a meaningful turnover, yes.

Gives a timeline for when the newly incorporated road logistics subsidiary is expected to start contributing meaningfully to the company's revenue and profitability.

Asked by Vikram Suryavanshi

2 min read 6 chapters

Detailed narrative

Q3 FY26 Financial and Operational Performance

Patel Integrated Logistics reported a Q3 FY26 operational income of INR 88 crores and a PAT of INR 3 crores, marking a 12% YoY growth in PAT. The PAT margin for the quarter stood at 3.05%. For the nine months ended December 2025, operational income was INR 251 crores with a PAT of INR 7 crores, reflecting a 16% YoY growth and a PAT margin of 2.53%. Total cargo volume in Q3 FY26 was 14,339 tons, with domestic cargo at 12,270 tons and international at 2,069 tons.

Temporary Volume Decline and Market Outlook

The company experienced a temporary decline in Q3 FY26 cargo volumes, with domestic down 7% QoQ and international down 6% QoQ. This was primarily attributed to a one-time disruption from IndiGo Airline in December 2025 and a post-festive seasonal slowdown in the international sector. Management asserted that there are no structural demand issues, highlighting the robust growth in the Indian air cargo market, driven by e-commerce and manufacturing, which positions the company for future growth.

Strategic Expansion and Asset-Light Approach

Patel Integrated Logistics is expanding its domestic cargo operations through a new partnership with Star Airline, with services expected to commence in February 2026. A significant strategic move was the incorporation of Rajpat Logistics Private Limited as a 60% subsidiary on November 27, 2025, aimed at expanding its road logistics business. This new subsidiary operates on an asset-light model, utilizing partner networks rather than owning trucks, consistent with the company's overall strategy to avoid asset-heavy investments.

Capital Allocation and Profitability Drivers

The company has achieved a net debt-free status, which is a key factor in its improved and sustainable PAT margins due to significant savings in interest costs. Patel Integrated Logistics maintains a comfortable liquidity position with a cash balance of over INR 10 crores and is not fully utilizing its working capital limits. Management emphasized an ROI-driven capital allocation strategy, opting for asset-light opportunities and deferring asset-heavy projects like warehousing until higher ROI visibility is achieved.

Regulatory Environment and Infrastructure Impact

Management expressed concern that key logistics cost components such as Aviation Turbine Fuel (ATF) and petroleum/diesel are still outside the GST framework, which limits the full benefits of GST 2.0 for the sector. Despite this, they anticipate future growth driven by increasing airport infrastructure (from 140 to 220 airports) and passenger aircraft (from 800 to 1,700) in India. The stabilization of Navi Mumbai Airport and the development of Jewar Airport are expected to further boost cargo movement.

Asset Monetization and Employee Incentives

The company is actively pursuing the redevelopment of a building, exploring a cluster redevelopment, with a definite agreement anticipated within the next 2-3 quarters. This initiative represents a potential future value-unlocking event. Additionally, Patel Integrated Logistics is implementing a restricted stock unit plan for employees, structured on ESOP-on-ESOP lines, pending shareholder approval, to foster an ownership mindset and improve talent retention.

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