Pranik Logistics Ltd — Q2 FY26 earnings call

Call held 15 Nov 2025

Management summary

Pranik Logistics Limited reported robust Q2 FY26 revenue of INR 38.78 crores, a 60.77% YoY increase, driven by festive season demand and new client acquisitions. The company maintained high warehousing utilization and client retention. However, EBITDA margin compressed to 9.59% due to monsoon impacts and increased maintenance, with PAT also affected by depreciation from recent capex and higher borrowings for growth and working capital.

Highlights

  • Revenue stood at INR 38.78 crores, marking a strong growth of 60.77% year-on-year.

  • Onboarded new clients across consumer, retail, and industry segments, including Meesho, Honda, Mother Dairy, and CWC.

  • Achieved 99% plus utilization of its 13.66 lakh square feet warehousing capacity.

  • Maintained a strong client retention ratio of 90% plus over the years.

Concerns

  • EBITDA margin for Q2 FY26 was 9.59%, a decline from 12.73% in the same quarter last year, attributed to monsoon seasons and unexpected maintenance costs.

  • PAT margin was impacted by depreciation arising from capex investments in software and other assets.

  • Significant increase in borrowings due to a bank shift, fleet additions (20 vehicles), and working capital requirements.

Key financials

2 periods

Headline

  • Revenue
    ₹38.78 Cr
    YoY +60.8%
  • EBITDA
    ₹3.72 Cr
  • EBITDA Margin
    9.6%
  • EBITDA Margin (YoY)
    12.7%
  • Warehousing Space
    13.66 lakh square feet

H1

  • FY26 Revenue
    ₹78 Cr

What they filed

Q1 FY27: revenue up 28.5%, net profit up 5.7% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue24 28 30 39 39 +61%36 +28%46 +52%50 +28%
EBITDA3 3 4 4 4 +21%3 +3%5 +24%5 +27%
Net profit2 2 2 2 2 +8%1 −25%2 +0%2 +6%
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 Capex disclosed
    • Warehousing capex ₹0.96 Cr
    • Fleet addition (20 vehicles)
    • Technological advancements/software
    Well, see, going into numbers of each warehouse and capacity utilization, I think that there's a presentation that's been floated out. And, there are figures which is there in place. So, definitely, I think you can go down. But, yes, if I talk about an overall utilization, we are at 99% plus utilization that we are doing. ... No, still, this is an approximate figure that close to INR1.25 crores is yet unutilized because of, we had utilized the working capital. We had utilized the investment into technology. The one aspect which was utilization into capex, and the capex specifically did not include the vehicles. It was basically into the warehousing capex. Warehousing capex, we have utilized only close to INR96 lakhs, which is of INR2.20 crores that we had given. So close to INR1.25 crores still remains unutilized, which we are already into talks. Before March '26 is where we aim that would be closed and the 100% utilization would be done.
  • Debt Debt disclosed
    • New borrowing Significant increase in borrowings (long-term and short-term) due to shifting banking partners from HDFC to Kotak Mahindra, financing fleet additions, and working capital needs.
    Okay. So one thing is about the borrowings. Both our long term borrowings as well as short term borrowings have seen a significant increase. So where have we deployed the fund? Like how are we using our borrowings? ... So see, actually the company has recently shifted its banking from earlier to HDFC to Kotak Mahindra. So, you know, in the process, HDFC has not yet dropped the limits. So if you would see, that is one reason that there is a substantial increase that's being seen in the numbers. ... Number one. Number two, since we have done fleet addition to the tune of close to 20 numbers, so there has been an increase in the borrowings because of the finance against the fleet. And third, since the company is also increasing its revenue and to maintain a flexibility in terms of its operations and smoothness, so it's again working capital where these funds are.
  • Liquidity Liquidity disclosed Working capital is identified as the primary requirement for future growth, especially as turnover increases, leading to higher debtors.
    If I talk about our aspiration that is there, that would be the better term I would say for the 29 figures that you have just mentioned. So, that's our aspiration, that's what we aspire to grow at. And, yes, I think the major requirement is going to be working capital. ... So this is the period where you need the working capital. And this is for what you need the working capital. And this is why the debtors have increased.

Guidance & targets

Revenue

  • Revenue Revenue · by 2029 · Low confidence ₹500 crores
    My final question is your vision for 2029. So, you are targeting a INR500 crores revenue, if I am correct, with 11%-12% EBITDA margin. So, for that, what would be your further requirements? Whether it would be for working capital or fleet expansion, what are you looking at? ... If I talk about our aspiration that is there, that would be the better term I would say for the 29 figures that you have just mentioned. So, that's our aspiration, that's what we aspire to grow at.

    — Pranav Sonthalia

Profitability

  • EBITDA Margin Profitability · by 2029 · Low confidence 11%-12%
    My final question is your vision for 2029. So, you are targeting a INR500 crores revenue, if I am correct, with 11%-12% EBITDA margin. ... If I talk about our aspiration that is there, that would be the better term I would say for the 29 figures that you have just mentioned. So, that's our aspiration, that's what we aspire to grow at.

    — Pranav Sonthalia

  • PAT Margin Profitability · by 2029 · Low confidence 6%
    My final question is your vision for 2029. So, you are targeting a INR500 crores revenue, if I am correct, with 11%-12% EBITDA margin. So, for that, what would be your further requirements? Whether it would be for working capital or fleet expansion, what are you looking at? ... If I talk about our aspiration that is there, that would be the better term I would say for the 29 figures that you have just mentioned. So, that's our aspiration, that's what we aspire to grow at.

    — Pranav Sonthalia

  • EBITDA Margin Profitability · next quarter · Medium confidence 10-11%

    Previously 9.59% → 10-11%

    EBITDA, we, yes, we do target to maintain it a bit of a hit because of the unavoidable circumstances of the weather that has been happen and the rainy season that has gone. So that is, I don't know how much that we'll be able to make it up. But just for the quarter, again, another quarter, we will be getting back to our, that's what we are targeting, that we get back to our normal figures.

    — Pranav Sonthalia

Growth

  • Revenue Growth Growth · towards 2029 aspiration · Medium confidence 25%
    Now, the company, prima facie, it's set. They're all working towards that aspiration. At the same time, I would like to say that we are more, at least we are committed to something to give it a [inaudible 0:34:43] turnover, 25% growth in revenue

    — Pranav Sonthalia

  • EBITDA Growth Growth · towards 2029 aspiration · Medium confidence 25%
    Now, the company, prima facie, it's set. They're all working towards that aspiration. At the same time, I would like to say that we are more, at least we are committed to something to give it a [inaudible 0:34:43] turnover, 25% growth in revenue — EBITDA, 25% growth in PAT is what we are committed to.

    — Pranav Sonthalia

  • PAT Growth Growth · towards 2029 aspiration · Medium confidence 25%

    — Pranav Sonthalia

Capex

  • Warehousing Capex Utilization Capex · by March '26 · High confidence 100%
    So close to INR1.25 crores still remains unutilized, which we are already into talks. Before March '26 is where we aim that would be closed and the 100% utilization would be done.

    — Pranav Sonthalia

What to watch in Q3 FY26

EBITDA Margin Recovery

next quarter
Current 9.59%
Target 10-11%

Why it matters

To assess if the margin dip due to monsoon and maintenance is temporary and if the company can return to its historical profitability levels.

EBITDA, we, yes, we do target to maintain it a bit of a hit because of the unavoidable circumstances of the weather that has been happen and the rainy season that has gone. So that is, I don't know how much that we'll be able to make it up. But just for the quarter, again, another quarter, we will be getting back to our, that's what we are targeting, that we get back to our normal figures.

Risks & concerns

  • Monsoon impact on sales and margins

    medium

    Heavy monsoon and rains impacted sales volumes and led to unexpected maintenance costs, causing a dip in EBITDA margin from 12.73% to 9.59%.

    Management acknowledged

  • Depreciation impacting PAT margins

    low

    Investments in capex, including software, lead to depreciation, which is an unavoidable factor impacting PAT margins.

    Management acknowledged

  • Perceived client concentration

    low

    While Quick Supply Chain (a Reliance entity) appears to be a large client, management clarified that the revenue is diversified across multiple divisions, mitigating actual concentration risk.

    Analyst downplayed

Q&A highlights

7 direct
EBITDA Margin Variation Direct
I think this was the very first thing you had yourself answered. Because of the monsoon seasons and for us to keep the service levels intact and other things. So, yes, definitely there has been a dip and that's the reason for it.

Analyst questioned the significant drop in EBITDA margin, and management attributed it to external factors (monsoon) and operational decisions to maintain service levels.

Asked by Jatin Agrawal

2029 Vision and Capital Requirements Direct
If I talk about our aspiration that is there, that would be the better term I would say for the 29 figures that you have just mentioned. So, that's our aspiration, that's what we aspire to grow at. And, yes, I think the major requirement is going to be working capital.

Analyst sought clarity on the capital needs for the long-term revenue and margin targets, with management emphasizing working capital as the primary need.

Asked by Jatin Agrawal

Warehousing Capacity and Utilization Direct
To be very honest, the exact number, someone is just not getting on to me. It's warehouse, if I talk about in terms of square feet, we are 13.66 lakh square feet of warehouses that we have. So, I'm not telling you on the exact number. ... if I talk about an overall utilization, we are at 99% plus utilization that we are doing.

Analyst inquired about the company's physical infrastructure, and management provided specific figures for warehousing space and high utilization.

Asked by Jatin Agrawal

Working Capital Cycle Direct
So that comes to, you know, 85 to 90. And since these are all corporates with whom we are working on with, 5 days plus, 5 days minus. That's a process that has been there and that is there. And what we project that this is going to continue.

Analyst asked for details on the working capital cycle, and management explained the typical 85-90 day cycle with corporate clients.

Asked by Nupur Karnani

Increase in Borrowings Direct
So see, actually the company has recently shifted its banking from earlier to HDFC to Kotak Mahindra. So, you know, in the process, HDFC has not yet dropped the limits. So if you would see, that is one reason that there is a substantial increase that's being seen in the numbers. ... Number two, since we have done fleet addition to the tune of close to 20 numbers, so there has been an increase in the borrowings because of the finance against the fleet.

Analyst questioned the significant rise in borrowings, and management provided specific reasons including a bank shift and fleet expansion.

Asked by Nupur Karnani

Unutilized IPO Funds Direct
No, still, this is an approximate figure that close to INR1.25 crores is yet unutilized because of, we had utilized the working capital. We had utilized the investment into technology. The one aspect which was utilization into capex, and the capex specifically did not include the vehicles. It was basically into the warehousing capex. ... Before March '26 is where we aim that would be closed and the 100% utilization would be done.

Analyst sought clarification on the utilization of IPO funds, and management detailed the remaining unutilized amount and the timeline for its deployment.

Asked by Nupur Karnani

New Client Acquisitions Direct
See, like in this quarter, we have started operating with Meesho. I'm sure you would be knowing Meesho. We have started operating with Honda, then there is Mother Dairy with whom we have started operating. ... We have done an MoU with CWC, Central Warehousing Corporation. And that's a Government of India company.

Analyst asked for specific new client names, and management provided several key additions, indicating business growth.

Asked by Nupur Karnani

Customer Concentration Risk Partial
See, I'll tell you, if I just go into the customer concentration, at one point, you might feel that my customer concentration is very high with just one customer that is Quick Supply Chain. So I am just putting that. Quick Supply Chain is a reliance entity and our customer concentration, I won't say it is much and highly deployed over there because if you look at it like that, 80% of the economy is dependent on them. ... So all combined, if you will see, then you will see that there is one customer that is giving you a 60% -- 60% revenue that is there but it is actually not that 60%. It is very much bifurcated and divided.

Analyst raised concern about client concentration, and management clarified the diversification within a large client's various divisions.

Asked by Subhanu Bangal

2 min read 6 chapters

Detailed narrative

Q2 FY26 Financial Performance and Growth Drivers

Pranik Logistics reported a strong Q2 FY26, with revenue reaching INR 38.78 crores, marking a substantial 60.77% year-on-year growth. This performance was driven by festive season momentum, infrastructure expansion, improved freight corridors, and higher digital adoption. The company's H1 FY26 revenue stood at approximately INR 78 crores, indicating consistent growth. Management expressed confidence in maintaining this growth trajectory for the remainder of FY26.

EBITDA and PAT Margin Analysis

The company's EBITDA for Q2 FY26 was INR 3.72 crores, with an EBITDA margin of 9.59%. This represents a decline from 12.73% in the same quarter last year. Management attributed this variation primarily to the monsoon season, which impacted sales volumes and led to unexpected maintenance costs. Additionally, PAT margins were affected by depreciation resulting from recent investments in capex, including software and technological advancements. The company aims to restore EBITDA margins to their normal 10-11% range in the upcoming quarters.

Strategic Client Acquisition and Diversification

Pranik Logistics successfully onboarded several new clients in Q2 FY26, spanning consumer, retail, and industry segments. Notable additions include Meesho, Honda, Mother Dairy, and Central Warehousing Corporation (CWC), a Government of India company. While Quick Supply Chain (a Reliance entity) contributes a significant portion of revenue, management clarified that this is diversified across various divisions (apparel, networking, phones, digital, retail, grocery), mitigating client concentration risk.

Warehousing Capacity and Capital Allocation

The company operates 13.66 lakh square feet of warehousing space, maintaining a high utilization rate of over 99%. In terms of capital allocation, INR 96 lakhs out of INR 2.20 crores allocated for warehousing capex have been utilized. The remaining INR 1.25 crores is targeted for 100% utilization by March 2026. Working capital is identified as the major requirement for future growth, alongside potential fleet additions and technological advancements.

Borrowings and Financial Management

Pranik Logistics experienced a significant increase in both long-term and short-term borrowings. This was primarily due to a recent shift in banking partners from HDFC to Kotak Mahindra, the financing of approximately 20 new vehicles for fleet expansion, and increased working capital needs to support growing revenues. Management expects borrowings to normalize as limits from the previous bank (HDFC) are dropped, and the company continues to manage its working capital cycle, which typically spans 85-90 days for corporate clients.

Long-Term Vision and Integrated Logistics Strategy

The company holds an aspirational target of achieving INR 500 crores in revenue by 2029, with EBITDA margins of 11-12% and PAT margins of 6%. This vision is supported by a commitment to 25% growth in revenue, EBITDA, and PAT. Pranik Logistics is focused on building a large logistics empire by offering integrated supply chain solutions, encompassing both transportation and warehousing, and expanding its presence in key regions like Gujarat and Karnataka. The company is also exploring value-added services such as cold chain and packaging.

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