Detailed Narrative
Q2 & H1 FY26 Strong Financial Performance
S J Logistics reported a robust Q2 FY26 with revenue reaching ₹157.1 crores, marking a 26.5% year-on-year growth. EBITDA for the quarter increased by 61.4% to ₹28.4 crores, with the EBITDA margin expanding by 391 basis points to 18.1%. Profit after tax grew 42.5% to ₹18.1 crores, and the PAT margin improved by 130 basis points to 11.5%. For the first half of FY26, consolidated revenue stood at ₹282.9 crores (up 25.8%), EBITDA at ₹50.6 crores (up 59.6%), and PAT at ₹32.4 crores (up 38.1%).
Exceptional NVOCC Division Growth and Strategic Expansion
The NVOCC division demonstrated exceptional performance, with revenue scaling from ₹2.09 crores in H1 FY25 to ₹31.93 crores in H1 FY26, representing a phenomenal growth of over 1,400%. This significant increase is attributed to the company's expanded network and strong traction across key trade corridors including the Middle East, Red Sea, Mediterranean, Africa, Libya, Turkey, and Russia. The company maintains an asset-light model for NVOCC, primarily utilizing leased containers, which supports its rapid and strategic expansion.
Commencement of Direct Vessel Operations
A key strategic milestone was the commencement of direct vessel operations under S J Logisol Shipping LLC, Dubai. The maiden voyage connected Kandla, Jebel Ali, Jeddah, and Alexandria, with plans to have all four chartered vessels operational by the end of December 2025. This initiative aims to provide greater control over routine, scheduling, and space management, thereby enhancing reliability for clients. Management anticipates vessel operations to contribute 30-40% of the total top line in the next financial year.
Resilient Project Cargo Division Performance
The project cargo division, encompassing ODC and tyre cargo, continued its strong growth trajectory. In H1 FY26, this segment contributed ₹126.6 crores to Ocean Cargo revenue, marking a 40% increase. This segment is considered relatively insulated from short-term global freight rate fluctuations due to its reliance on long-cycle investments. Demand for earth-moving equipment and transmission tower projects in South American and African continents remains a significant driver, leveraging the company's expertise in cargo clearance and last-mile delivery.
Capital Allocation and Working Capital Management
The increase of over ₹43 crores in long-term loans and advances is primarily due to security deposits required for vessel chartering agreements. Similarly, the rise in long-term borrowings is largely attributed to lease financing for approximately 3,000 containers, aligning with the company's asset-light strategy. To support the increased working capital intensity associated with new vessel operations and container leasing, the company is actively engaged in discussions with bankers to secure additional working capital facilities.
Future Outlook and Growth Targets
Management expressed confidence in sustaining its growth momentum, targeting a full-year FY26 top-line growth of around 35% and a PAT margin of 12% to 12.5%. For the subsequent financial year (FY27), the company aims for a top-line growth of 35% to 40%. The strategic focus remains on scaling multi-modal capabilities, expanding geographic presence, and investing in technology-driven efficiency to drive margin improvement and service differentiation.