S J Logistics (I — Q2 FY26 earnings call

Call held 18 Nov 2025

Management summary

S J Logistics reported robust Q2 and H1 FY26 results, driven by strong revenue growth and significant margin expansion. The NVOCC division showed exceptional performance, and the company commenced direct vessel operations, a strategic move to enhance control and reliability. Management provided optimistic full-year guidance for revenue growth and PAT margins, while also addressing the need for increased working capital to support new initiatives.

Highlights

  • Q2 FY26 Revenue grew 26.5% YoY to ₹157.1 crores, demonstrating strong performance.

  • Q2 FY26 EBITDA increased 61.4% YoY to ₹28.4 crores, with EBITDA margin expanding by 391 bps to 18.1%.

  • H1 FY26 NVOCC revenue surged by 1427% to ₹31.93 crores, reflecting successful expansion and market traction.

  • Direct vessel operations commenced, providing greater control over logistics and opening new growth opportunities.

  • Project cargo division continued strong growth, contributing ₹126.6 crores to Ocean Cargo revenue, up 40%.

Concerns

  • Working capital intensity is expected to increase in the next 2-4 quarters due to chartered vessel operations.

  • Geopolitical conditions are acknowledged as a factor, though the diversified business model acts as a buffer.

Key financials

2 periods

Q2 FY26

  • Revenue
    ₹157.1 Cr
    YoY +26.5%
  • EBITDA
    ₹28.4 Cr
    YoY +61.4%
  • EBITDA Margin
    18.1%
  • PAT
    ₹18.1 Cr
    YoY +42.5%
  • PAT Margin
    11.5%

H1

  • FY26 Revenue
    ₹282.9 Cr
    YoY +25.8%
  • FY26 EBITDA
    ₹50.6 Cr
    YoY +59.6%
  • FY26 EBITDA Margin
    17.9%
  • FY26 PAT
    ₹32.4 Cr
    YoY +38.1%
  • FY26 PAT Margin
    11.4%

What they filed

Q4 FY26: revenue up 91.9%, net profit up 71.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ4 FY24Q1 FY25Q2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q4 FY26
Revenue103 101 145 136 186 +81%126 +25%186 +28%261 +92%
EBITDA9 14 18 20 27 +200%22 +57%31 +72%43 +115%
Net profit8 11 12 14 16 +100%14 +27%17 +42%24 +71%
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 Revenue
₹526.41 Cr Total
  • Ocean Cargo (H1 FY26) ₹243.5 Cr 46.3%
  • ODC, Tyre & Project Cargo (H1 FY26) ₹126.6 Cr 24.0%
  • Yarn & Yarn Commodities (H1 FY26) ₹106.62 Cr 20.3%
  • NVOCC (H1 FY26) ₹31.93 Cr 6.1%
  • Other Commodities (H1 FY26) ₹10.26 Cr 1.9%
  • Air Cargo (H1 FY26) ₹7.5 Cr 1.4%

Capital allocation

high confidence
  • Debt Debt disclosed
    I am also a chartered accountant. So, I will tell you how it operates, basically. See what happens. We are targeting a certain Mediterranean destination along with the Middle East. I am talking about the Middle East destinations, the Gulf, upper Gulf sectors. We are not going to operate on a longer route. See what happens, our vessel is going to go from Kandla. We are going to have a service vessel. We are not going to have an ad-hoc call. That's the reason we are giving the service. So, it will be a consistent service which we are going to give to our customers from Kandla. What we have done we have started with the smaller vessels. We are not deploying 1,500 TEUs or 1,100 TEUs. We are deploying only 1,100 TEUs. And technically, if you see the heavy cargo, we can load around 700 TEUs on a vessel. So, we are going to take our cargo from Kandla. The next call will be Jebel Ali, then Jeddah and Alexandria. So, from Alexandria and Jeddah, we have made an arrangement with the operators which operate in that segment. The cargo will be going to the ports of Sudan, Aqaba, many other sectors, Barbara, and Latakia. And at the same time, the cargo which will go to Alexandria, we will give the service to the Novorossiysk, that is Russia, as well as to Turkey, Mersin, Istanbul, Gemlik, Kumport and the cargo will be going to Libya also. Libya is a gateway for almost all the Middle East countries. And many of those countries are sanctioned except Libya. Libya is not a sanctioned country. So, the cargo usually goes to Libya. It's a gateway for the other Middle East countries. So, we are doing this NVOCC operation from last one year now, and we know how much cargo is moving, or vessel charter contracts or NVOCC slot agreements, and is it recurring or a one-time arrangement?
  • Liquidity Liquidity disclosed Company is discussing with bankers for additional working capital facilities to support new operations.
    We will also require a working capital so that we are talking to our bankers also and shortly, we will have additional working capital facilities from our bankers also.

Guidance & targets

Profitability

  • PAT Margin Profitability · FY26 · High confidence 12% to 12.5%

    Previously 9% → 12% to 12.5%

    I told that our PAT was around 9%. So, first half, we went up to 11.5%. What we are targeting in our last two quarters, that is October to December and Jan to March, it definitely, historically, it is better than the first two quarters. So, what we have achieved in first two quarters, our contribution on top line as well as to the bottom line is going to go up. If you see in a percentage-wise, we are going to target around 35% growth in top line and definitely, we want to have around 12.5% to 12% on PAT.

    — Rajen Shah, Chairman & Managing Director

Revenue

  • Top Line Growth Revenue · FY26 · High confidence 35%
    we are going to target around 35% growth in top line and definitely, we want to have around 12.5% to 12% on PAT.

    — Rajen Shah, Chairman & Managing Director

  • Top Line Growth Revenue · Next financial year (FY27) · Medium confidence 35% to 40%
    When we target turnaround of say, next year, I am targeting, suppose another 35% to 40% growth next year from this financial year.

    — Rajen Shah, Chairman & Managing Director

Operational

  • Vessel Operations Contribution to Top Line Operational · Next financial year · Medium confidence 30% to 40%
    What we are targeting out of our total top line, we are targeting that vessel operation next year should give around 30% to 40% of our top line.

    — Rajen Shah, Chairman & Managing Director

  • Number of Chartered Vessels Operational · by end of December 2025 · High confidence Four vessels
    by the end of December, we will have all the four vessels in our hands

    — Rajen Shah, Chairman & Managing Director

What to watch in Q3 FY26

Financial impact of direct vessel operations

Next quarter / Next financial year
Current Commenced, initial impact not fully reflected in H1 FY26 financials
Target Exact figures for top-line and bottom-line contribution from vessel operations

Why it matters

This new initiative is expected to be a significant growth driver and margin enhancer, and its financial contribution will be key to future performance.

So, the exact figure will come to know in next one quarter because we are almost towards the end of November now. And we got one vessel in the second week of November, and the one more vessel is coming by the end of this month. So, exact operations will come to know, but the full operations and the full top line and the bottom-line effect will come in the next financial year.

Risks & concerns

  • Geopolitical conditions impacting global markets

    medium

    The company's diversified business model and strategic focus on the Middle East and Mediterranean act as a buffer against slowdowns in other global markets.

    Management acknowledged

Q&A highlights

7 direct
Main drivers for growth in ODC, tyre, and Project Cargo segments. Direct
Because the tyre as well as the ODC cargo, definitely we are expert in handling this particular segment... The volume, what we are doing, year to year we are increasing the volume. So, it is giving us a good return, basically.

Clarifies the company's expertise and consistent volume growth in these high-margin segments, driven by demand from African and Latin American continents for earth-moving equipment and transmission tower projects.

Asked by Raman KV

How project cargo is insulated from global freight price fluctuations. Direct
If you see the African continent as well as to the Latin American continent, there are many countries for which the electrification is still not up to the mark... So, there is ample scope where the transmission tower project is going to be there and continued participation will be there from Indian manufacturers as well as from the Chinese manufacturers.

Explains the structural demand for project cargo in developing regions, making it less susceptible to short-term rate volatility.

Asked by Raman KV

Difference between NVOCC business and ocean cargo business, and potential margin differences. Direct
The NVOCC operation and the ocean freight operation, when we talk about the forwarding ocean freight operations, the ownership of the container and the container on the vessel which we load belongs to the main line operation... Coming back to the NVOCC division, where we have our own containers, you can have the container in a three-way... So, this is the basic difference.

Provides a clear distinction between the two business models, highlighting NVOCC's asset-light approach (mostly leased containers) and greater control over the logistics chain.

Asked by Raman KV

Explanation for the increase of over ₹43 crores in long-term loans and advances. Direct
When we talk about the security, it has gone up mainly because of the charter of the vessels, basically. When you have a charter agreement with the vessel operation, you have to have a deposit with them... this all-security deposit, the main portion is the security deposit for the vessel chartering.

Clarifies that the increase in loans and advances is primarily due to security deposits for chartering vessels, indicating investment in expanding direct vessel operations.

Asked by Nupur Kogta

Operating economics, fixed commitments, and potential increase in working capital intensity for chartered vessel operations. Partial
So, that will definitely give an advantage as far as top line and the bottom line is concerned. So, the exact figure will come to know in next one quarter because we are almost towards the end of November now... but the full operations and the full top line and the bottom-line effect will come in the next financial year.

Management confirms the strategic advantage of vessel operations for top-line and bottom-line, but defers specific financial impact details to the next quarter, implying initial setup costs and ramp-up.

Asked by Nupur Kogta

Relation of increasing long-term borrowings to lease finance for containers. Direct
It is mainly a lease finance that is as per the accounting standard because we have around 3,000 containers... Otherwise, there is no increase as far as long-term borrowings are concerned.

Clarifies that the increase in long-term borrowings is primarily for lease financing of containers, not traditional debt, aligning with an asset-light model.

Asked by Nupur Kogta

Outlook for FY26 margins and top-line growth. Direct
we are going to target around 35% growth in top line and definitely, we want to have around 12.5% to 12% on PAT.

Provides specific full-year guidance for revenue growth and PAT margin, indicating confidence in continued performance improvement.

Asked by Deepak Poddar

Long-term growth visualization and normalized growth rate. Direct
If you go and check the figures, you can see the growth... we are into the service industry. Despite all the odds in the market, if you compare with our competitors with due respect to everyone, you can see their growth and you can see our growth.

Management emphasizes historical performance and diversified activities as drivers for sustained growth, suggesting a focus on consistent, disciplined expansion rather than aggressive, short-term targets.

Asked by Dinesh Kulkarni

2 min read 6 chapters

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.

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