Tejas Cargo

Tejas Cargo India Limited achieved a total income of INR 636.5 crore in FY26, marking a 25.2% year-on-year growth, with Profit After Tax (PAT) increasing by 9.4% to INR 20.90 crore. The year was pivotal for diversification, strengthening the technology backbone, improving fleet productivity, and expanding into higher-potential logistics segments, aiming to become a future-ready logistics enterprise. The company maintained operational discipline, sound governance, and a clear focus on long-term value creation, deploying IPO proceeds towards fleet expansion and operating capacity.

During FY26, the company expanded its owned fleet by adding 205 vehicles, including 40 car carriers, bringing the total to 1,339 vehicles as of March 31, 2026. Fleet utilization remained strong at 82% for the full year, reflecting operational efficiency and sustained demand visibility across customers. Revenue per trip improved by 9.3% for the full year, driven by a better client route mix and a higher proportion of premium verticals. The company also sold 65 older vehicles with high maintenance costs.

Tejas Cargo strengthened its presence in emerging logistics verticals such as coal logistics, fly ash transportation, mining logistics, freight forwarding, and car carrier operations. These newer segments collectively contributed 5.5% to FY26 revenue. A significant 5-year bauxite mining logistics contract from CMDC was secured, with an expected revenue of INR 35-40 crore (excluding selling rights), marking a key milestone in expanding mining capabilities. The company is actively pursuing tenders from Coal India and Odisha government for mining materials.

The company enhanced its digital capabilities by deploying ERP modules, control tower operations, and advanced fleet monitoring systems, including GPS tracking, ADAS, and AI-enabled cameras. The customer portfolio remained diversified across sectors like logistics, steel, cement, and retail, with over 90% of revenue from large corporate clients. The contribution from the top 10 customers reduced to 73% in FY26 from 84% in FY24, indicating improved diversification while maintaining strong client engagement.

EBITDA margins moderated to 18.4% in FY26, primarily due to higher market hiring costs, increasing toll, and insurance expenses. While diesel costs are largely protected by escalation clauses in contracts, the price advantage from the Peso license reduced from 10-14% to 3-4% in H2 FY26. Management is actively negotiating with clients to revise contracts to account for rising toll and insurance costs, aiming to improve profitability.

The company is actively pursuing EV deployment, driven by clients' net-zero targets and the push for electric vehicles in industries like cement and steel. A recent order for 10 EV vehicles from Dalmia Cements for an eight-year contract, covering 200-250 km routes, highlights this trend. Management expects a significant uptake in EV numbers in the next two to three months, with FY27 investments in EVs and ICE trucks expected to be similar to FY26, funded by internal accruals and debt.