Western Carriers

Western Carriers reported a robust Q3 FY26, with revenue from operations growing 8.63% quarter-on-quarter to INR 478 crores. EBITDA saw a significant 26.31% QoQ increase to INR 24 crores, leading to an improved EBITDA margin of 5.0%. Profit after tax (PAT) also expanded by 22.22% QoQ to INR 11 crores, with PAT margin reaching 2.3%. Operationally, domestic volumes grew 14.86% YoY to 23,565 TEUs, and EXIM volumes increased 14.36% YoY to 38,638 TEUs, demonstrating strong growth across both segments.

The global logistics market is undergoing profound transformation, driven by increasing supply chain complexities, AI adoption, and a focus on sustainability. The 4PL market, which orchestrates end-to-end networks, is booming, projected to grow at a CAGR of 7-8% over the next decade, fueled by e-commerce and green logistics demands. India's logistics sector is also rapidly evolving, with market estimates projecting growth to USD 380-450 billion by FY27, at a CAGR of 8-10%, supported by e-commerce and industrial freight.

Government initiatives like PM Gati Shakti, the National Logistics Policy, and ULIP are significantly improving India's logistics performance and reducing costs. The recent India-EU Free Trade Agreement and India-US interim trade deal are expected to dramatically boost bilateral trade volumes and EXIM cargo movement. These agreements will enhance competitiveness for Indian sectors like textiles, chemicals, and engineering goods, creating substantial tailwinds for logistics providers like Western Carriers.

The company has already invested over INR 30 crores in capex during H1 FY26, primarily in heavy equipment, specialized containers, and road assets, aligning with its business policies and trade agreements. This investment supports long-term commitments with major customers like Vedanta (INR 1,089 crores work order) and Jindal Stainless. Western Carriers is leveraging its MMCT at Devaliya (near Morbi) to expand business from Western India and its fixed services across India.

Western Carriers adopts a customer-dependent, customized, and flexible approach to warehousing, providing solutions as part of its 4PL offerings rather than building speculative capacity. Automation is a key focus, with efforts directed towards large warehousing plays and advanced Warehouse Management Systems (WMS) to ensure efficient operations and meet customer requirements like FIFO terms. This strategy aims to integrate warehousing seamlessly into broader multimodal networks.

While metals constituted 55% of FY25 revenue, management asserts this exposure is well-hedged by diversifying across various metal types (aluminum, zinc, steel) which have different market cycles. The non-metals segment, including industrial products, chemicals, and food-grade items, is growing exponentially and currently accounts for 45-50% of cargo. Western Carriers aims to achieve a 50-50 mix between metals and non-metals in its revenue streams over the next two to three years, further de-risking its business model.