Western Carriers (India) Limited — Q3 FY26 earnings call

Call held 16 Feb 2026

Management summary

Western Carriers delivered a resilient Q3 FY26, with revenue growing 8.63% QoQ to INR 478 crores and PAT increasing 22.22% QoQ to INR 11 crores. Both domestic and EXIM volumes saw robust YoY growth of over 14%. The company is strategically investing in capex and leveraging government initiatives, while addressing challenges like subdued operating cash flow due to working capital needs and managing gross margin compression.

Highlights

  • Revenue from operations for Q3 FY26 reached INR 478 crores, marking an 8.63% quarter-on-quarter growth from INR 440 crores in Q2 FY26.

  • EBITDA expanded by 26.31% QoQ to INR 24 crores, with the EBITDA margin improving from 4.3% in Q2 to 5.0% in Q3 FY26.

  • Profit after tax (PAT) grew 22.22% QoQ to INR 11 crores, and PAT margin improved from 2.0% to 2.3%.

  • Domestic volumes increased by 14.86% YoY to 23,565 TEUs, while EXIM volumes grew 14.36% YoY to 38,638 TEUs, reflecting strong operational momentum.

  • The company has completed over INR 30 crores in capex for FY26 H1, primarily in heavy equipment, specialized containers, and road assets, aligning with business growth and trade agreements.

Concerns

  • Gross margins declined from 14% to 12% year-over-year, attributed by management to a slight 2% decrease in EXIM lead.

  • Operating cash flow remains subdued due to increased working capital requirements driven by business growth, though management expects improvement with better realizations in the coming quarters.

Key financials

  1. Revenue ₹478 Cr +8.6%QoQ
  2. EBITDA ₹24 Cr +26.3%QoQ
  3. PAT ₹11 Cr +22.2%QoQ
  4. EBITDA Margin 5% +16.3%QoQ
  5. PAT Margin 2.3% +15%QoQ
  6. Domestic Volumes 23,565 TEUs +14.9%YoY
  7. EXIM Volumes 38,638 TEUs +14.4%YoY

What they filed

Q1 FY27: revenue up 11.8%, net profit down 19.5% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue431 443 429 416 440 +2%478 +8%496 +16%465 +12%
EBITDA36 23 25 21 19 −48%24 +2%21 −14%19 −10%
Net profit19 13 14 11 9 −53%11 −18%8 −41%9 −19%
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

  • Metals
    55% Share of FY25 Revenue
  • Non-metals (Industrial Products, Chemicals, Food Grade)
    45% Share of Cargo

Capital allocation

medium confidence
  • Capex Capex disclosed
    • Heavy equipment, specialized containers, and road assets
    Your company has already completed a capex of more than INR30 crores in this year, mostly into heavy equipment, specialized containers, and road assets in line with our business policies as well as in line with the trade agreements.

Guidance & targets

Capacity

  • Western DFC Completion Capacity · March 2026 · High confidence Complete
    The Western DFC is expected to be complete by March 2026, that is the end of next month, to JNPT, which is expected to give a very big boost to EXIM business on the North to West corridor.

    — Kanishka Sethia

Segment Mix

  • Metals vs Non-metals Revenue Mix Segment Mix · next two or three years · Medium confidence 50-50
    So we are basically growing towards a 50-50 mix going into the next two or three years.

    — Kanishka Sethia

What to watch in Q4 FY26

Western DFC Completion Status

March 2026
Current Nearing completion
Target Completed

Why it matters

The completion of the Western DFC is expected to significantly boost EXIM business on the North to West corridor, impacting volumes and efficiency.

The Western DFC is expected to be complete by March 2026, that is the end of next month, to JNPT, which is expected to give a very big boost to EXIM business on the North to West corridor.

Risks & concerns

  • Increased working capital requirements

    medium

    Business growth has led to increased working capital requirements, impacting operating cash flow, though management expects improvement with better realizations.

    Management acknowledged

  • Gross margin compression

    medium

    Gross margins declined from 14% to 12% YoY, attributed by management to a slight 2% decrease in EXIM lead.

    Analyst acknowledged

  • Past geopolitical situation impacting EXIM business

    low

    The geopolitical situation in previous quarters had a hard impact on EXIM business, but the situation is now stabilizing, and demand is picking up.

    Management acknowledged

Q&A highlights

5 direct
Gross margin decline Partial
Yes so Prateek, there is, like I pointed out, there is a slight decrease in the EXIM lead by about 2%.

Analyst questioned the year-over-year gross margin compression, and management attributed it to a specific factor in EXIM business.

Asked by Prateek Shah

CONCOR partnership and potential competition Direct
So Kaustav, it's actually complimentary. It's not something that as a policy they do not compete with their own business associates. We work with them in getting further businesses.

Clarifies that CONCOR's focus on multimodal logistics parks is seen as complementary rather than competitive, reassuring investors about a key partnership.

Asked by Prateek Shah

Warehousing strategy and automation Direct
So Prateek, our warehousing play is completely dependent on the customer. Basis the customer's requirement, we create, a customized solution of which warehousing is a part and parcel of it. We do not build or operate warehousing as a business per se, but rent out or rent out warehousing as per requirement for 4PL as well as first mile and last mile of the customer. Automation is something which is a key focus for us...

Details the company's asset-light, customer-driven approach to warehousing and its focus on integrating technology for efficiency.

Asked by Prateek Shah

Impact of DFCCs and trade deals on long-term rates Direct
What happens is, I'll give you a simple example. Say you send a train which is running on the regular, not one of your dedicated freight corridors. The concept of a dedicated freight corridor is defined in its name. That means the freight corridor is dedicated for freight... When it comes to margin, margin Kaustav depends completely on the route at the time, the seasonality and the amount of volumes that you are able to generate. The higher the volumes, the better the frequencies, and the more the operations efficiencies that you can bring around, the better your margins are. So it's, it's hard to give a holistic answer, it's not a simple answer to give, but I would like to say, if you are able to generate better and better volumes and run your supply chain more efficiently, your margins will tend to go up.

Explains how new infrastructure and trade agreements will drive efficiency, competition, and volume-led margin improvements, rather than a direct impact on rates.

Asked by Kaustav Bubna

Subdued operating cash flow Direct
So the cash flow, is due to, the situation is due to the increase in working capital requirements as the business has been growing... It is expected to improve very dramatically and quickly as our realization increases. So that's what it is Sunidhi. We expect our realizations to improve in this quarter and the next, and we hope that the cash flows then will start turning.

Identifies increased working capital due to growth as the cause for subdued cash flow and outlines management's expectation for improvement with better realizations.

Asked by Sunidhi Joshi

Metals revenue concentration and diversification strategy Direct
So even though 55% of our metals, of our business is coming from metals, I want to point out that it is quite well hedged in itself that we do metals of all types... So the metals itself creates a hedge because we work on all the metals across the spectrum in the country... So we are basically growing towards a 50-50 mix going into the next two or three years.

Addresses concerns about revenue concentration in metals by highlighting diversification across metal types and a strategic shift towards a 50-50 mix with rapidly growing non-metals segments.

Asked by Sunidhi Joshi

2 min read 6 chapters

Detailed narrative

Q3 FY26 Financial and Operational Performance Highlights

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.

Global and Indian Logistics Sector Outlook

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 and Policy Support

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.

Western Carriers' Strategic Focus and Capex

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.

Warehousing and Automation Strategy

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.

Diversification and Segment Mix

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.

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