Western Carriers (India) Limited

Western Carriers reported a stable performance in FY25, with revenue from operations growing 2.4% to ₹1,726 crores from ₹1,686 crores in FY24. This was achieved despite global trade challenges, geopolitical conflicts, and supply chain disruption^🌐s impacting the EXIM segment. The Indian economy showed signs of positive recovery, with GDP expanding 6.2% in Q3 and retail inflation falling to a 6-year low of 3.3% in March. The company anticipates sustained growth in the logistics sector, driven by increased demand and infrastructure investments.

Domestic volumes saw a sharp 31% year-on-year increase, reaching 79,840 TEUs compared to 60,863 TEUs in FY24. This growth was primarily driven by strong demand for specialized containers, particularly in the steel industry. In contrast, EXIM volumes declined by 12% to 133,635 TEUs from 151,637 TEUs in FY24, mainly due to the tough geopolitical situation and supply chain disruption^🌐s. Management is hopeful for an EXIM recovery if the Red Sea situation normalizes.

The company reinforced its order book with several key mega-orders, including a ₹1,089 crores 4-year contract from Vedanta Limited for end-to-end supply chain management. Other significant wins include a ₹170 crores contract from Hindustan Zinc Limited and a ₹41 crores project from Tata Steel Limited. These long-term commitments provide strong revenue visibility and validate the trust placed by esteemed customers, enabling confident planning and investment in infrastructure.

In FY25, Western Carriers undertook a massive capex of approximately ₹70 crores, strategically deployed for acquiring specialized handling equipment like container reach stackers, forklifts, and specialized containers. For FY26, the company intends to increase its capex to approximately ₹100 crores, marking its largest capex in history. New rail services have been launched from Western India to Bengaluru and Jaipur, with plans to start services in Central India (Indore and Kathuwas) by the end of May, targeting the MSME business.

The company is focused on improving operational efficiency by reducing empty haulage through triangulation and optimizing asset turnaround time. It is continuously updating its transport management system, with new initiatives expected to go fully live by Q3 FY26, aiming for greater flexibility, visibility, and improved financials. While exploring AI-based tools for predictive models in warehousing and supply chain, there is no exact timeline for piloting these solutions yet.

EBITDA for FY25 stood at ₹120 crores with a margin just south of 7%, and PAT was ₹65 crores with a 3.8% margin. Margins were impacted by pressures in the EXIM segment but are expected to show stability and improve steadily in FY26. The working capital cycle has been long due to new business launches and stretched project timelines, which have extended from 90-130 days to 120-150 days. Management expects the working capital cycle to streamline effectively in FY26.

Management highlighted a significant structural shift towards multimodal and integrated logistics solutions, with customers increasingly seeking comprehensive supply chain partners. The Indian multimodal logistics market, valued at ₹1,714 billion in FY24, is projected to grow at a CAGR of 22% to ₹4,667 billion by FY29. From its IPO, ₹156 crores remain unutilized, held in fixed deposits, and are earmarked for future capex, providing ample liquidity for planned investments.