VRL Logistics (VRLLOG) Q2 25/26 earnings summary

Executive summary

• Demonstrated resilience and stable performance in Q2 FY26, with total income of ₹804 crore, up 0.2% YoY, despite GST changes and strategic exit from low-margin contracts.

• EBITDA for Q2 FY26 rose 17% YoY to ₹158 crore, with margin improving to 19.7% from 16.9% YoY; H1 FY26 EBITDA up 33% YoY to ₹316 crore.

• Net profit for Q2 FY26 increased 39% YoY to ₹50 crore; H1 FY26 PAT nearly doubled to ₹100 crore, with margin improvement from 3% to 6.4%.

• Focused on strategic expansion, cost control, and improved operational efficiency, leveraging a robust owned-asset infrastructure.

• Unaudited financial results for the quarter and half year ended 30 September 2025 were approved, with the company operating solely in the goods transport segment within India.

Financial highlights

• Revenue from operations for Q2 FY26 was ₹797 crore, up 7% sequentially; H1 FY26 revenue at ₹1,541 crore, up 1% YoY.

• Cash flow from operations in H1 FY26 improved to ₹334 crore from ₹217 crore YoY.

• Net debt reduced to ₹304 crore as of Sep 2025 from ₹396 crore in Mar 2025.

• Return on Capital Employed increased to 18% from 14% in FY25.

• Receivables days remained at 12, among the lowest in the industry.

Outlook and guidance

• Expecting freight volumes to improve in H2 FY26, with 5-6% sequential growth in Q3 and 7-8% in Q4.

• Full-year tonnage expected to decline 4-5%, but revenue growth projected at 4% if realizations are maintained.

• EBITDA margin of around 19% is expected to be sustainable.

• Plans intensified marketing and strategic expansion into untapped geographies to drive volume growth.

• From FY27 onwards, volume growth of 8-10% is targeted.