VRL Logistics (VRLLOG) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 total income was INR 831 crore, flat year-on-year and up 3% sequentially, driven by improved realizations, new client additions, and return of lost accounts.

• Profit after tax for Q3 was INR 65 crore, up 9% year-on-year and 30% sequentially, aided by lower interest costs.

• EBITDA margin for Q3 FY26 improved to 20.9%, up 20 bps year-on-year, supported by higher realization and cost control.

• Interim dividend of INR 5 per share was approved.

• Unaudited financial results for the quarter and nine months ended 31 December 2025 were approved, with independent auditor review confirming no material misstatements.

Financial highlights

• Q3 FY26 EBITDA at INR 174 crore, up 1% year-on-year; 9M FY26 EBITDA at INR 490 crore, up 20% year-on-year.

• Realization per ton increased 10% year-on-year in Q3 FY26; tonnage declined 9% year-on-year due to exit from low-margin business.

• Net debt reduced to INR 272 crore as of December 2025, down from INR 304 crore in September 2025 and INR 470 crore a year earlier.

• Fuel cost as a percentage of income fell to 24.8% in Q3 and ~25% in 9M FY26 from higher levels a year earlier.

• Revenue from operations for the quarter ended 31 December 2025 was INR 82,696.23 lakhs, nearly flat year-over-year.

Outlook and guidance

• Expecting 3-4% sequential tonnage growth in Q4 and 10-11% tonnage and revenue growth in FY27, targeting revenue of INR 3,600 crore and EBITDA of INR 730-740 crore.

• Realization per ton to remain stable at current levels; no further price hikes planned unless cost structure changes.

• CapEx for FY27 projected at INR 350 crore, including INR 160-170 crore for 500 new vehicles and similar amount for land/building purchases.

• Focus on intensified marketing and strategic expansion in untapped geographies to drive volume growth.

• No incremental financial impact expected from the new Labour Codes as per current assessment; company will monitor for future regulatory changes.