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ICRA has said that the Indian road logistics industry is expected to clock a high single-digit growth this fiscal (FY24) on an elevated base of the previous year. It added that the outlook is stable. It also expects the demand momentum to continue in FY24, aided by stable domestic consumption and investment demand.

It mentioned the downside risks to the estimates remain from any material tapering of demand due to high inflationary and interest rate regime, the emergence of any further Covid waves, or a sub-par monsoon impacting the overall economic health, given its strong linkage to economic activity on an aggregate basis.

According to it, quarterly revenues for the logistics sector witnessed a marginal contraction of 2 per cent in Q3 FY23, compared to the earlier quarter of the same year. Following two quarters of stable demand, economic activity was uneven in the third quarter of the previous fiscal despite robust demand for contact-intensive services and upbeat sentiment during the festive season. It stated ‘We expect the revenues in Q4 FY2023 to be better than Q3, supported by favourable demand and realisations.’