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Steady 4QFY26; Seaways margin offsets weakness in Freight and Supply Chain

* Revenue grew ~12%% YoY to ~INR13.2b in 4QFY26 (in line).

* EBITDA margin came in at 10.8% in 4QFY26 (+50bp YoY and +60bp QoQ), against our estimate of 10.3%.

* EBITDA grew ~11% YoY to INR1.4b (7% above our estimate), while APAT grew ~8% YoY to ~INR1.2b (in line).

* Supply Chain and Seaways revenue grew ~16% YoY, while Freight reported ~13% YoY growth.

* EBIT margin for Freight/Supply Chain/Seaways stood at 1.8%/5.4%/39.1%, respectively, in 4QFY26. EBIT margin for the Freight and Supply Chain business contracted 50bp and 60bp YoY, while EBIT margin for the Seaways business expanded ~270bp on a YoY basis.

* The company declared its final dividend of INR1 per share.

* In FY26, revenue grew 9%, whereas EBITDA and PAT grew 12% and 11%, respectively.

* Seaways contributed to ~63% of EBIT, driven by a ~270bp expansion in EBIT margins to 39.1%. In contrast, Freight and Supply Chain EBIT contributions declined to ~10% and ~26%, respectively (vs. 21%/30% in 4QFY24), owing to subdued segment margins of 1.8% and 5.4%, declining 50bp/60bp YoY, respectively.

* TRPC delivered a steady performance despite headwinds arising from the West Asia crisis, supported by healthy consumer-led demand, though margins in the Freight business remained subdued. The Supply Chain segment posted healthy revenue growth; however, margins remained muted due to the gradual ramp-up of new contracts. Seaways continued to anchor profitability, aided by higher bunker-linked realizations. Going ahead, we expect growth to be driven by sustained strength in the Seaways segment, steady expansion in Supply Chain, and gradual improvement in Freight margins, supported by a higher LTL mix and increasing multimodal logistics adoption through new ships and rakes. We broadly retain our estimates and reiterate our BUY rating with a TP of INR1,150, based on 17x FY28E EPS.

Seaways drives earnings; Freight and SCS face near-term margin headwinds

* Freight Division: Revenue grew ~13% YoY during the quarter despite headwinds from the West Asia crisis, which impacted March’26 volumes. Management indicated that growth would have been higher in the absence of these disruptions. Further, the company expects limited margin impact from rising fuel prices, as most freight contracts have built-in pass-through mechanisms that automatically adjust pricing in line with diesel price movements. EBIT margin stood at 1.8%, declining 50bp YoY.

* Supply Chain Solutions (SCS):

Supply Chain revenue grew ~16% YoY in 4QFY26, driven by steady demand across PV mobility, retail, consumer, and quick commerce. EBIT margin stood at 5.4%, contracting 60bp YoY. The company secured several new contracts in 4QFY26, which are expected to materialize sooner.

* Seaways Division:

Seaways revenue grew ~16% YoY in 4QFY26, with a strong EBIT margin of 39.1%, supported by higher bunker rates. Management expects the Seaways business to grow at ~5-10% YoY, with margins remaining similar to current levels.

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