Company Update : VRL Logistics Ltd by Motilal Oswal Financial Services Ltd
In-line performance
Earnings snapshot – 2QFY26
* VRL’s revenue was flat YoY at INR8.0b (+7% QoQ), in line with our estimate.
* Volume dipped 11% YoY to 0.97m tons, while realization grew by 12% YoY to INR 8,079/ton, driven by a price hike. Volume drop was mainly due to contract restructuring and the voluntary exit from certain low-margin contracts.
* EBITDA margins stood at 19% (+240bp YoY and -140bp QoQ), in line with our estimate. EBITDA margin continued to be robust despite volume pressure, driven by cost rationalization efforts. EBITDA grew ~14% YoY to INR1.5b in (in line).
* Aided by strong operating performance, APAT increased 40% YoY to INR499m (in line).
* Fuel costs were ~25.6% of total income in 2QFY26. Lorry charges fell to 4.4% from ~5.7% of total income YoY.
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SEBI Registration number is INH000000412
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