ACCURACY - Accuracy Shippi.

📊 NSE: ACCURACY 🏢 Miscellaneous 📅 Last Updated: 12/13/2025 17:48

💰 Financial Performance

Revenue Growth by Segment

Total revenue grew 33.5% YoY to INR 946.06 Cr. Segmental revenue split shifted with Logistics Services increasing to 72% (INR 681.16 Cr) from 63%, Commercial Vehicles decreasing to 21% (INR 198.67 Cr) from 27%, and Petrol & Petroleum Products decreasing to 7% (INR 66.22 Cr) from 9%.

Profitability Margins

Gross margins for FY25 stood at 25% (INR 236.5 million). Net Profit Ratio improved significantly from 0.07% to 0.48% due to a 637% increase in standalone profits. Return on Equity (ROE) rose from 0% to 4% as net profit after taxes reached INR 4.65 Cr.

EBITDA Margin

EBITDA margin for FY25 was 2.5% (INR 23.65 Cr), representing a 30% YoY increase from INR 17.13 Cr in FY24, driven by operational efficiency and cost optimization.

Capital Expenditure

Historical CapEx for FY25 was INR 7.39 Cr (73.85 million), a decrease from INR 9.27 Cr (92.67 million) in FY24. Planned expenditure is derived from a 5-year budget based on a Discounted Cash Flow model.

Credit Rating & Borrowing

Total debt stood at INR 130.41 Cr (1304.11 million) as of March 31, 2025. Interest expense for the year was INR 11.88 Cr (118.81 million), implying an average borrowing cost of approximately 9.1%.

⚙️ Operational Drivers

Raw Materials

Key inputs include Motor Vehicles for resale (87.5% of purchase costs, INR 187.94 Cr) and Fuel (12.5% of purchase costs, INR 63.32 Cr).

Raw Material Costs

Purchase of stock in trade totaled INR 214.79 Cr, representing 22.7% of total revenue. Motor vehicle purchases grew 5.3% YoY, while fuel purchases for resale decreased by 5.7% YoY.

Manufacturing Efficiency

Not applicable as the company is a logistics and trading entity; however, Net Capital Turnover Ratio improved 40% to 13.82x, indicating higher efficiency in utilizing working capital.

Logistics & Distribution

Transportation expenses were INR 87.72 Cr, representing 9.3% of total revenue, down 4.7% YoY from INR 92.09 Cr.

📈 Strategic Growth

Expected Growth Rate

33%

Growth Strategy

Growth will be achieved through a 32% expansion of the customer base, increasing the share of high-margin logistics services (now 72% of revenue), and improving EBITDA from the commercial vehicle segment which reached INR 23 Cr in Q4FY25.

Products & Services

Third-party logistics (3PL) services, clearing and forwarding, petrol, diesel, petroleum products, and commercial vehicles.

Brand Portfolio

Accuracy Shipping Limited.

Market Expansion

The company is expanding its customer base (grew 32% in FY25) and focusing on long-term contracts to improve 'stickiness' and revenue visibility.

🌍 External Factors

Industry Trends

The logistics industry is shifting toward integrated 3PL providers. Accuracy is positioning itself by increasing its logistics segment contribution from 63% to 72% of total revenue to capture this growth.

Competitive Landscape

Operates in a fragmented 3PL and commercial vehicle dealership market; competes on operational efficiency and diversified service offerings.

Competitive Moat

Moat is based on a diversified business model across logistics, fuel, and motors, which provides a hedge against volatility in any single segment. Sustainability is supported by a 32% growth in the customer base.

Macro Economic Sensitivity

Highly sensitive to global trade volumes and freight rates; a 28% increase in freight-related payables was noted due to rate hikes.

Consumer Behavior

Increasing demand for integrated logistics and commercial transport solutions as evidenced by the 33% revenue growth.

Geopolitical Risks

Management cited global geopolitical headwinds as a primary challenge in Q4FY25, impacting the stability of international shipping routes.

⚖️ Regulatory & Governance

Industry Regulations

Compliant with Ind AS-108 for segment reporting and Section 133 of the Companies Act, 2013. Auditor issued a clean opinion on internal financial controls.

Taxation Policy Impact

The company utilizes MAT credit and deferred tax assets. Current tax (net) for FY25 was INR 2.14 Cr.

Legal Contingencies

The auditor reported no noticed cases of fraud by or on the company during the year. Specific pending court case values were not disclosed.

⚠️ Risk Analysis

Key Uncertainties

Freight rate volatility (28% impact on payables) and global geopolitical instability are the primary uncertainties affecting the 72% logistics revenue stream.