ARSHIYA - Arshiya

📊 NSE: ARSHIYA 🏢 Miscellaneous 📅 Last Updated: 12/13/2025 18:30

💰 Financial Performance

Revenue Growth by Segment

Consolidated Gross Sales fell 13% YoY to INR 269.39 Cr in FY17, primarily due to a commodity production slowdown affecting rail operations. Standalone sales grew 17.37% YoY to INR 76.02 Cr.

Geographic Revenue Split

Operations are split between Western India (Panvel) and Northern India (Khurja). Panvel operations generated INR 109.35 Cr in income for FY17, contributing significantly to the group's core logistics revenue.

Profitability Margins

Consolidated EBIDTA margin was 15.84% in FY17, down from 18.13% YoY. Standalone EBIDTA margin improved significantly to 62.21% from 41.50% YoY due to cost realignment.

EBITDA Margin

Consolidated EBIDTA was INR 42.66 Cr (15.84% margin), a 24% YoY decline. Standalone EBIDTA rose 75.93% YoY to INR 47.29 Cr.

Capital Expenditure

The company is transiting to an asset-light model, signing a term sheet to monetize 6 warehouses (832,000 sq. ft.) for an upfront payment of INR 434 Cr ($94.3 million).

Credit Rating & Borrowing

The company is currently under Corporate Insolvency Resolution Process (CIRP). Restructured debt with EARC stands at INR 1,338 Cr, with an additional INR 1,262 Cr to be converted into equity/OCRPS.

⚙️ Operational Drivers

Raw Materials

Not disclosed in available documents (Logistics services focus on fuel, power, and labor rather than raw materials).

Capacity Expansion

Current rail capacity includes 18 rakes and ~3,000 containers. Planned expansion includes developing 4 million sq. ft. of surplus land within the existing notified FTWZ area.

Raw Material Costs

Cost of operations for Panvel was INR 16.83 Cr in FY17, representing 15.4% of Panvel income. Consolidated finance costs were INR 291.45 Cr, down 15% YoY.

Manufacturing Efficiency

Rail and ICD operations performed lower than envisaged in FY17 due to commodity slowdowns, leading to a 24% drop in consolidated EBIDTA.

Logistics & Distribution

Consolidated revenue reduced by INR 41 Cr in FY17 majorly due to commodity production slowdown affecting rail freight volumes.

📈 Strategic Growth

Expected Growth Rate

17.37%

Growth Strategy

Transitioning to an asset-light model by monetizing 832,000 sq. ft. of warehouse space for INR 434 Cr to reduce debt. The strategy includes partnering with global funds for growth capital and entering long-term lease contracts with marquee global clientele.

Products & Services

Free Trade Warehousing Zone (FTWZ) services, Rail Freight Infrastructure, Inland Container Depot (ICD) services, Transport & Handling, and Domestic Warehousing.

Brand Portfolio

Arshiya

New Products/Services

Value Optimization Services (VOS) and enhanced capacity at existing zones to participate in trade growth.

Market Expansion

Expansion of the North India FTWZ, ICD, and Rail Terminal near Delhi to tap into the Northern India logistics market.

Market Share & Ranking

Pioneer in FTWZ development in India; largest private container train operator with a Pan-Indian presence.

Strategic Alliances

Restructuring agreement with Edelweiss Asset Reconstruction Limited (EARC) to reduce debt by 50% and convert INR 1,262 Cr into equity.

🌍 External Factors

Industry Trends

GST implementation and the development of Dedicated Freight Corridors (DFC) are expected to drive growth in non-bulk traffic and domestic logistics.

Competitive Landscape

Competes with other private container train operators and warehouse developers, but maintains a lead in integrated FTWZ-Rail-ICD models.

Competitive Moat

Pioneer advantage as the only developer operating two FTWZs in India with integrated rail sidings (9.10km siding at Panvel). Moat is sustainable due to high entry barriers in infrastructure and regulatory FTWZ notifications.