BLUEWATER - Blue Water

📊 NSE: BLUEWATER 🏢 Logistics Solution Provider 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Ocean Freight grew 54% from INR 105.75 Cr in FY24 to INR 162.89 Cr in FY25, contributing 80.58% of H1 FY26 revenue. Surface & Railway Freight contributed 7.45% (INR 10.30 Cr), Custom House Clearance 10.24% (INR 14.15 Cr), and Air Freight 1.74% (INR 2.41 Cr) in H1 FY26.

Geographic Revenue Split

The company derives 41% of revenue from Telangana, 28% from Gujarat, 14% from Maharashtra, 5% from Tamil Nadu, and 4% from Rajasthan. The remaining 8% is spread across Karnataka, Andhra Pradesh, West Bengal, Delhi, and Uttar Pradesh.

Profitability Margins

Net Profit Margin (PAT) improved significantly from 1.6% in FY23 to 4.3% in FY24, reaching 5.4% in FY25 and 6.2% in H1 FY26. This trend is driven by better operating leverage and a shift toward higher-value multimodal services.

EBITDA Margin

EBITDA Margin stood at 11.3% in H1 FY26, representing a 350 bps increase from 7.8% in H1 FY25. Absolute EBITDA for H1 FY26 was INR 15.60 Cr compared to INR 6.36 Cr in H1 FY25, a 145.2% YoY growth.

Capital Expenditure

The company raised INR 36.50 Cr (net) through an IPO in June 2025. INR 16.50 Cr is earmarked for the purchase of commercial vehicles and general corporate purposes to expand the owned fleet of 71+ trailers and 814+ ISO tanks.

Credit Rating & Borrowing

Assigned IVR BBB/Stable rating by Infomerics in September 2025 for INR 25.00 Cr long-term facilities. Average working capital limit utilization was 72.18% for the 12 months ended August 2025.

⚙️ Operational Drivers

Raw Materials

Not applicable as a service provider; primary costs are Operational Expenses (freight, handling, and port charges) which represent 82.9% of total revenue (INR 114.62 Cr in H1 FY26).

Import Sources

Not applicable; service operations are headquartered in Hyderabad with 10 branch offices across India (Chennai, Mumbai, Bengaluru, etc.) and an international office in Dubai.

Key Suppliers

Key partners include Turkish Airlines (exclusive air cargo partner) and various shipping lines for NVOCC and ocean freight operations.

Capacity Expansion

Current fleet includes 814+ ISO Tank Containers and 71+ Container Trailers. Planned expansion involves utilizing IPO proceeds to increase the trailer fleet to enhance domestic pick-up and delivery capabilities.

Raw Material Costs

Operational expenses grew 61.5% YoY from INR 70.99 Cr in H1 FY25 to INR 114.62 Cr in H1 FY26, tracking the 70.1% growth in revenue from operations.

Manufacturing Efficiency

Not applicable; operational efficiency is measured by the EBITDA margin improvement from 3.9% to 11.3% over three years due to increased scale and fleet ownership.

Logistics & Distribution

Employee expenses (INR 4.05 Cr) and Other expenses (INR 4.00 Cr) accounted for approximately 5.8% of H1 FY26 revenue.

📈 Strategic Growth

Expected Growth Rate

32.3%

Growth Strategy

Growth is targeted through expanding the ISO tank fleet for liquid cargo, increasing the 40-feet trailer fleet for domestic logistics, and leveraging the new Dubai office to access Middle East and African markets. The company also entered an exclusive air cargo partnership with Turkish Airlines in 2025.

Products & Services

Ocean freight, air freight, surface and railway transport, custom house clearance, NVOCC tank container logistics, warehousing, and fumigation services.

Brand Portfolio

Blue Water Logistics (BWL).

New Products/Services

Expanded into ISO tank logistics and exclusive air cargo partnerships; air freight revenue grew to INR 2.41 Cr in H1 FY26.

Market Expansion

Expansion into the Middle East and Africa via the Dubai branch; domestic expansion through 10 branch offices in key industrial states like Gujarat and Maharashtra.

Market Share & Ranking

Not disclosed; however, the company is a licensed Multimodal Transport Operator and handles significant volumes in the SME-focused logistics sector.

Strategic Alliances

Exclusive air cargo partnership with Turkish Airlines; member of FFFAI, IATA, and Tank Container Development Alliance.

🌍 External Factors

Industry Trends

The global logistics market is expected to grow at a 6.3% CAGR to $15.79 trillion by 2028. Trends include increased technology adoption, digitalization, and a shift toward integrated NVOCC solutions which handle 90% of global container traffic.

Competitive Landscape

Competes with other freight forwarders and NVOCCs; differentiates through integrated end-to-end solutions and specialized services like fumigation and magnetic cargo handling.

Competitive Moat

Moat is built on a diverse client base (800+), specialized ISO tank capabilities, and a multimodal transport license. Sustainability is supported by the transition from a partnership to a listed public entity with a strengthened capital structure (Debt/Equity improved from 5.31 in FY23 to 1.82 in FY25).

Macro Economic Sensitivity

Highly sensitive to global trade volumes and EXIM policies; 90% of global freight traffic is ocean-based, matching the company's core segment focus.

Consumer Behavior

Shift toward outsourcing entire supply chains to integrated providers, benefiting BWL's end-to-end service model.

Geopolitical Risks

Political tensions or conflicts could delay cross-border transportation and affect insurance coverage for international shipments.

⚖️ Regulatory & Governance

Industry Regulations

Governed by the Multimodal Transportation of Goods Act, 1993; requires licenses for Custom House Agency and IATA accreditation for air freight.

Environmental Compliance

Subject to evolving greenhouse gas emission regulations and international climate agreements (Paris Agreement), which may require future capital expenditure for fleet modernization.

Taxation Policy Impact

Effective tax rate is approximately 25.4% based on H1 FY26 figures (INR 2.93 Cr tax on INR 11.56 Cr PBT).

Legal Contingencies

No specific pending court case values disclosed; however, the company faces potential liabilities if goods transported are found in violation of environmental or safety regulations.

⚠️ Risk Analysis

Key Uncertainties

Risks associated with the transportation of illegal or hazardous goods by clients, which could lead to claims or criminal liabilities despite verification processes.

Geographic Concentration Risk

High concentration in Western and Southern India, with 83% of revenue coming from Telangana, Gujarat, and Maharashtra.

Third Party Dependencies

Dependent on shipping lines and airlines for cargo space; however, the company acts as an NVOCC to mitigate some direct carrier dependency.

Technology Obsolescence Risk

Risk of falling behind in digitalization; the company is currently focusing on technology adoption to remain competitive in the evolving global logistics industry.