💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue from operations grew 9.02% YoY to INR 166.31 Cr in FY25. The Ocean Freight and Shipping segment grew 9.86% YoY to INR 158.00 Cr, while other segments including Lease Rentals contributed approximately INR 8.31 Cr.

Geographic Revenue Split

The Malaysia-based subsidiary, Deccan Shipping & Logistics SDN. BHD., contributed INR 109.37 Cr, representing approximately 65.76% of total consolidated revenue.

Profitability Margins

Operating Profit Margin experienced a sharp compression, falling from 7.22% in FY24 to 1.67% in FY25. This 76.8% decline was driven by operating expenses in the Ocean Freight segment rising 34% YoY, far outpacing the 9.86% revenue growth in that segment.

EBITDA Margin

Core profitability was significantly impacted by a 34% increase in fuel and handling charges. Net worth increased by 230.39% to INR 76.97 Cr following the public issue, though EPS fell 55.17% from 6.87 to 3.08 due to equity dilution.

Capital Expenditure

The company allocated INR 27.75 Cr for the procurement of tank containers from IPO proceeds, with INR 26.49 Cr (95.46%) utilized as of September 30, 2025.

Credit Rating & Borrowing

Interest Coverage Ratio weakened from 3.66 to 1.86 in FY25. Long-term borrowings stood at INR 13.75 Cr, up from INR 11.85 Cr in FY24.

⚙️ Operational Drivers

Raw Materials

Fuel and handling charges are the primary operational cost drivers, with operating expenses for freight services increasing from INR 101.23 Cr to INR 135.74 Cr in FY25.

Import Sources

Not disclosed in available documents, though the company maintains a significant operational presence in Malaysia.

Capacity Expansion

The company is expanding its tank container fleet using INR 27.75 Cr of IPO funds to increase its leasing and logistics capacity.

Raw Material Costs

Operating costs for the core shipping business rose 34% YoY, significantly impacting margins as these costs represent approximately 81.6% of segment revenue.

Manufacturing Efficiency

Not applicable as a service/logistics provider; however, the Debtors Turnover Ratio slowed from 4.35 to 2.58, indicating reduced collection efficiency.

Logistics & Distribution

Operating expenses for ocean freight and shipping reached INR 135.74 Cr in FY25, representing 81.6% of total revenue.

📈 Strategic Growth

Expected Growth Rate

9.86%

Growth Strategy

Growth is being pursued through the procurement of new tank containers (INR 27.75 Cr investment) to expand the leasing fleet and strengthening core ocean freight operations, supported by a significant capital infusion of INR 51.83 Cr from the IPO.

Products & Services

Ocean freight services, shipping logistics, and tank container lease rentals, with a focus on hazardous cargo handling.

Brand Portfolio

Deccan Transcon Leasing Limited (formerly Deccan Transcon Leasing Private Limited).

New Products/Services

Expansion of the tank container leasing fleet is expected to drive future rental income, though specific contribution percentages are not disclosed.

Market Expansion

The company maintains a strong international presence through its Malaysian subsidiary, which already contributes over 65% of revenue.

Strategic Alliances

The company operates through a subsidiary in Malaysia and has associates, though specific partner names are not detailed in the snippets.

🌍 External Factors

Industry Trends

The industry is seeing increased demand for specialized tank containers for hazardous cargo, which the company is addressing through its INR 27.75 Cr capex plan.

Competitive Landscape

The company competes in the global ocean freight and container leasing market, facing pressure from rising global logistics input costs.

Competitive Moat

The company's moat is built on specialized expertise in hazardous cargo logistics and a growing fleet of owned tank containers, though high sensitivity to fuel costs challenges margin sustainability.

Macro Economic Sensitivity

Highly sensitive to global trade volumes and fuel price fluctuations, which directly impact the 81.6% cost-to-revenue ratio in the shipping segment.

Consumer Behavior

Shift toward outsourced specialized logistics for hazardous materials is driving demand for the company's core services.

Geopolitical Risks

Exposed to international trade barriers and maritime regulations affecting the Malaysia-India shipping corridors.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to SEBI (LODR) Regulations 2015 and the Companies Act 2013; hazardous cargo operations must comply with international maritime safety standards.

Environmental Compliance

Not disclosed in available documents, though safety protocols for hazardous cargo are emphasized.

Taxation Policy Impact

Deferred tax liabilities stood at INR 1.33 Cr as of March 31, 2025.

Legal Contingencies

No specific pending court cases or case values were disclosed in the provided audit reports or announcements.

⚠️ Risk Analysis

Key Uncertainties

Fuel price volatility and handling charge increases pose a high risk, having already caused a 76.8% compression in operating margins in the latest fiscal year.

Geographic Concentration Risk

High geographic concentration in Malaysia, which accounts for 65.76% of consolidated revenue.

Third Party Dependencies

Dependent on port authorities and fuel suppliers, as evidenced by the 34% spike in handling and fuel costs.

Technology Obsolescence Risk

The company is investing in modern tank containers to mitigate the risk of fleet obsolescence.

Credit & Counterparty Risk

Receivables quality is a concern as the Debtors Turnover Ratio declined from 4.35 to 2.58 YoY.