GLOTTIS - Glottis

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

💰 Financial Performance

Revenue Growth by Segment

Ocean Freight Import remains the dominant segment at 81% of Q2 FY26 revenue. Air Import revenue grew 17.3% YoY, while Air Export revenue more than doubled (100%+) YoY, reflecting a strategic shift toward multi-modal diversification. Road transport contributed 4% to the total revenue mix.

Geographic Revenue Split

Asia is the primary revenue driver, accounting for 86% of revenue in Q2 FY26 and 84% in H1 FY26. Other regions include North America (8%), Europe (3%), Africa (2%), and South America (1%).

Profitability Margins

PAT margin for Q2 FY26 was 5.8% (INR 124 million) and 6.3% (INR 243 million) for H1 FY26. Profitability is sensitive to global freight rate fluctuations and container movement volumes, which saw a YoY decline in the current period.

EBITDA Margin

EBITDA margin stood at 8.4% in Q2 FY26 (INR 181 million), down from 10.1% in Q1 FY26. This sequential compression is attributed to market-wide pressure on freight rates and softer global demand compared to the previous year.

Capital Expenditure

The company has planned a significant capital expenditure of INR 130 Cr to purchase trailers and containers using IPO proceeds. This transition from an asset-light to an asset-right model is expected to begin in Q3 FY26.

Credit Rating & Borrowing

The long-term rating was upgraded to 'Crisil BBB+/Stable'. The company maintains a robust financial profile with an interest coverage ratio of 28 times and a low gearing of 0.23 as of March 31, 2025.

⚙️ Operational Drivers

Raw Materials

The primary 'raw materials' are service-based: Ocean freight space (FCL/LCL), Air freight capacity, and fuel for land transport. Freight costs are the largest component of the cost structure.

Import Sources

Logistics services are primarily sourced across Asian trade corridors, specifically Vietnam and Malaysia, where the company operates liner agencies.

Key Suppliers

Key suppliers include global shipping lines and airlines. The company also utilizes services from its group entity, Glottis Shipping Private Limited, for agency business in Vietnam and Malaysia.

Capacity Expansion

Handled 21,972 TEUs in Q2 FY26 and 47,032 TEUs in H1 FY26. Planned expansion involves adding INR 130 Cr worth of physical assets (trailers/containers) to increase operational control and margins.

Raw Material Costs

Operating margins are highly sensitive to freight rate volatility. A decline in operating margins to less than 6% is identified as a key downward risk factor for the company's credit profile.

Manufacturing Efficiency

The company is transitioning from an asset-light model to owning assets. This shift is expected to provide better service reliability and margin accretion of 15-20% on trailer operations.

Logistics & Distribution

Road transport accounts for 4% of revenue. The company aims to reduce these costs by utilizing the Bharatmala infrastructure program.

📈 Strategic Growth

Expected Growth Rate

50%

Growth Strategy

Growth will be achieved through backward integration (investing INR 130 Cr in assets), which is expected to add 15-20% to the top-line margin. The company is also targeting high-growth sectors like Renewable Energy, which already contributes 46% of revenue.

Products & Services

Multi-modal logistics services including Ocean Freight (Import/Export), Air Freight (Import/Export), and Land Transport (Trailers/Trucking).

Brand Portfolio

Glottis

New Products/Services

Expansion into Air Freight (grew 2x YoY) and deepening penetration in the Renewable Energy vertical to diversify away from traditional ocean freight.

Market Expansion

Focusing on widening the customer base within Asian trade corridors and leveraging the 'Make in India' program to increase export segment contribution (currently 12% for ocean freight).

Market Share & Ranking

Not disclosed, but the company achieved INR 940.8 Cr revenue in FY25, nearly doubling from INR 497.18 Cr in FY24.

Strategic Alliances

Maintains a strategic relationship with Glottis Shipping Private Limited for liner agency services in Vietnam and Malaysia on an arm's length basis.

🌍 External Factors

Industry Trends

The logistics industry is shifting toward integrated multi-modal solutions. Glottis is positioning itself by scaling air freight (2x growth) and focusing on the renewable energy sector.

Competitive Landscape

Intense competition from large end-to-end logistics providers and small niche players. Entry barriers are low, putting constant pressure on margins.

Competitive Moat

The moat is built on the promoters' 20-year experience and deep-rooted relationships with shipping lines and clients, which are difficult for new entrants to replicate quickly.

Macro Economic Sensitivity

Highly sensitive to global trade cycles and freight rates. Q2 FY26 revenue was lower YoY due to reduced global container movement and softer freight rates.

Consumer Behavior

Customers are increasingly seeking multi-modal partners; Glottis is responding by expanding its air freight and land transport capabilities.

Geopolitical Risks

Trade barriers or changes in 'Make in India' policies could impact import/export volumes. Asia accounts for 86% of revenue, making the company vulnerable to regional geopolitical shifts.

⚖️ Regulatory & Governance

Industry Regulations

Complies with SEBI (Listing Obligations and Disclosure Requirements) and SEBI (Depositories and Participants) Regulations 2018.

Environmental Compliance

Spent INR 5.5 million on CSR in FY25. The company maintains an ESG focus with regular HSE (Health, Safety, and Environment) training for all employees.

Legal Contingencies

No major pending court cases or legal disputes with specific INR values were disclosed in the provided documents.

⚠️ Risk Analysis

Key Uncertainties

Volatility in global freight rates and economic cycles are the primary uncertainties, with a potential 20% revenue decline identified as a critical risk factor.

Geographic Concentration Risk

High concentration in Asia (86% of revenue), making the business highly dependent on the economic health of this specific region.

Third Party Dependencies

Currently dependent on third-party trailer and container providers, which is being addressed through a planned INR 130 Cr asset purchase.

Technology Obsolescence Risk

Risk of digital disruption in freight forwarding; the company is focusing on strengthening customer relationships and operational discipline to mitigate this.