JALAN - Jalan Transol.

📊 NSE: JALAN 🏢 Miscellaneous 📅 Last Updated: 12/14/2025 8:34

💰 Financial Performance

Revenue Growth by Segment

The company operates in the logistics segment, primarily serving two-wheeler manufacturers. Total revenue from operations plummeted by 85.31% YoY, falling from INR 5.37 Cr in FY24 to INR 78.82 lakh in FY25. This drastic decline indicates a severe contraction in business activity, likely exacerbated by the ongoing Corporate Insolvency Resolution Process (CIRP).

Geographic Revenue Split

The company maintains a pan-India presence with 25 branches located in major cities. While specific regional revenue percentages are not disclosed, the infrastructure supports nationwide logistics operations with a fleet of over 400 carriers.

Profitability Margins

Profitability is severely distressed. The company reported a negative net worth of INR 41.91 Cr as of March 31, 2025. For H1FY25, the company reported a PAT of INR 1.08 Cr, a recovery from the INR 15.62 Cr loss in FY24, though this may be due to accounting adjustments like write-backs rather than operational efficiency.

EBITDA Margin

The PBILDT margin in FY24 was approximately 9.12% (INR 0.49 Cr on INR 5.37 Cr revenue). However, for H1FY25, PBILDT turned negative at INR -0.23 Cr, reflecting a total loss of core operational profitability as revenue failed to cover fixed costs.

Capital Expenditure

Not disclosed in available documents. Given the negative net worth of INR 41.91 Cr and CIRP status, significant new CAPEX is unlikely.

Credit Rating & Borrowing

CARE Ratings has categorized the company under 'Issuer Not Cooperating' due to a lack of information. Previous ratings were reviewed based on best available information, and the company faces significant liquidity risks with current liabilities of INR 37.23 Cr dwarfing current assets of INR 49.50 lakh.

⚙️ Operational Drivers

Raw Materials

The company identifies 'Cost of Raw Materials/Revenue' as a primary expense, likely referring to fuel, tires, and vehicle consumables, which totaled INR 92.92 lakh in FY25, representing 117.9% of total revenue.

Capacity Expansion

The current fleet consists of over 400 single and multi-axle carriers. No expansion plans are currently mentioned due to the company's insolvency status (CIRP).

Raw Material Costs

Raw material/revenue costs were INR 92.92 lakh in FY25, down 79.36% from INR 4.50 Cr in FY24. Despite the absolute decrease, these costs now exceed total revenue, indicating that the company is losing money on every trip executed.

Manufacturing Efficiency

The company has only 3 permanent employees as of March 31, 2024, down from previous levels, suggesting a skeleton operation focused on maintaining the fleet of 400+ carriers.

Logistics & Distribution

Distribution is the core business. Other expenses, including logistics-related overheads, were INR 19.54 lakh in FY25, a 25% decrease from INR 26.06 lakh in FY24.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

The company intends to pivot toward cross-border e-commerce logistics, leveraging digital infrastructure to handle customs and duty laws. It also aims to benefit from government infrastructure investments which are expected to boost the logistics sector.

Products & Services

Logistics and transportation services using a fleet of 400+ single/multi-axle carriers, specifically tailored for two-wheeler manufacturers.

Brand Portfolio

Jalan Transolutions (India) Limited (formerly Jalan Carriers Private Limited).

New Products/Services

End-to-end solutions for cross-border e-commerce are planned, though no specific revenue contribution percentage is provided.

Market Expansion

The company is targeting the cross-border digital market, aiming to provide support for businesses facing language and payment barriers in international trade.

🌍 External Factors

Industry Trends

The industry is shifting toward digital cross-border markets and massive government-led infrastructure investment. Logistics firms are evolving into end-to-end solution providers rather than just transporters.

Competitive Landscape

The company faces intense competition from both local unorganized players and multinational logistics corporations.

Competitive Moat

The company's moat is its owned fleet of 400+ specialized carriers and a 25-branch network. However, this moat is currently unsustainable due to the negative net worth of INR 41.91 Cr and insolvency proceedings.

Macro Economic Sensitivity

Highly sensitive to interest rates and government infrastructure policy. Changes in taxation or economic developments in India directly affect the debt/equity ratio and liquidity.

Consumer Behavior

Rising per capita income and disposable income in India are driving demand for two-wheelers, which in turn drives demand for the company's specialized carrier services.

Geopolitical Risks

Cross-border delivery operations are subject to customs laws, duty regulations, and international payment barriers.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by government regulations on transport permissions and infrastructure laws. The company must comply with Ind AS 133 for financial reporting.

Legal Contingencies

The company is currently 'IN CIRP' (Corporate Insolvency Resolution Process), which is the most significant legal matter. Additionally, the auditor highlighted a lack of confirmation for INR 94.74 lakh in write-offs/backs.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the 'Going Concern' status. With current liabilities (INR 37.23 Cr) exceeding current assets (INR 0.495 Cr) by nearly 75 times, there is significant doubt about the company's ability to continue operations.