PATINTLOG - Patel Integrated

📊 NSE: PATINTLOG 🏢 Miscellaneous 📅 Last Updated: 12/14/2025 10:55

💰 Financial Performance

Revenue Growth by Segment

Operational income for Q2 FY26 reached INR 94 Cr, a 12% YoY increase. For H1 FY26, total operational income was INR 172 Cr, up 4% YoY. Domestic cargo volume grew 13% QoQ to 13,195 tons, while international cargo volume surged 31% QoQ to 2,198 tons.

Geographic Revenue Split

Not specifically disclosed by region, but the business is split between Domestic cargo (24,831 tons in H1 FY26) and International cargo (3,880 tons in H1 FY26).

Profitability Margins

PAT for Q2 FY26 was INR 2 Cr, a 15% YoY increase, with PAT margins improving to 2.44%. H1 FY26 PAT was INR 4 Cr, up 8% YoY, with a margin of 2.27%. The company focuses on maintaining profitability in a low-margin environment through volume-driven economies of scale.

EBITDA Margin

EBITDA for Q2 FY26 stood at INR 3 Cr, growing 14% YoY with a margin of 2.66%. H1 FY26 EBITDA was INR 5 Cr, up 2.3% YoY, with a margin of 2.61%.

Capital Expenditure

The company maintains an asset-light model. As of H1 FY26, Property, Plant, and Equipment (PPE) stood at INR 33 Cr, with Capital Work in Progress (CWIP) at a minimal INR 5 lakhs. Investment property is valued at INR 13 Cr.

Credit Rating & Borrowing

The company is now net debt-free as of November 2025. Interest paid in the recent period was only INR 21 lakhs, reflecting a significant reduction in borrowing costs.

⚙️ Operational Drivers

Raw Materials

As a logistics provider, primary inputs are fuel and freight capacity (air and road), though specific commodity names like 'Aviation Turbine Fuel' are not explicitly listed as raw materials.

Key Suppliers

Not disclosed in available documents, but the company partners with airlines and third-party fleet owners for its asset-light air and road cargo operations.

Capacity Expansion

The company handled a total cargo volume of 15,393 tons in Q2 FY26. Expansion is focused on increasing volume throughput rather than physical asset ownership to maintain an asset-light structure.

Raw Material Costs

Not disclosed as a specific percentage of revenue, but the company notes that overhead costs remain constant as volumes increase, allowing for margin expansion through economies of scale.

Manufacturing Efficiency

The company tracks blended realization per kg, which was INR 59.24 for Q2 FY26 and INR 58.22 for H1 FY26, reflecting disciplined pricing strategies.

Logistics & Distribution

The company operates an asset-light road and air cargo network, specifically stating they will not own trucks to maximize Return on Investment (ROI).

📈 Strategic Growth

Expected Growth Rate

12%

Growth Strategy

The company is pursuing an asset-light, ROI-driven strategy focusing on air cargo and road transport. By not owning trucks or heavy assets, they aim to improve Return on Investment. Growth is expected through volume increases which leverage fixed overheads to expand EBITDA margins.

Products & Services

Air cargo handling (Domestic and International) and road logistics services.

Brand Portfolio

Patel Integrated Logistics.

New Products/Services

Continued focus on expanding the air cargo and road business segments with an emphasis on high-ROI customers.

Market Expansion

Targeting significant customers where ROI is higher, while avoiding capital-intensive asset creation.

🌍 External Factors

Industry Trends

The industry is shifting toward asset-light models. The company is positioning itself as a net debt-free, ROI-driven player, focusing on the growing air cargo segment which saw a 31% QoQ increase in international volumes.

Competitive Landscape

Operates in a competitive, low-margin logistics environment where scale and volume are the primary differentiators.

Competitive Moat

The moat is built on a net debt-free balance sheet and an established cargo network. Sustainability is driven by the transition to an asset-light model which protects the company from the high fixed costs of fleet ownership.

Macro Economic Sensitivity

Highly sensitive to national economic developments, changes in governmental policies, and fiscal laws.

Consumer Behavior

Increased demand for steady cargo movement across domestic and international networks.

Geopolitical Risks

The company notes that factors outside management control, such as political and social conditions, can cause actual results to differ from projections.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with Ind AS 115 for revenue recognition and Sections 177 and 188 of the Companies Act, 2013 regarding related party transactions.

Taxation Policy Impact

Deferred Tax Liability (Net) was INR 1.92 Cr as of March 31, 2025.

Legal Contingencies

The company faces disputed claims under various non-tax matters totaling INR 5.54 Cr (INR 553.82 lakhs) pending at various courts/forums, currently considered as contingent liabilities.

⚠️ Risk Analysis

Key Uncertainties

Potential for material misstatements due to fraud or error in revenue recognition, and the risk of internal financial controls becoming inadequate due to changing conditions.