💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for H1 FY26 reached INR 289.67 Cr. Segment performance compared to the FY25 run-rate shows Transportation, Logistics, Mining & Construction grew 1.6% to INR 197.18 Cr; Trading of Oil, Lubricants and Spares grew 13.1% to INR 17.34 Cr; Finance Operations grew 332% to INR 1.75 Cr; while Oil Drilling Operations declined 53% to INR 10.52 Cr.

Geographic Revenue Split

The company operates primarily in India with registered offices in New Delhi and operations in Gurugram. It also has exposure to Overseas Coal Mining and Trading, contributing to the diversified revenue base, though specific regional percentage splits are not disclosed in available documents.

Profitability Margins

Consolidated Net Profit Before Tax (PBT) margin improved to 10.8% in H1 FY26 (INR 35.06 Cr PBT on INR 323.83 Cr total income) compared to 7.2% in FY25. Standalone PBT margin for H1 FY26 stood at 6.7% (INR 15.90 Cr PBT on INR 236.97 Cr total income).

EBITDA Margin

The estimated Consolidated EBITDA margin for H1 FY26 is 20.6%, calculated from a PBT of INR 35.06 Cr, depreciation of INR 6.51 Cr, and standalone finance costs of INR 18.05 Cr. This reflects core operational strength despite a reduction in total income due to subsidiary disposals.

Capital Expenditure

Consolidated Property, Plant and Equipment (PPE) stood at INR 53.51 Cr as of September 30, 2025, a slight decrease from INR 55.72 Cr in March 2025, suggesting that depreciation of INR 6.51 Cr exceeded new capital additions during the period.

Credit Rating & Borrowing

Standalone finance costs were INR 18.05 Cr for H1 FY26, representing 7.6% of total standalone income. Specific credit ratings and interest rate percentages are not disclosed in available documents.

⚙️ Operational Drivers

Raw Materials

Specific raw materials include crude oil derivatives for the lubricants segment, spare parts for the transport fleet, and consumables for drilling and mining operations. Cost of material and services consumed represents 63.6% of consolidated revenue from operations.

Capacity Expansion

The company maintains a significant asset base with Consolidated PPE of INR 53.51 Cr and Right to Use assets of INR 6.44 Cr. Specific capacity metrics in MT or units are not disclosed.

Raw Material Costs

Consolidated cost of materials and services consumed was INR 184.43 Cr in H1 FY26, down from INR 968.70 Cr in FY25, primarily due to the disposal of subsidiaries which reduced the overall scale of operations.

Manufacturing Efficiency

Manufacturing efficiency is driven by the utilization of its transport fleet and drilling rigs. Standalone depreciation of INR 5.05 Cr against a PPE base of INR 36.10 Cr indicates an annualized depreciation rate of approximately 28%.

Logistics & Distribution

Distribution and logistics are core revenue generators rather than just costs, with the Transportation and Logistics segment contributing 68% of total consolidated operational revenue.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

The company is focusing on its core Transportation, Logistics, and Mining segment, which remains stable. It is also aggressively scaling its Finance Operations, which saw a 332% run-rate increase, and leveraging its overseas coal mining presence to offset domestic volatility.

Products & Services

Logistics and transportation services, mining and construction services, oil drilling services, lubricants, spare parts, coal, and financial/investment services.

Brand Portfolio

Sindhu Trade Links Limited.

New Products/Services

The company is expanding its Finance and Investment segment, which contributed INR 1.75 Cr in H1 FY26 compared to only INR 0.81 Cr for the full year FY25.

Market Expansion

Expansion is targeted through overseas coal mining and trading activities to diversify beyond the Indian logistics market.

🌍 External Factors

Industry Trends

The logistics industry is shifting toward integrated service providers. Sindhu Trade Links is positioning itself as a multi-modal player combining transport, mining, and energy services.

Competitive Landscape

Competes with organized and unorganized players in the Indian logistics and lubricants market, as well as specialized global firms in oil drilling.

Competitive Moat

The company's moat is built on its integrated service model and asset-heavy logistics fleet, which creates high entry barriers for competitors in the mining and drilling sectors.

Macro Economic Sensitivity

Highly sensitive to industrial production and mining output, which drive the demand for its core transportation and logistics services (68% of revenue).

Consumer Behavior

Industrial clients are increasingly seeking end-to-end logistics and mining partners to reduce supply chain complexity.

Geopolitical Risks

Overseas coal operations are subject to international trade regulations and geopolitical stability in mining regions.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Mines Act, oil industry safety regulations, and transportation permits. The company must also comply with Indian Accounting Standards (IND-AS) for financial reporting.

Environmental Compliance

Operations in mining and oil drilling are subject to stringent environmental norms and pollution control standards, though specific compliance costs are not disclosed.

Taxation Policy Impact

The effective tax rate for H1 FY26 is estimated at 42.8%, based on a Consolidated PBT of INR 35.06 Cr and an implied PAT of INR 20.04 Cr (derived from EPS of 0.13).

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the volatility of the Oil Drilling segment, which saw a 53% revenue run-rate decline, and the sustainability of high 'Other Income' which historically bolstered profits.

Geographic Concentration Risk

Heavy concentration in the Indian market, particularly in the logistics and transportation sectors, makes the company vulnerable to domestic economic cycles.

Third Party Dependencies

Dependency on government and large industrial contracts for mining and drilling projects.

Technology Obsolescence Risk

Risk of obsolescence in the drilling fleet if not upgraded to meet newer, more efficient environmental and operational standards.

Credit & Counterparty Risk

The Finance Operations segment (INR 1.75 Cr revenue) introduces counterparty credit risk, particularly if lending to smaller entities in the transport ecosystem.