SJLOGISTIC - S J Logistics (I

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

💰 Financial Performance

Revenue Growth by Segment

Ocean Cargo revenue grew 12.8% to INR 243.5 Cr in H1 FY26 compared to INR 215.9 Cr in H1 FY25. The NVOCC division scaled from INR 2.1 Cr to INR 31.9 Cr, representing growth of over 1400% YoY.

Geographic Revenue Split

Not disclosed in available documents, though the company highlights a strategic focus on India-Brazil consignments for documentation services.

Profitability Margins

Gross margins are driven by 'Purchase of Services' which stood at INR 147.52 Cr (79.5% of standalone revenue) in H1 FY26. Net Profit After Tax (PAT) margin improved by 100 basis points to 11.4% in H1 FY26 from 10.4% in H1 FY25.

EBITDA Margin

EBITDA margin stood at 18.1% in Q2 FY26, representing a 391 basis point expansion YoY. Core profitability is driven by operational leverage as EBITDA grew 61.4% YoY to INR 28.4 Cr.

Capital Expenditure

Consolidated cash flow from investing activities showed an outflow of INR 21.25 Cr in H1 FY26, compared to INR 4.05 Cr in FY25, indicating increased investment in assets or technology.

Credit Rating & Borrowing

CRISIL noted a below-average financial risk profile with gearing at 4.36 times (historical). Finance costs rose 429% to INR 6.56 Cr in H1 FY26 from INR 1.24 Cr in H1 FY25 due to high working capital debt.

⚙️ Operational Drivers

Raw Materials

Purchase of Services (freight and shipping costs) represents 79.5% of standalone revenue (INR 147.52 Cr in H1 FY26).

Import Sources

Global shipping routes, with specific operational focus on India and Brazil for documentation and NVOCC services.

Capacity Expansion

Processed 5,000+ bills of lading in FY25. The company is expanding its NVOCC division and investing in technology-driven efficiency to support margin improvement.

Raw Material Costs

Purchase of services costs were INR 147.52 Cr in H1 FY26. Procurement strategies involve relationship-based business with shipping lines rather than long-term contracts.

Manufacturing Efficiency

Return on Capital Employed (ROCE) was 26.0% in FY25, up from 19.0% in FY23, reflecting improved capital efficiency.

Logistics & Distribution

Not disclosed as a separate percentage of revenue.

📈 Strategic Growth

Expected Growth Rate

25.80%

Growth Strategy

Growth will be achieved through the scaling of the NVOCC division (which grew from INR 2.1 Cr to INR 31.9 Cr in H1 FY26), strategic geographic expansion into markets like Brazil, and investing in technology-driven efficiency to differentiate services.

Products & Services

Ocean Cargo forwarding, NVOCC services, Project Cargo handling, and documentation services including House Bill of Lading.

Brand Portfolio

S J Logistics (India) Limited.

New Products/Services

Scaling of NVOCC division and secure documentation services for India-Brazil consignments.

Market Expansion

Expansion of global reach through strategic alliances and a growing presence in international shipping routes.

Strategic Alliances

SJA Group includes SJIL, Opus Dei Logistics (India) Pvt Ltd, Micro Logistics (India) Pvt Ltd, and Gulf Orient Shipping LLP.

🌍 External Factors

Industry Trends

The industry is growing at approximately 25-26% YoY for the company, with a shift toward technology-driven efficiency and integrated supply chain solutions.

Competitive Landscape

Intense competition from numerous small and large players; business is conducted more on relationships than fixed contracts.

Competitive Moat

Moat is built on 33+ years of promoter experience and an established legacy since 2000. This relationship-based advantage is sustainable but faces pressure from low entry barriers.

Macro Economic Sensitivity

Highly sensitive to economic growth in India and abroad, as well as global trade volumes and government fiscal policies.

Geopolitical Risks

International operations are subject to global trade barriers and geopolitical stability in shipping corridors.

⚖️ Regulatory & Governance

Industry Regulations

Operations are affected by pollution norms, import/export restrictions, and government fiscal costs.

Taxation Policy Impact

Effective tax rate was approximately 22.2% in H1 FY26 (INR 9.24 Cr tax on INR 41.62 Cr PBT).

⚠️ Risk Analysis

Key Uncertainties

Working capital intensity and the ability to manage debt servicing are key risks, with CRISIL noting historical overdrawals in facilities for more than 30 days.