💰 Financial Performance

Revenue Growth by Segment

Total income surged 20.27% YoY to ₹508.24 crore in FY25 from ₹422.59 crore. Revenue from hired fleets contributed approximately 19.05% of total revenue, while the remaining ~80.95% is driven by the owned asset-heavy model. Growth is primarily fueled by a 17% expansion in fleet strength to 1,199 vehicles.

Geographic Revenue Split

The company operates on a pan-India basis through 27 branch offices strategically located in industrial and logistics corridors. While specific regional percentage splits are not disclosed, the network covers key hubs for FMCG, pharmaceuticals, and e-commerce sectors.

Profitability Margins

Net profit margins improved to 3.8% in FY25 from 3.1% in FY24. Net profit rose 44.7% to ₹19.14 crore from ₹13.22 crore. This improvement is attributed to higher fleet utilization and a shift toward higher-margin own-fleet operations.

EBITDA Margin

EBITDA margin reached 20.4% in FY25, up from 16.34% in FY24. EBITDA grew 50.2% YoY to ₹103.69 crore, driven by economies of scale, technological efficiencies, and disciplined cost management.

Capital Expenditure

The company invested heavily in fleet expansion, adding 176 vehicles in FY25 to reach 1,199 units. In H1 FY26, an additional 115 vehicles (83 in Q1, 32 in Q2) were added, bringing the total fleet to 1,231. These investments were funded via IPO proceeds and internal accruals.

Credit Rating & Borrowing

Assigned CARE BBB-; Stable for long-term facilities (₹124.30 crore) and CARE A3 for short-term facilities (₹15.70 crore). Interest coverage ratio stood at 5.9x in FY25, slightly down from 6.3x in FY24 due to increased debt for expansion.

⚙️ Operational Drivers

Raw Materials

Fuel (Diesel) is the primary operational cost, though specific percentage of total cost is not disclosed. Other major costs include driver wages, toll charges, and vehicle maintenance.

Import Sources

Not disclosed in available documents; fuel is sourced domestically through oil marketing companies.

Key Suppliers

Not disclosed in available documents, though the company utilizes multiple bankers for debt financing and maintains relationships with vehicle manufacturers for fleet expansion.

Capacity Expansion

Current fleet stands at 1,231 vehicles as of H1 FY26 (923 container trucks and 276 trailers as of FY25 end). The company is expanding into car carriers and electric vehicles (EVs) to diversify capacity.

Raw Material Costs

Fuel costs are a significant variable; the company uses fuel price escalation clauses in contracts to mitigate volatility, though it cannot always pass on 100% of increases to customers.

Manufacturing Efficiency

Fleet capacity utilization is maintained at approximately 82%, which supports the 20.4% EBITDA margin by ensuring assets are not sitting idle.

Logistics & Distribution

Distribution is handled via 27 branches. The company is shifting toward a hybrid model to balance the reliability of owned assets with the cost-efficiency of hired vehicles.

📈 Strategic Growth

Expected Growth Rate

20%

Growth Strategy

Growth will be achieved by increasing the share of hired fleet revenue for flexibility, entering the mining industry through joint ventures, and expanding the car carrier division. The company also signed a 5-year agreement to deploy EVs for Amazon to capture green logistics demand.

Products & Services

Full Truck Load (FTL) transportation, containerized truck services, trailer transport, car carriers, and specialized logistics for minerals, fly ash, and coal.

Brand Portfolio

Tejas Cargo India Limited.

New Products/Services

Electric Vehicle (EV) fleet services for e-commerce (Amazon contract) and specialized car carrier services for the automobile sector.

Market Expansion

Targeting deeper penetration in minerals transportation and mining sectors in FY26, alongside expanding the 27-branch network into underpenetrated industrial corridors.

Market Share & Ranking

Not disclosed in available documents; however, the company is listed on the NSE SME platform as of February 2025.

Strategic Alliances

Planned joint ventures for entry into the mining industry; existing 5-year agreement with Amazon for EV deployment.

🌍 External Factors

Industry Trends

The industry is shifting toward formalization, multimodal logistics (Gati Shakti), and green logistics. Tejas Cargo is positioning itself by adopting EVs and increasing its trailer fleet for bulk minerals.

Competitive Landscape

Highly fragmented and competitive industry with pressure from unorganized players and large organized competitors like Bluedart and Safexpress.

Competitive Moat

Moat is built on an asset-heavy model (1,231 vehicles) providing high service reliability, combined with a pan-India 27-branch network and deep technology integration (IoT/Telematics) which unorganized players lack.

Macro Economic Sensitivity

Highly sensitive to India's GDP growth and manufacturing output, as logistics demand is directly linked to industrial activity in FMCG, Steel, and Cement.

Consumer Behavior

Rising e-commerce demand is driving the need for faster, tech-enabled FTL services and green delivery options (EVs).

Geopolitical Risks

Indirect risks via fuel price volatility driven by global oil markets and potential regulatory changes in emission norms (BS-VI and beyond).

⚖️ Regulatory & Governance

Industry Regulations

Subject to environmental regulations for aging fleets and labor laws. The auditor noted non-provisioning for gratuity under AS 15 (Employee Benefits), though the impact is deemed not significant.

Environmental Compliance

Spent ₹25.00 Lakhs on CSR including environmental protection. The company is aligning with Gati Shakti objectives and deploying EVs to reduce Scope 3 emissions for clients.

Taxation Policy Impact

The company follows standard Indian corporate tax rates; specific effective tax rate % not disclosed.

Legal Contingencies

Pending litigations exist regarding emissions and labor, but specific case values in INR are not disclosed in the provided documents.

⚠️ Risk Analysis

Key Uncertainties

Fuel price volatility and the ability to pass on costs; driver shortages affecting fleet utilization; and cybersecurity risks due to high IT integration.

Geographic Concentration Risk

Operates via 27 branches nationwide; while pan-India, revenue is likely concentrated in key industrial corridors of North and West India.

Third Party Dependencies

19.05% of revenue depends on hired fleets; loss of reliable third-party vendors during peak seasons could impact scalability.

Technology Obsolescence Risk

The company is mitigating this by investing in digital transformation, IoT, and automated financial controls with real-time reporting.

Credit & Counterparty Risk

Receivable cycle is 69.93 days. While clients are reputed (Safexpress, Bluedart), the high concentration (78% top 10) creates significant counterparty risk.