VRL Logistics Ltd

Meeting Details

• Date: 24 August 2026
• Time: not specified
• Type/Mode: One-on-One virtual meeting
• Organised by: Elara Capital
• Event: Analyst/Investor Meet
• Investor: AMS Opportunities Fund
• Purpose: Discuss business and financial results for quarter ended 30 June 2026
• Presentation: Corporate Presentation filed with stock exchanges on 4 August 2026 will be used

Participants

• Company participants: not disclosed

Financial Performance

• Q1 FY27 revenue Rs 885 crore; up 18% YoY from Rs 751 crore.
• Blended realization Rs 8,546 per tonne; up 9% YoY.
• Volume 1,019,000 tonnes; up from 935,000 tonnes.
• EBITDA Rs 193 crore; EBITDA margin 21.8%.
• PAT Rs 81 crore; PAT margin 9% of revenue.
• Debt reduced to Rs 391 crore from Rs 440 crore.
• Fleet: ~79% debt-free; 13% fully depreciated.
• Branch network added 108 this year and 16 in the quarter; ~1,300 branches.
• Receivable days ~10–12; 85% LTL on paid and to-pay basis.
• Capex guidance: annual Rs 200–240 crore; vehicles Rs 120–140; remainder for property.
• Q1 capex: vehicles Rs 18 crore; properties Rs 49 crore.
• Property capex guidance around Rs 150–160 crore; vehicles around Rs 100 crore.
• Buyback approved: Rs 280 crore at Rs 320 per share; promoters not participating; subject to shareholder approval.
• Year-end debt expected to be at current level.

Operating Update

• South region ~42% of tonnage; growth ~5%.
• West region ~25% of tonnage; growth ~15%.
• North region ~21% of tonnage; growth ~10%.
• Eastern and Northeastern ~10% share; growth ~22–25%.
• Lead distance increases due to new geographies; NTKM impact modest.
• Fuel cost per liter rose from Rs 83 to Rs 94; pass-through via freight.
• Bulk fuel purchases stopped; government subsidies; may resume if crude price falls.
• Rail DFC could complement road; hub-to-hub rail; last-mile road.
• No e-commerce business.

Balance Sheet and Cash Flow

• Debt at Rs 391 crore; end of quarter; debt-equity around 0.3x.
• Free cash flow roughly Rs 120–130 crore per quarter; ~Rs 480–500 crore annually.
• In quarter: vehicles capex Rs 18 crore; properties Rs 49 crore.

Capex and Projects

• Annual capex guidance Rs 200–240 crore; mix of vehicles and property.
• Vehicles capex approx. Rs 120–140 crore; remaining for property.
• Current quarter focus on own hubs; 12–13 hubs converted to own premises.

Guidance and Outlook

• Full-year volume growth guidance around 8%.
• If fuel price remains elevated, 8,546 per tonne realization could persist.
• Margins expected to be maintained; revenue growth from volume and realization.
• July tonnage growth ~10%; full-quarter growth around 9% possible.

Q&A Highlights

• Price realization increased 9% YoY; in-quarter price hike around 5%.
• No major inorganic growth plans; focus on branch/geography expansion.
• Capex plan reaffirmed: Rs 200–240 crore annually; vehicles 120–140; property rest.
• Buyback Rs 280 crore; promoter participation excluded; funding via internal cash; shareholder approval required.
• E-commerce business not present; DFC rail plans are exploratory; margins not materially impacted yet.
• Agriculture contributes 10–11% of volumes; monsoon risk may temper near-term volumes.

Meeting Details

• Date and time: Wednesday, 5 August 2026 at 10:00 AM IST
• Type: group earnings conference call, virtual
• Organizer: Avendus Spark
• Purpose: discuss 1QFY27 reviewed financial results for quarter ended 30 June 2026

Participants

• CFO to represent VRL Logistics Ltd

Additional Notes

• Recording availability: not specified

Meeting Details

• Board meeting scheduled for August 4, 2026.

Key Agenda Items

• Consider and approve reviewed financial results for quarter ended June 30, 2026.
• Consider a buyback proposal including quantum, mode, intermediaries, and related matters.

Other Notes

• Outcome of board meeting to be disseminated to stock exchanges after conclusion.

Overview

• Main activity: surface logistics service provider with pan-India LTL/FTL transport and courier services.
• Reporting boundary: standalone disclosures for FY2025-26.
• Operations span 1,293 offices across 28 states; no international operations.
• Turnover fully from goods transportation; 100% contribution from NIC 492301.

Key ESG Risks & Opportunities

• Energy efficiency: fleet modernization and solar installations to cut energy use.
• GHG risk: transitioning to BS-VI/EVs, expanding site solar, capex focus.
• Water management: recycle wastewater; Varur facility uses bacteria-based treatment.
• Air pollution: regular maintenance; shift to BS-VI vehicles and EVs.
• Occupational health and safety: LTIFR 1.04; fatalities 19; emphasis on driver training.
• Cyber security: policy in place; no breaches reported.
• Material sourcing: diversified supply chain to mitigate disruptions.

Governance & Policy Highlights

• Board oversight; no separate sustainability committee; Audit Committee reviews ESG matters.
• Anti-bribery/whistleblower/human rights policies; Code of Conduct publicly accessible.
• Policies cover most ESG principles; some areas rely on other internal policies.
• No external assurance; assurance not applicable.
• Policies do not extend to value-chain partners.

Social Responsibility & Workforce

• Total employees: 21,511; male 21,208; female 303; differently-abled 3.
• Women on board: 1 of 12 directors (8.3%).
• Permanent employee turnover: ~20%; female turnover 10.47%.
• Well-being spend: 18.24% of revenue.
• LTIFR 1.04; 54 injuries; 19 fatalities.

Environmental Performance

• Total energy: 3,941,611 GJ; intensity 12.24 GJ per Lakh turnover.
• Scope 1: 251,043.8 MTCO2e; Scope 2: 9,204 MTCO2e.
• Waste: total 659,898 MT; non-hazardous majority; E-waste 5.9 MT; batteries 30.74 MT; hazardous 111.69 MT.
• Water withdrawal: 49,750 kL; groundwater 15,841 kL; rainwater 3,716 kL; other 30,193 kL.
• Rooftop solar installed at multiple facilities; renewable energy share not quantified.

Stakeholder Engagement & Complaints

• Stakeholders: shareholders, investors, employees, customers, bankers; annual/quarterly engagements.
• Customer complaints: 345,328 filed; 954 pending; scope expanded.
• Whistleblower policy; branch-level grievance handling; website contact.
• Stakeholder engagement not targeted to environmental or social topics.

Other Notable Metrics

• Scope 3 emissions: 427.48 MTCO2e; travel from company-owned vehicles.
• UNFCCC carbon credits: 74,047 credits; monetization planned.
• MSME inputs: 4.27% of inputs; 100% sourced in India.
• CSR outreach covers education, healthcare, water, and rural development; thousands benefited.

AGM Details

• Date and time: August 4, 2026, 1:00 PM.
• Mode: physical at Registered Office.
• Voting cut-off date: July 28, 2026.
• Remote e-voting window: Aug 1–3, 2026.

Ordinary Business

• Adopt Audited Financial Statements for FY 2025-26.
• Re-appoint director by rotation.
• Re-appoint another director by rotation.
• Confirm interim dividend as final dividend for FY ended 31 March 2026.

Special Business

• Re-appoint Dr. Vijay Sankeshwar as Chairman and Managing Director.
• Remuneration: 40 lakh per month; commission up to 0.75% of net profits.
• Five-year term from Jan 1, 2027; not subject to retirement by rotation.
• Continuation of Virupaxagouda Patil as Non-Executive Independent Director beyond age 75.

Dividend

• Interim dividend paid; final dividend to be approved; amount per share not disclosed.

Appointments & Continuations

• LR Bhat reappointed by rotation.
• Dr. Raghottam Akamanchi reappointed by rotation.
• Board authorized steps to implement resolutions.

Financial performance

• Revenue from operations: ₹3,24,478 lakh; up 1.9% YoY.
• EBITDA: ₹67,389 lakh; margin 20.77%.
• PBT: ₹31,788 lakh; PAT: ₹23,683 lakh; PAT up 29%.
• EPS: ₹13.54; restated after bonus issue.
• Interim dividend: ₹5 per share; no final dividend for FY26.
• Bonus issue 1:1; paid-up capital: ₹174,936,990 shares; promoters 60.24%.
• Net debt: ₹44,021 lakh; net worth ₹114,244 lakh; gearing 39%.
• ROCE: 24.56%; ROE: 21.27%.
• Operating cash flow ₹65,437 lakh; capex ₹29,862 lakh; dividend outflow ₹17,491 lakh.
• ICRA upgrade: long-term rating to A+ Positive.
• Branch network expanded to 1,293; 97 new branches added.
• Fleet: 5,932 owned vehicles; capacity 81,700 tonnes; 216 trailers.

Operations & growth

• FY26 revenue growth driven by rate rationalization; exited low-margin businesses.
• Fuel cost share declined to 24.91% of revenue (from 27.32%).
• Lorry hire costs fell to 4.80% of revenue.
• Geography: Domestic revenue ₹3,20,377 lakh; India-only operations; no exports.
• Tonnage: daily average above 11,500 tonnes in Q4 FY26.
• CAPEX: ₹29,862 lakh invested in fleet and premises.
• Fleet efficiency improved; ~14% of fleet fully depreciated; ~77% debt-free.
• 57+ key projects underpinning expansion and service quality improvements.

Capital structure & dividends

• Equity share capital after bonus: ₹174.94 crore; 174,936,990 shares.
• Promoters: Vijay Sankeshwar 28.33%; Anand Sankeshwar 31.43%.
• Interim dividend paid: ₹5 per share; no final dividend for FY26.
• Total equity: ₹114,244 lakh; net debt: ₹44,021 lakh; gearing 39%.
• Assets pledged as security: total secured borrowings collateral ₹70,779 lakh.
• Credit rating uplift: ICRA upgraded to A+ Positive outlook.

Governance & compliance

• Board: 12 directors; 6 independent; 1 independent woman; 3 promoters.
• Board meetings: 5; Audit Committee: 6; Nomination & Remuneration: 3; CSR: 3.
• Independent Director meeting held on 5 Feb 2026.
• Executive remuneration total ₹882.04 lakh; non-executive sitting fees plus ₹1,072.64 lakh.
• Statutory & secretarial audits: no qualifications; MR-3 secretarial audit; compliance certificate issued.
• AGM held as scheduled; e-voting facility provided; dividends per SEBI LODR compliance.

Dividend policy & shareholder info

• Dividend policy aligned with statutory norms; ordinary course of business.
• Shareholding pattern: Promoters (60.24%), Mutual Funds, individuals, FPIs.
• Top holders include Vijay Sankeshwar (28.33%) and Anand Sankeshwar (31.43%).
• All shares are in demat form; ISIN INE366I01010.

Corporate social responsibility & ESG

• CSR spend: ₹441.46 lakh; 2% base: ₹404.90 lakh; excess ₹47.67 lakh carried forward.
• Beneficiaries: Education, healthcare, rural development, nutrition, sports, environment, women upliftment.
• Carbon credits held: 74,047 certified credits; monetization planned when opportune.
• ESG initiatives: BS-VI fleet, EVs (12 autos, 19 EScooters), rooftop solar, LED lighting.
• Water management: rainwater harvesting, wastewater reuse; Varur facility uses bacteria-based water treatment.
• Waste management: E-waste, batteries, and other waste recycled via licensed channels.

Risks, outlook & industry context

• Road-dominated logistics with 60-65% modal share; policy shifts impact freight rates.
• Driver shortage remains a key risk; VRL supports drivers with benefits and training.
• Vehicle scrappage policy: aging fleet challenges; 814 vehicles >15 years; replacement planned.
• Tax/levy/regulatory changes may affect cost structure; ongoing monitoring by management.
• Outlook: network expansion and freight-rate optimization to sustain margin growth.

Audits, controls & risk management

• Internal controls robust; Ind AS 116 lease accounting with ROU assets and lease liabilities.
• Audit Committee reviews governance, internal controls, related party transactions.
• No material fraud reported; independent auditor’s report unqualified.
• Management maintains risk management framework; quarterly reviews by Audit Committee.

Meeting Details

• Board meeting scheduled for May 18, 2026.

Key Agenda Items

• Consider, approve, and take on record audited financial results for quarter and year ended March 31, 2026.

Other Notes

• Outcome will be disseminated to stock exchanges after the meeting.