TEJASCARGOINDIA Q4 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹636.5 Cr
verification pending
Revenue YoY
25.2%
reported change
EBITDA
₹117 Cr
latest reported figure
Source
bse pending
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Tejas Cargo India delivered solid top-line growth of 25.2% YoY to INR 636.5 CR in FY26, driven by fleet expansion (1,339 vehicles) and higher trip volumes. However, EBITDA margins compressed 240 bps YoY to 18.4% due to elevated market hiring costs and rising insurance and toll expenses. PAT grew modest 9.4% to INR 20.9 CR. The company made meaningful progress on diversification with new verticals (mining, fly ash, coal, freight forwarding) contributing 5.5% of revenue, including a 5-year CNMDC bauxite mining contract worth INR 35-40 CR. EBITDA margin pressure remains a concern given the market hiring cost increase from 7.31% to 6.04% contribution. Management targets FY27 revenue growth in line with FY26, with potential upside of >20% if EV and mining contracts materialize. Risks include competitive pressures on margins, execution challenges in new verticals, and fuel price volatility despite diesel escalation clauses.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects FY27 revenue growth to be similar to FY26's 25.2% growth, supported by core logistics operations and new verticals.
- If the company successfully secures EV contracts with steel/cement clients and fly ash/mining contracts, top-line growth could exceed 20% in FY27.
- Fly ash, mining, and coal transportation segments are expected to grow from 5.5% to 10-12% contribution to total revenue in FY27.
- Through priority maintenance agreements with OEMs like Tata Motors, management aims to improve fleet utilization from 82% to 85%.
Risks flagged
- Market hiring margin declined from 7.31% to 6.04% due to rising toll (8-9% increase) and insurance costs (0.9% to 1.1% of revenue). Management is renegotiating contracts but margin recovery is uncertain.
- Captive diesel procurement benefit reduced drastically from 10-14% discount to only 3-4% over retail pump prices in H2 FY26, impacting cost competitiveness despite supply security.
- New segments like mining logistics and EV fleet deployment (Dalmia cement 10-vehicle contract) require different operational capabilities and higher capex. Long-term contract profitability remains unproven.
- Top 10 customers contribute 73% of revenue (improved from 84% in FY24). While improving, any loss of major corporate clients could significantly impact financials.
Key quotes
- My EBITDA margins moderated during the year primarily due to high market hiring cost and increase in insurance.
- In FY26, our contribution of market hiring was around 21% versus 13.5% that we had a year ago. My margins from market hiring fell from 7.31% to 6.04%.
- We firmly believe that going forward the price difference between retail and captive consumption is not going to be significantly different but it helps in procuring the supply.
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