Thank you, Swapnali. Good afternoon and very warm welcome to everyone.

Thank you for being on the call of TCI Express Limited. We are happy to have the management with us here today for question-and-answer session with the investment community.

The management is represented by Mr. Chander Agarwal, Managing Director; Mr.

Mukti Lal, Executive Director and Chief Financial Officer; and Mr. Pabitra Panda, Chief Business Officer.

Before we start with the question-and-answer session, we'd have opening comments from the management. I will hand over the call to Mr.

Chander Agarwal for opening comments. Over to you, sir.

Thank you, Mr. Vikram.

Good afternoon, everyone, and welcome to the Q4 FY '26 earnings conference call of TCI Express Limited. I would like to thank all of you for joining us today.

I hope you and your families are doing well. Our earnings presentation for the quarter has already been shared in the company's website and with the stock exchanges, and I trust you have had the opportunity to review it.

To begin with, I will provide an overview of the business performance, operational developments, and key strategic initiatives during quarter four of financial year '26. Following this, our Executive Director and CFO, Mr.

Mukti Lal, will take you through the financial performance in greater detail. Q4 FY '26 marked another quarter of positive business momentum for TCI Express, with the company delivering sequential improvement and maintaining its growth trajectory for the second consecutive quarter.

During the quarter, the company strengthened its multimodal logistics capabilities, customer engagement initiatives, and operational execution across business verticals. Demand trends remained encouraging across pharmaceuticals, automotive and engineering, renewable energy, consumer goods, and SME-led shipments.

The operating environment during the quarter remained challenging due to geopolitical tensions and the conflict in West Asia, which resulted in elevated airline fuel prices and increased logistics costs across the industry. Additionally, higher labor costs and temporary business disruptions arising from the voter-related SSR activities impacted operating conditions across select markets.

While these external factors created near-term pressures on business operations, the company remained focused on service reliability, network efficiency, and customer-centric execution, while maintaining a cautious approach towards the evolving market conditions. The Surface Express business remained the largest contributor to the company's operations during Q4 FY '26, supported by customer additions, improved traction across industrial and SME-led shipments, and higher contributions from key sectors, including automotive, defense, solar, EV, and pharma.

During the quarter, the company expanded its last-mile delivery network through new branch additions and strengthened operational reach across key regions. The upgraded Nagpur sorting center also commenced operations with enhanced handling capacity and improved processing efficiency to support higher cargo volumes and faster turnaround times.

Other business verticals also delivered healthy momentum during the year, supported by focused operational execution and network optimization initiatives. Rail Express recorded strong growth, driven by rising adoption of rail-based cargo movement, consistent service reliability, and expansion of dedicated rail operations on key long-haul corridors.

Domestic Air Express delivered strong operational performance, supported by improved air connectivity, shipment consolidation initiatives, optimized cargo planning, and increased traction from pharmaceuticals and temperature-sensitive cargo segments. The International Air Express business strengthened its global network reach through customer additions, international partnerships, cargo consolidations were also taken during the year.

C Express segment maintained healthy growth through the higher express trucking movement, conversion of existing customer opportunities, and traction from industrial sectors as pharma, automotive, and manufacturing in general. Meanwhile, the E-commerce Express segment continued to witness strong momentum, supported by growing volumes from D2C brands, marketplace sellers, and expansion of last-mile delivery operations across key metro markets.

Across these segments, the company continued strengthening technology integration, operational visibility, and AI execution capabilities to further improve customer experience and overall delivery network. During the Q4 '26, TCI Express reported a year-on-year total income growth of 6%, along with sequential improvement over the previous quarter.

The company also maintained healthy capacity utilization levels during the quarter, while continuing to focus on operational discipline, cost optimization, and network productivity. FY '26 was a year of significant achievements for the company as it crossed the 1,000 crore balance sheet milestone and surpassed 1 million tons of cargo handled during the year.

The company continued to maintain a debt-free balance sheet with sustained focus on cost discipline, operational efficiency, and liquidity management. Reflecting its strong financial position and commitment toward shareholder value creation, the company also declared a higher dividend total for the year.

Furthermore, during the year, the company continued to strengthen its focus on leadership development, employee engagement, and social responsibility initiatives. TCI Express was also recognized as a Great Place to Work for the sixth consecutive year, reflecting the company's strong people-centric culture and workplace practices.

Furthermore, during the year, through the TCI Express Foundation, the company also continued to undertake community-focused initiatives across preventive healthcare, Olympic sports training, rural development, environmental sustainability, and vocational skill development under programs such as Kavach, Shaurya, Samanta, and Saksham, positively impacting beneficiaries across multiple regions and reinforcing the company's commitment towards inclusive and sustainable community development. Looking ahead, TCI Express remains focused on strengthening its multimodal logistics capabilities, expanding technology-based AI operations, and improving customer engagement across the service verticals.

The company continues to focus on infrastructure expansion, operational automation, rail corridor pairing, specialized cargo movement, and B2C network development to support long-term growth opportunities across the express logistics sector. While geopolitical uncertainties and elevated fuel prices may continue to create near-term challenges for the logistics industry, the company remains focused on operational efficiency, service reliability, and customer-centric execution.

With this, I would now like to hand over the call to Mr. Mukti Lal to take you through the financial performance for Q4 FY '26.

Thank you.

Thank you, Chander sir, and good afternoon everyone. I will now take you through the financial performance of TCI Express Limited for the quarter and financial year ended.

As our Managing Director has already highlighted the business environment and operational development and service initiatives undertaken across key verticals in the company, I will primarily focus on financial and operational highlights for the quarter and full year. For quarter four, I hope everyone has been gone through our website for this investor presentation.

We achieved our revenue growth of ₹327 crore as compared to ₹308 crore in Q4 of last year, registering a growth of 6% plus, and on a sequential basis we have grown 4%, and total income stood ₹331 crore in this quarter. EBITDA for Q4 stood at ₹37 crore as compared to ₹34 crore in Q4 of last year, it is reflecting a growth of 11% year-on-year basis, and EBITDA margin for the quarter is 11.3%.

Profit after tax is stood at ₹21 crore, which is also similar of last year, and with a margin of 6.3%. For the full year, we also increased the income after 2 years.

Our income is ₹1,236 crore in against of ₹1,208 crore in last year, reflecting a growth of 2% plus. EBITDA for this year is ₹146 crore with the margin of 11.7%, and profit after tax is ₹90 crore with a PAT margin of 7.2% for the whole year.

Four overall performance during the year reflect stable operating execution, discipline in cost management, and continued focus on operational efficiency across the network despite the challenging, as you all aware, operating environment during this quarter. From a return and efficiency perspective, return on capital employed for FY '26 stood at around 20%, reflecting efficient capital utilization despite continued investment towards construction structure and network expansion.

Current ratio is also remained healthy at 3 times, highlighting strong liquidity position, continued and balance sheet flexibility. Working capital management remained stable during the year with a continued focus on receivable management, which has been maintained even reduced by 1 day, which is from 59 to 58 days.

Operational efficiency and disciplined cash flow monitoring, the company continued to maintain healthy working capital metrics, supported by asset-light business model and strong liquidity profile. The company continued to maintain a debt-free balance sheet during FY '26 also, and we will intention to keep the same in future as well.

Net cash position remained healthy at approximately ₹136 crore as of 31st March 2026, providing strong financial flexibility to support future growth initiative and operational requirements. Cash flow from operations is also very robust at ₹112 crore during the year.

The company incurred capital expenditure of ₹67 crore primarily towards branch expansion, construction of sorting center, and technology enhancement initiative across business verticals. I just would like to clarify there, earlier we have in a capex plan of ₹500 crore from FY '23 to '27, and which being revised from ₹500 to ₹400, and in this year we have planned to be execution of around ₹130 crore, as ₹270 crore we already spent in last 4 years.

After that, we will be put in another plan for the next 5 years. To summarize, the company deliverable stable financial position supported by discipline execution, healthy liquidity position, and continuing focus on operational efficiency.

Going ahead, we will remain cautious about ongoing industry challenges, including geopolitical uncertainties, volatility in air fuel prices specifically, increase in labor and operating cost, and regulatory disruptions such as SSR, which may continue to impact logistics demand and cost structure across the sector. However, our priorities remain centered on managing financial discipline, strengthening cash flows, and supporting long-term scalable growth through focused investment across multimodal logistics capabilities and technology structure.

With this, I conclude my remark. We can now open floor for the question and answer.

Thank you, everyone.

Thank you to give me first opportunity. Chander ji, I am shareholder since so many years, and I always try to ask questions in the concall.

I remember when we made some concall 3, 4 years back, and what was our target for company, which is now going down and down and down. Market is there, you can't do anything.

Sir, my point, page 18 of investor presentation, you see our total income from 2023 to 2026, in 4 years are same. Profit margin reduced from 11.2 to 7.2%, that is net profit margin.

In spite of our modernization of sorting center and we do not have any debt. What is going on in business?

Can we start worst is over?

Hello Mr. Ravi ji.

Thank you for your question. I also said this many times like in the last concall also that it is a cycle that you cannot really avoid.

When we had the COVID, there was zero business, and you can see the graph went below the line. When COVID was over, we shot up to 30% growth.

That's a knee-jerk reaction. Then slowly it came down to 18%, and then 15%, and then 5%, and so forth.

This is something which you're again playing the demand and supply cycle, which has taken 5 years to settle down in at least the logistics industry. There is nothing that we have done to not mitigate that.

We have still paid out dividends, unlike other companies, religiously for the past 5 years, and substantial amount of dividend. I don't think that we should discount the cycles or the business cycles that one has to adhere to, especially after something like COVID.

Going forward, of course, the 5 years it takes to kind of even out the graph, and then start going up again. I think it's only a matter of time you will start seeing the same level of growth that we were used to earlier.

Right. I understand, sir.

Can you bifurcate our total volume in rail,

road,

air traffic, and trucks?

Ravi ji. Basically, you see total we have in this multimodal revenue is around 18.5% for the full year in FY '26.

Over the period we also felt, to depend on the one business is also sometime risky. To mitigate that, as we put in a focus to offer other services also and added one by one, like rail and then C2C and then refocusing now on e-commerce.

This is our strategy now to making this around 18 and 18.5%, which want to become in around 22% to 25% in next 2, 3 years. We continuously making effort to de-risk the existing model.

Though again Surface Express, my road segment, and where we have the highest stake, and that internally also as we understand your concern of the growth, and that's why if you see and you might be appreciate for that, in last two quarter we start to growing in the range of single digit, and surely for this quarter also we will be start to grow further on that. Soon you will be see rebound on that.

You also, please understand, in spite of that reduction of a margin, we are still on above that levels in PAT level. This is also our target to have all the time to healthy growth, not the growth to just compromise on the margin and all.

In spite

I understand, sir.

This is the case,

yeah, I hope I This means, aapna, rail, road is 18.5%?

No, no. Basically rail, C2C, air, all put together, and e-commerce.

Together is 18.5%,

yeah,

yeah. Not alone rail.

Okay. One last, sir, due to spike in fuel prices, any fare we have increased in current quarter?

Nowadays is a buzzword, and everyone is concerned about that. Ravi ji, there is a sequential changes happening in fuel prices.

Though it is a natural passing on process is there, but we wait for some time because we seen ultimately diesel has to be increased by at least ₹10, which we already seen is ₹8 has been increased. We have taken some time lag to passing on to customer because that sequential happened in a 10 to 15 days.

Now, we already passing on to our all the customers, barring I think 10% to 15% we negotiate with them. Otherwise, is a directly natural process to be passing on all that.

We did that.

Thank you.

Thank you.

Thank you. Okay.

Hi, good afternoon. Sir, just had a couple of questions.

One is if you can indicate what was the volume in the fourth quarter and the volume growth for the quarter,

yeah? Whole volume, Alok ji, is 2,67,000 precisely.

The whole year we crossed again 1 million, and in precisely 1,004,000 basically. Volume growth in this Q4 is 4% over last year.

Right. Okay.

Sir, just wanted to understand, the growth has been pretty restricted. It's been in the mid-single digit.

It's slightly lower than that in the last even if you look at seven, eight quarters. If you can just highlight what's happening there, because the market does not seem to be reviving, at least for us.

Also the margins, which used to be pretty high number at 15%, 16%, and even if you take a normalized margin of 12%, 13%, we are now at around 10% to 11%, which seems to be now the stable state margins. Just wanted to get your sense on where the volumes are headed.

If you were to take FY '27 volume guidance from you, just if you can highlight on that, because the volume guidance which we have been giving due to different reasons, the numbers have been lower than that, and which has also, I believe, impacted the margins. Just some thoughts on that would be helpful.

In this quarter we given a guidance of around obviously high single-digit growth, which is around 9%, 10%, and we achieved 6.5%, I think handsome job done on that. We somehow could achieve again 9% or 10% also, but after March, I think not major, but 1.5% kind of growth we disrupt due to this all geopolitical situation and major disruption on air side, where our international business is also getting affected after this Gulf war started on a February end.

Air domestic business also, because there is a disruption in the pricing, because ATF is increased in a 50%, and obviously international prices shot up 2x or 3x, people has hold up their material and all. That's why we somehow couldn't achieve 1 1.5% more growth in this.

Second thing, margin-level type, as we mentioned in a last time also, one reason was to consolidation of airline, which is again beyond our control. This quarter is again a disrupted quarter for that rate prices and all, you as aware about that, and again it is not in our hands.

Also is an impact on the other side, where once prices increase in air, people shift to other mode of transportation, might be obviously in Surface or rail or whatever it is. This is also happening because prices are high.

Still, I think you will be see the number, very good number in quarter one for the air business also. We're putting effort for that to how to mitigate whatever cost has increased in last year, which we need to pass in on to customers.

I think that sense this time is very good because in our industry, fortunately, unfortunately, people or customer are ready to take the effect of fuel increases, but not other cost increases. Or you can say in general time increase, like consolidation of airline happened and supposing air cost has increased by 10%, nobody's ready to give any hike.

They're saying it's your problem, and there's no general hike happened, no diesel hike happened, we will not be give to that. Now ATF is increased, everybody's ready to give that price hike, and that's we are also taking.

Another thing is obviously privatization of these airport ground, it is also beyond our control. These are two things even my cost has been disrupted by 1, 1.5 basis points.

Second, lower volume has dropped my utilization level of truck, which is really we can't be take the risk to reduce the capabilities for the temporary period, and then you added on that. Whenever you reduce the capacity, then you add now on a slightly higher cost.

Third thing, labor cost, everybody's talking about in industry where labor cost is disproportionately increased for every logistics player, on my overall cost is almost increased by 100 basis points. Though this cost is less than 10% to overall cost, but you can see there is an increase of 15%, 20% on their cost, because otherwise you can't be retain the labor in nowadays, because there is again continuous elections was there, and then labor is going for SSR process is also happened across India.

You can see disruption in cost side also continuously going on. Alok ji, as you appreciate, still in the industry if you see in express industry, PAT level we 7.5%, and obviously we had to be willing to be bring back to be double-digit margin on a PAT level, because again we don't have any cost in taxation and interest in that part.

We are very willing, and we increased our capabilities in multimodal all the services, which you seen the traction, and margin will be soon increased on that part. FY '27, again we have in a intention to be increased at least 100 basis points to 150 basis points on that with a revenue growth of double digit plus.

Yeah. Volume growth, what is the guidance for '27?

It is again 10% plus.

Okay. In April and May, we already have kind of lost some growth in the first 2 months because of the reasons you mentioned.

You think this 10% is achievable even after that?

I think for us, even April was not that bad, what we thought of, and May is also I think is going good. I think quarter one will be given with again kind of single-digit growth, and subsequently in a quarter-on-quarter basis we will be improved because now I think you must be gone through with our presentation where in multimodal all the services we grown almost 20% plus.

That capability will be help us to be grow in this year, and supposing we will be grow these all product 25% and then Surface is also in around double-digit growth, ultimately we will be achieve this 10% for the sure.

Got it. I think that's all from my side, sir.

Thank you and all the best.

Thank you.

Thanks for the opportunity. Sir, I have one bookkeeping question.

If I look at our depreciation expense, it is up by about 50% to about ₹9 crore. Even the interest expense has increased to about ₹1 crore odd.

Is there any change in the depreciation policy, and what kind of quarterly trend should we expect from here on?

This is a good question. Basically, what happened, we had taken two big sorting center on lease on a longer term, one in Mumbai, one in Kolkata.

That's why it has been added in ROU assets, basically. Right-of-use asset has been increased, and that's why is come in depreciation portion.

This will be I think will be next year onwards, this will be in a same range. That's the only reason.

Understood, sir. There's no

depreciation policy. Depreciation is almost per quarter is around ₹6 crore or ₹6.25 kind of depreciation would be that in each quarter.

Right. You mentioned that we have taken lease for two sorting centers.

I think our total count remains intact at 28. If you can clarify on that a

bit. Basically, earlier we have a policy to take all the assets on a less than 1-year contract basically, and get renewed wherever it is applicable.

That's why that has not come into right-use asset Ind AS. Now as we are taken because nowadays is a good to having longer tenor for the lease, because in Mumbai, we had taken for the 5-year lease, because we freeze the rent hike and all.

Same way we also taken on Kolkata also. In Mumbai we vacate existing one, which we are taken on a 1-year, and new one taken for the 5-year lease and on the bigger space.

Same way in Kolkata, we vacated earlier one and gone to new one with the again 5-year lease. That's why this has been increased for this one.

Number is the same, we replace with the existing to new one. Understood.

Understood. Sir, in this quarter, you highlighted that our volumes were at about 2,67,000 tonnes, which is a 4%, 5% growth on a YoY basis.

Can you highlight what is the growth in the Surface Express volumes, that is one? Secondly, even on the margin side, if you can just clarify one thing.

If I look at our multimodal business, I think domestic Air Express has grown by about 18%, even the growth in the Rail Express business is about 35%. To an extent, I think the growth that we are seeing in volumes could be driven by these multimodal segment.

Our margins have come off, and you highlighted certain inflationary pressure, and I do understand about these reasons hitting our margins. Is this new segment, the multimodal segment margin dilutive in nature, and how to think about margins from here on, given Surface will continue to dominate the overall mix?

This is a good question. Sir, basically, what happened, there is a disruption in cost in air domestic and air international.

This is a temporary effect where margin has been down, otherwise is almost same to Surface or slightly higher on that. Rail margin are very stable.

C2C margins also very stable. Disruption in margin only in air domestic and international in this quarter.

Going forward, that will be again more than Surface for the sure. Surface margin also we will be improved with this one, because now as a diesel price has increased, you seen in '21 or '22 where our margin has been jumped almost 300 basis points in a single year due to that arbitrage benefit we have taken after diesel prices has been hiked very sharply on that year.

In this year is also sharply increased, and we talking about the each and every customer, and we passing on to our customer on our selling price, and we giving effect of price hike to my vendor on my cost price. Arbitrage of this one is very good, kind of 30%.

Hopefully, we trying to maintain that, and surely it will be help to improve my margin and everything will be synced with that. Sometime this time lag is very important, because with a cyclical, where supposing tomorrow again government increased 5% of diesel prices, then again, you establish the process, you discuss with customer, you increase the prices with the customer, and everything done.

Then suddenly you also get the hike of ₹5, then you again go and convince them, and then somehow you need some time for that. That might be hurt, supposing one or two again increases happened, which is we don't see really, because ₹8 is I think fine.

₹1 or ₹2 might be increased, but supposing tomorrow they will be increased further several rupees, then again becoming slight challenge to be again go to customer and convince them and then increase the prices. Otherwise, supposing is stable, that's why we giving in a cautious statement also because this time is highly highly unpredictable environment is going on.

Though we are highly profitable company and we are also chasing all the time stable margin, stable cash flow position and all. Depending upon slightly on these geopolitical situation, which we right now not seeing anything deteriorating, but right we seeing now is a stable one.

Hopefully, we will be increase the margin for the sure for 100, 250 basis points for sure.

Sure. Sir, one last question from my side.

What was the capex to upgrade the Nagpur sorting center, and what kind of reduction in sorting time have we seen because of this automation, that is one? Secondly, what are the timelines for automation in Kolkata and Ahmedabad, if you can just clarify, and also the capex that we need to incur for these automations?

Very good. Basically, on Nagpur we were on a lease basis.

Now we built up our own one, and for clarification for everyone, this is not fully automated one. This is a semi-automated one because this is not a big facility.

It is around 70,000 to 75,000 square feet facility only. That's why I don't see any changes on cut off any time in router and all.

This would be I think almost same or hardly 5% to 7% changes on that, because it's not fully automated one and it's no sense to be having automation there for this purpose. For this year we make a total capex of ₹67 crore, which we spent on ongoing projects also, which is going on one in Lucknow, another one in Ahmedabad, and Kolkata.

These three locations is also going, and future we also built up in next one will be in Chennai and Bangalore, we will be try for that.

Sir, the automation timelines?

Kolkata and Ahmedabad will be automate, and I think Ahmedabad and Kolkata construction will be finish in this year, and automation will be ramp up by next half year, in FY '28 half will be there.

Sure, sir. Thank you.

Thank you so much, and all the best.

Thank you, please.

Yes, thank you for the opportunity. Sir, my first question is that as you have changed your recognition method for the warehouses, just wanted to understand on a like-to-like basis what were our EBITDA profits?

Sorry, can you come again? I couldn't get your question.

As you said that you are now leasing our warehouses' space, the recognition methods related to rents have changed to Ind AS 116, right, which is pouring down through depreciation and finance cost. If on a pre-Ind AS basis we would have looked at, what would have been our EBITDA profits for the quarter?

This is actually extra line, usually we getting on an annual basis only, there would not be many big change. This hardly whatever EBITDA has increased, you has seen on a PBT level we also same way.

Right.

If I understand that ₹4 crore worth of interest and depreciation expense have increased on a YoY basis, our EBITDA profits would have been ₹28 crore rather than ₹32 crore?

Not really, because some depreciation is usual depreciation is also increased, which is assets we increased like Nagpur increases, and last time Indore has been added in just end of the year, full-year depreciation is coming and other assets also coming. I think yes, you rightly said around ₹3 crore kind of this leasehold has been.

Otherwise, it's ₹29 crore on EBITDA level, and PBT level obviously is the same otherwise. Right.

Right. Secondly, I wanted to understand this thing that will it be possible for you to provide volumes for non-surface?

Non-surface volume actually, sir, this is a very unpredictable on the sense because in international is a different different countries we're serving. Volume is again, supposing it's going Canada or US or supposing it's going UAE, volume is really highly unpredictable, and there is a no value on that.

In air and rail we don't want to be give, once it will be become in a sizable one, then we will be start to disclose. Otherwise, is because again very niche segment on rail and all, because we're doing through the passenger trains.

This is really very niche segment, we really don't want to be disclose on that please.

Got it. Would it be fair to assume that the realization that we are getting on rail passenger as you are saying is somewhat equivalent to what we have in Road Express, Surface Express?

No, it is on that sense, yes, it is mid of air and Surface. It is almost 2.5x to 3x sorry, 2.5x almost to Surface basically.

That is that. Pricing?

Got it.

Got it.

Supposing I am charging ₹15 for Surface, rail would be in the range of ₹35 to ₹40, and obviously air is in again ₹80 to ₹100. This way.

I'm

just giving an example, it is not exact number, but I am saying on that way.

Generally logistics industry, if I'm not wrong, becomes profitable when there are to-and-fro movements of goods taking place in a particular trailer or a truck, and similar when it comes to passenger railways also. If it would have been direct freight corridor way of doing things, we would have required to become profitable, we would have required to-and-fro movements of goods taking place.

As we are doing it through passenger train, will it be fair to assume that we are profitable on operating levels in our rail business?

Good question. Basically for clarity for everyone, in rail and air it is not applicable what you say, like to and fro not required.

Air operations are completely different, where we hiring the space on because these prices are also completely different. Where busy route having a different prices and empty route has a different prices.

Supposing I am bringing the material from Delhi to Kolkata is a different price, even for rail and air also, and from Kolkata back to Delhi prices are very low. This is not applicable on that.

It is we hiring only space wherever we required from the directly railway also and through agent network also. This is a good profitable business in rail side and air side.

Same way in air, they providing the belly space, we directly having now connection with the biggest airline in India. That is also advantage there.

That's why I'm saying ki on air prices we had taken very high control and now it is under control, and we will be show the margin improvement in spite of these all ATF increase and all, because we've taken the direct slot from the biggest airline in India. That will be really giving advantage to giving a preference of the cargo also, and obviously price stability also in this challenging environment.

On that sense, gross profit in both the cases is more than 30%.

Got it. 30% plus.

Good to hear that. Similarly are we seeing demand escalating towards this compared to Surface?

Because in my understanding, what happened in last 1 year is that the Air Express industry has not grown, maybe broadly 2%. However, the surface industry has seen growth in double digit.

It is just that we have not seen that kind of a growth compared to peers, listed and unlisted space.

Again, you rightly said this number is showing that way, but we should see which segment has been grown on for which product, I am saying, transportation is grown. Basically, if you see, auto is not grown that much, this consumer durables has not grown that much, lifestyle product has not grown that much.

Other product, if you see, paint industry has grown very well, pharmaceutical is grown very well. It's depending upon product to product and related to e-com-related product is also grown very fast because quick commerce is increasing.

Depending upon that, but if you see in other industry where we serving, almost everyone is on a same platform in Q4 if you see the numbers. I think the same number on that.

Wherever people are depending upon the e-com industry, they are grown slightly higher, this is fine. Another thing, air industry is we have very minuscule share.

Now we're putting in more branches to getting more business from the SME customer, majorly from tier 2, tier 3 cities. That is really good results to us.

For the rail also, we have the same strategy. There we're putting more branches, more client team where we getting the material from the tier 2, tier 3 cities.

This is really giving a good positivity in the company's business. We will be keep continue with this strategy only.

Got it. We are somewhat focusing more towards the multimodal logistics and focusing that our revenues from that particular segment increases drastically compared to our earlier business?

No. This is not that way, actually.

I am saying slightly higher growth in multimodal, which currently is around 18%, we want to become not much, but 20% to 25% in next 3, 4 year. By 2030, we want 22% plus kind of share from these services.

Means Surface will be also increase on the same way, but slightly because these are as a mature market or you can say existing product where we can be grow in a 10%, but obviously these other services are niche segment, where we certainly grow in a 20% plus kind of growth. They will be having a slightly higher share in each year, but not much like 1%, 1.5% in each year will be increase on that part.

I am saying on that way.

Okay.

The focus is, yes, for the all services, because my Surface is an anchor product, so that must be grow for that.

Will it be possible for you to provide the revenue mix from SME and non-SME client?

This is since last two decades, we maintaining in a 50-50. Right now is around 48 to 52 because again, everyone knows, SMEs are under stress slightly.

We are trying hard to be getting back into in 50% plus obviously. In this year, results are very good in this last 2 months.

Hopefully, in each quarter we will be maintain in this year onward in a 50 50-50, which we maintain since last two decades.

Got it. One thing, I'm happy to see that we have met a volume of 2,67,000 for the particular quarter.

If I look at last 24 quarters, this is the highest volume that we did. Just wanted to understand that going forward, will it be possible us to maintain the current run rate of volumes and make sure that we would be able to grow on a conservative basis, because I understand that this is industry dynamics where the sales comes from the perspective when the logistics industry is booming, the client person industry is moving.

Just wanted to be very clear that on a conservative basis also, we would be able to grow our volumes 8% to 10%?

Yeah. So 10% is achievable, and we will be surely achieve for that.

We making lots of effort for that I have said, internally in Surface, we also put in a people or vertical-wise, each team is giving in a special focus on new segments also, like EV vehicles, and solar, and defense, this is a new segment where we don't have the business. Supposing on EV, we are very less present.

Now we're giving a focus on that, and you see many, many electronic small vehicle companies is coming. We started doing relationship with them.

Certainly internally in Surface Cargo, also we will be have the focus for the different verticals to getting a more market share from the customer and all. Obviously, price hike is also happening this year.

Overall growth I will be finish in the range of 12% to 15% with the price hike also. Volume would be certainly we will get in more than 10%.

Got it. Just one last one from my side.

As the prices of diesel have increased, I understand that we would be able to pass it on to our clients, maybe in slight lagged manner, but I just wanted to have your view on unit economics related to EBITDA per kg. Today, we make what, ₹12.3, ₹12.4 per kg of revenue, and our EBITDA is around 1.27 to 1.

₹1.25 to ₹1.27. We have been in the range of almost ₹2, ₹1.8 EBITDA per kg historically.

Just wanted your guidance how we can improvise on our operating expenses so that we can actually reach back to those levels again?

I think I already replied on that, but again to repeat that, basically, if supposing these fuel hikes has already been stabilized and there is no hike happen in future, which we also discussed with the client and handsomely passing on to customers, almost 85% we pass on to customers, but supposing tomorrow again is increasing up to ₹7 or so, then it's slightly challenge and might be we also bear that cost for the some extent. This is all depend.

Supposing any disruption and this Gulf war is going on longer period, then indirect impact also there, because there is a two impact. One is diesel cost, but certainly other input cost is also increasing gradually.

Dollar is what you seen is in a worse condition, rupee-dollar ratio and all. Labor cost is still bound because government want to be given a set social security to these guys.

Minimum wages is increasing continuously for and over and above each state government also want to be putting very high pressure to be implement these norms by every stage, and we are as a pan-India company. Slightly is all depends, but we are very confident to be passing on everything and to customer.

Environment that sense, customers are very positive to accept these increases because they are also aware about the situation, and there is an overall pressure for that from each service provider for this customer. By these conditions, yes, we will be improve, supposing this is stabilized in current time.

Then certainly, we will be improve the level from 100 basis points to 150 basis points in EBITDA level for sure.

Got it. Okay.

Thank you so much, sir. I'll join back the queue.

Thank you for the opportunity. Just wanted to have an understanding on your branch expansion and manpower addition plans going forward.

Basically, branch expansion as we opening up the branches almost in last year we opened around 70 branches, where is majorly open for the air and rail business because these are new businesses where we want to in a different focus to getting more revenue from that, that's why we opening up the separate branches also, and around 15, 20 branches in a Surface business. In this year also, we have very good setup, we have very good study in our hands where we have to be open the branches for these all products.

Again in this year 40 branch would be open for Surface business, and 60 branches for the rail and air and C2C put together. Again expansion plan for the 100 branches would be there in this year.

Got it. Also I think I might have missed out on that point.

Could you provide some reason on the increase in depreciation for this quarter, and going forward what can we expect to be a sustainable rate or amount of depreciation on a quarterly or on an annual basis?

Again, I had gone detailed reply for that, but this is basically on due to ROU has increased, that's why this number is there. I think in run rate would be for the whole year around ₹30 crore to ₹32 crore in next year, because this is around ₹2.5 crore around amount has been increased ₹2.5 crore to ₹3 crore increase due to ROU we have taken in this quarter, and it will be also same in the next quarter as well.

Got it. Sir, just one more thing.

On the volume growth, you said that you expect a 10% sustainable volume growth on a conservative basis. Based on the volume growth, what kind of revenue guidance would you give out?

It is again because now is a price hike time, and we also passing on to customers handsomely, for sure 15%

plus. This is for FY '27, or you're targeting for a long-term basis?

Again, it is very hard to say after that, but again for FY '27 we are for sure, 15% in revenue growth I am saying, and volume is 10%, 10%, 11%.

Got it.

Sure. Okay.

Thank you.

Hi, sir. Thanks for the opportunity.

I had joined the queue late, I might have missed out this. What has been our capacity utilization for this particular quarter?

Capacity utilization slightly improved on quarter-on-quarter basis. In this quarter was around 83% percentage utilization was there in this quarter.

83%, right?

Yeah, 83% plus. Kind of 83.25%.

Got it. Thank you so much.

Hi. Sir, multimodal revenue last year FY '25 was 17% or 17.5%, and yeah, what was the full-year growth in multimodal business?

This year is around it is now around 18.5%, overall whole growth was around 20% in this segment, multimodal.

For the full year FY '26?

FY '26, yeah.

Got it. For FY '27, do we expect this to continue on the multimodal?

Yes, and even slightly increased, but for sure, yes, 20%.

Got it. Understood.

Last question on the e-commerce business. Can you give some more color on who you are competing with, what segments you are in, and what kind of work you're doing?

Great. Basically, in e-commerce business, we earlier also do 4%, 5%, but over the period that has been reduced because we did not have any strategy to be because new service provider was there and all.

Now we refocusing basically more into in D2C segment, where brands directly deliver to customer. Where we have our strength there, because everywhere we have the branches.

We refocusing on that and D2C also. We targeting very SME customer, not the big giants, these again too big boys and all.

We giving intracity deliveries and within the state kind of work, we put more focus on that work. Again, because our target is to having the only profitable business in this segment, otherwise we will not do that.

Our strategy is very clear. We will be do with the client which is in a prime, this top two or top five and then second line.

We are always targeting a second line and very small SMEs which is directly sending to this D2C segment. Our target is that, and to ultimately right now we around 2.5% kind of business in e-com, which we want to be increased to 5% also.

Also we putting in a effort for the B2B segment also in e-commerce, which other companies also doing the same way, where material going from their merchant to warehouses, or warehouses to return to merchants. This business we also focusing for this e-com segment.

This is also giving a good results. We are very near to close in a one big account for that.

We refocusing on that sense also, where we will be do the B2B segments in within the e-com indoor.

You had mentioned q-com also within e-com. What are we doing there exactly?

No, quick commerce we are really not going into that. This is not in our strategy, actually.

Okay. I am D2C D2C and within e-commerce, B2B movement, where they're happening from merchant to these all warehouses of these platforms.

That segment I am saying.

Right. Are we working with any 4PL kind of players, like Shiprocket, Shadowfax, kind of a thing?

Or it's directly with the end SME customer?

Few customers are there. Few customers we focusing, you rightly said, we focusing on that platform also, how we can be more competitive and more revenue can we be taken from these platforms.

We're focusing on that as well, yes. We're getting small businesses from there as well.

Direct, obviously our major strategy to get the direct approach from the SME because we have very good presence with across India, we know the market, we know the geography, our focus is to giving these small customer or direct going to them. Obviously, these platforms is also giving an opportunity to everyone, we also register ourselves in these two platforms and getting business from there as well.

Understood, sir. Thank you.

All the best.

Thank you.

I thank everyone, all the shareholders, to attend this call, and looking forward to speaking again next quarter. Thank you very much.

Thank you. Thank you, everyone.