Thank you. Good morning, everyone, and welcome to the Q4 FY26 earnings conference call of VRL Logistics.

Today we have with us Mr. Sunil Nalavadi, the CFO of the company.

I will now hand over the call to Mr. Nalavadi to provide some opening comments, and then we can take up the Q&A.

Thank you, and over to you, sir.

Thank you, Alok, and good morning to everyone. I warmly welcome all of you to the earnings conference call of our company to discuss the financial and operational performance for the fourth quarter and year ended FY26.

On the outset, I would like to inform you that we have completed 50 years of service in the logistics industry. Our promoter, Dr.

Vijay Sankeshwar, started this company in the year 1976 with self-driven single vehicle with one route. Today, the company is operating with 6,000 owned vehicles along with hired vehicles as well.

Today, the operations of the company spread across 24 states and 4 union territories with around 1,300 branch network. We cater to all the commodity segments with 10 lakh plus customer base.

We are very much thankful to all those who supported us in this journey.

I'm sorry to interrupt you, sir, but your voice is muffling.

Shall I repeat it? Hello?

Hello? Yes.

Just a few seconds that was muffling, like 5 to 10 seconds. Yeah.

On the onset, I would like to inform you that we have completed 50 years of service in the logistics industry. Our founder and promoter, Dr.

Vijay Sankeshwar, started this company in the year 1976 with self-driven single vehicle with one route. Today, the company is operating with 6,000 owned vehicles along with hired vehicles as well.

Today, the operations of the company spread across 24 states and 4 union territories with around 1,300 branch network. We cater to all the commodity segments with 10 lakh plus customer base.

We are very much thankful to all those who supported us in this journey. I hope everyone has had an opportunity to review our investor presentation, which has been uploaded along with our financial results.

We started this financial year with a strong background of freight rationalization and strategic pricing reforms, including the identification and exit from the low-margin businesses. The year started with a deficit of 13% in our tonnage growth in quarter one, and for the full year, we are in a position to restrict the deficit in tonnage growth by 7%.

We achieved the year-on-year growth in tonnage by around 3% in quarter four. The improvement in tonnage handling on quarterly basis in the current year, proving our efforts to increase in tonnage by adopting the right pricing policy.

We are taking many steps to increase in volumes, especially by expansion in our network by opening new branches in untapped markets, improvement in service quality by focusing more on own infrastructure facilities, which in turn result in the better control of our services, route optimizations to reduce the lead time to deliver the goods, and having the lowest claim ratio as compared to other operators in the industry. When it comes to the financial performance of the company, the quarter four total income stood at ₹859 crore, up by around 6% year-on-year and grew 3% sequentially, driven by improved realizations, new client additions, and the return of some previously lost accounts.

Tonnage saw a quarter-on-quarter improvement supported by new account additions, growth in tonnage from the existing customer, and return of volume following contract restructuring undertaken in last year. Our daily tonnage crossed 11,500 plus tons during the quarter, reflecting improving demand trends.

The realization per ton stood at around ₹8,147, increased by approximately around 3% year-on-year, reflecting freight rate rationalization and route mix. We were able to maintain realizations with sequential revenue improvement by 3%.

The yield improvement remains a key profitability driver and reinforces our focus on sustainable margin-led growth rather than volume-led expansion. On profitability, the EBITDA margin stood at around 21.4%, down by around 190 basis points year-on-year.

I would like to inform you that the quarter four of FY25 was an exceptional quarter with a margin of 23% plus on account of our new initiatives, such as freight rate rationalization, route optimization, etc., were introduced. The margins in the current quarter compared to last year were impacted due to increase in lorry hire charges by around 1.73%, increase in salary by around 0.74%, and increase in vehicle repairs and maintenance by around 0.85%, whereas the fuel cost, which is reduced by around 1.77% to the revenue.

The fuel cost remained well controlled in the current year. Fuel cost as a percentage to total income declined by around 24% from 25.7% due to decline in fuel consumption quantity, and cost is increased to some extent on account of increase in the fuel procurement cost per liter from ₹84.50 to ₹85.54 due to decrease in purchase quantity from the refineries supplied through our own pumps.

The quantity directly purchased from the refineries is reduced from 41% to 36%. We restricted the bulk purchase quantity on account of increase in the bulk purchase rates.

The lorry hire charges increased on account of more hired vehicle engaged to carry the additional tonnage during the current quarter and also due to increase in the lorry hire rates. The employee costs as a percentage to total income increased from 17% to around 17.91%, and vehicle running expenses increased from 4.9% to 5.8% on account of annual increments implemented from August '25 and higher driver incentives paid during the current quarter.

We continue to view these increases as investments in our people, particularly given the industry-wide shortage of skilled drivers, where VRL's on-roll driver model remains a key competitive advantage. With these changes during the current quarter also, we are in a position to achieve the 21% plus EBITDA margins.

The sequential EBITDA margin is increased by around 48 basis points, supported by improved realization and strict cost controls and better asset utilizations. Profit for the current quarter stood at around ₹72 crore.

For the full year FY26, our total income stood at around ₹3,245 crore. EBITDA margin stood at around 20.8%, expanded by nearly 190 basis points year-on-year, supported by a 10% improvement in realizations and sustained cost efficiencies.

The profit for the year is increased to ₹237 crore as against the last year profit of ₹183 crore, with a robust growth of around 29%. The higher profits resulted into increase in cash flows from operation to ₹668 crore from ₹583 crore in the last financial year.

The cash flows of the company have been effectively utilized for the purpose of capital expenditure to the tune of ₹298 crore, mainly for the purpose of addition of commercial vehicles to the extent of ₹101 crore, and ₹165 crore has been invested into purchase of land and building facilities in the critical locations of our operations. The cash flow of ₹175 crore also utilized for the payment of dividend in the current year.

Our balance sheet remains strong. Net debt stood at around ₹440 crore as of March '26, and also the trade receivables to turnover ratio is at around 36 times of the revenue, which will work out the receivable days around 10 days, among the lowest in the industry, underlining the strength of our collection mechanism and diversified customer base of over 10 lakh GST registered customers.

Due to the higher returns, the return on capital employed of the company increased to 25% from 21%, and return on equity is increased from 21% from 18%. Operationally, our network continued to scale.

As of March '26, we operate around 1,293 branches and 50 transshipment hubs across 24 states and 4 union territories. The fleet rationalization continues with the older vehicles being scrapped and utilization of owned assets improving.

Around 77% of our fleet is totally debt-free, and 14% is fully depreciated, providing strong operating leverage. Our strategic priorities remain unchanged: profitable and volume growth, disciplined cost management, and tight working capital control.

We are actively managing the risk posed by current geopolitical developments and potential thereof to cause volatility in fuel rates and other input costs. Looking ahead, while near-term macro uncertainties persist, we remain optimistic.

Improving demand conditions, stronger marketing initiatives, fleet rationalization, and expansion in underpenetrated geographies position to well drive the gradual volume recovery while sustaining the profitability. With this, I would like to conclude initial remarks.

Now I request participant to open for question-and-answer session.

Hello. Good morning, and thanks for the opportunity, sir.

Sir, first question is good to see that the volume growth is coming back on track and then we have registered a first YoY growth during the quarter. Just wanted to get a sense around how do you expect the volume growth momentum in FY27, and what are the efforts you are taking towards boosting volumes on that front, sir?

In terms of volume growth, we are expecting to grow at least around 6% to 7% for the full year basis. We're expecting that at least around 2% quarterly growth on a sequential basis even for the financial year '27.

On a full-year basis, the expectation is around 6% to 7%.

What are the efforts you're taking towards boosting those volumes, sir? I think any

The efforts is basically our rate rationalization exercise is already completed. The customers are very well aware about the structure of the rates and other things.

We are pushing a lot of marketing activities, and we are identifying who are the lost customers and all. Just to inform that we are getting a lot of new customers also, especially wherever we are opening the new branches, new geographies, we are adding the new customers as well.

That is giving a lot of confidence for us to increase the volumes. Understood,

sir. The diesel prices are also going up, right?

Are you planning to further increase your prices to offset that impact of higher fuel cost?

Of course. Diesel prices are increasing, and it is increasing to every operator.

Ultimately the cost, whatever additional cost will come, that needs to be pass it on to the customers. During the recent movement, whatever the rate increases is there, to pass it on that expenses, we have not increased the rates, but some of the selective routes, wherever we've offering some kind of a discounts, and wherever actually the volume growths are coming, we identified such routes, and wherever the rate tweak is required, we have already done it.

For the month of April also, we saw that the year-on-year volume growth is around 8%, and we are maintaining EBITDA percentage in the range of around 21% plus.

Understood. Given the fact that there is going to be further increase on selective routes, does that put pressure around the volume growth expectations because the hikes have been quite recent, right?

Then just to get a sense how do you

No, volume growth pressure is not on account of the increase in fuel rate. Basically what's happening, some of the commodities demands are affecting.

Say, for example, the products which are related to the petrochemicals and all, which are directly related to the crude oil, say, for example, plastic products and all. We're already experiencing in the market that the demand of such product is coming down.

Those things may impact on the volumes, but because of the increase in freight rates and all, because of increase in fuel rates, everybody in the market, each and every operator has to take a call that it has to be pass it on to the customers.

Understood. I could also see in the presentation that you're not currently availing the direct procurement due to increase in bulk fuel rates.

Just wanted to get a sense that while you have guided that the first quarter margins will be hovering at around 21%, but do you see an impact on your margins because of the proportion of bulk supply coming down?

Yes. To that extent, see now EBITDA level, definitely we are very flexible to maintain at around 20% level.

Some basis points may impact on the margin because of this facility has been withdrawn. The bulk purchase is already lost.

Understood. Last question from my side, if I may, sir.

Just wanted to get a sense around capex which you will be incurring in FY27 towards fleet and any hubs which you will be adding during the year.

We identified around two, three locations now which are in the pipeline, especially places like Nagpur, and Raipur is there. Some additional locations we are looking, but overall capital expenditure will be around ₹300 crore for the full year.

Now in the current year also, we invested almost around ₹300 crore. Out of that, around ₹100 crore for the vehicle and remaining most of the capital expenditure for the land and building facility.

Even going forward also, the mix will be like that: around ₹100 to ₹150 crore for the vehicles, and around ₹200 plus crore for land and building. On a full-year basis, we are expecting around ₹300 to ₹350 crore as capex expenditure.

Understood. Thank you for answering my questions.

I'll get back in the queue.

Yeah.

Thanks for the opportunity, and congratulations for the good set of numbers. Sir, on the capex, can you hear me?

Please.

Yes. As you just explained that going forward, the capex will be around ₹100 ₹100 crore on the vehicle and then ₹200 crore on the land and buildings for the warehousing.

In the last three years, in '20 '25, we have done the huge capex of ₹400 crore plus. Where we see our recycling, the refinancing or the vehicle purchase cycle coming back into the picture in '28, '27, or 5 years, 7 years down the line?

No, this capital expenditure is a continuous cycle. See now what happened, the government has put restriction of the life of the vehicle for 15 years.

Even though it is not mandatory, but there are a lot of restrictions to operate the vehicles which are crossing more than 15 years. That's the reason whatever capacity will cross the 15 years, we need to add those vehicles.

Apart from that, whatever tonnage growth will come, to carry the additional tonnage growth also, we need to add the vehicle capacity.

Normally do we replace the vehicle in 5 to 7 years or we keep it till end of the life, 15 years in our fleet?

Normally end of the life, up to 15 years.

Great.

Only in certain circumstances which are outdated or major accident happens, such vehicles will be scrapped even before that time.

Okay. Great.

Second, as we in last one year, we carried out the loss-making or the low-margin businesses. Going forward, will that 10% volume growth rate will come back, or it will be in line with the industry of 5, 6, 7%?

Currently the trend is there are certain pressures in the market. As I said, some of the commodities are impacting because of increase in the oil price.

The products which are related to that, it may be some of the plastic goods or some of the oil-related commodities. There actually demand is already constrained.

In spite of that, actually we are expecting the growth in tonnage in the range of around 6% to 7% in the next year because of our network and catering to many products in the industry. We are not depending on any line of a commodity or line of a customers.

That is giving a lot of flexibility for us to increase the volumes.

Got it. Normally we get a tonnage, but do we have other metrics of the tonnage with that kilometers?

Because there

No, we do not have as of now.

Okay.

The ton-kilometer is what you are asking.

Correct. Lastly, how's the competitive scenario in the industry?

I understand that few of the companies have also increased their prices. Likes of Delhivery, who were being at the lower price, they are also going on the price hike.

How the competitive scenario in the industry as of now? It has changed in last few months or is it still the same?

See,

the competitive scenario, yes, the industry is highly depending on the unorganized operators, but that ratio is coming down day by day. The unorganized market is converting into the organized industry.

Many of the organized players actually taking share of the unorganized operators. About the fuel rate is concerned, whatever increase is there, everybody has to increase the rate, and accordingly everybody is taking a call to pass it on to the customers.

Great. Thanks.

Thank you.

Yes, hello. I just wanted to understand you mentioned that you'll maintain the EBITDA at around 21% and that we are able to pass on our price increases to the customers.

Is there any lag with which we pass on the prices, or we can directly pass the increased cost to our customers?

There will be some lag. See now in the last 1 week only, there are two times increase in the rates.

We cannot increase like this. Definitely we will analyze the trend over a period of at least 1 or 2 months, then we will take a call.

Now because of some disturbance in the bulk supply, what we got impacted and because of this price increase of ₹3 also, we have already increased some of the freight rates in selective routes, not in the entire routes of the company. That is taking care of whatever additional cost we are incurring, it has been already passed it on to the customers.

Like that, in the future whatever changes will happen, we will analyze for some period and again we will take a call to increase the rates.

Okay. We've already taken a price increase in some routes only, not all of our routes?

Yes.

Okay. Even with the lag, are we going to be able to maintain the 21% margin?

That lag will be not much longer period. It will be very short period, say, within a month or so.

Okay. Understood.

Yeah.

My next question is how many branches do we plan to open in FY27?

This year we have opened around 110 branches, and out of that, around 55 to 60 branches which were closer to the existing branch, and some of the nonperforming branches have also closed. In the current year also, we are expecting 100 plus new branches to be opened.

Okay. So 110 net branches have you opened or gross?

How many branches did you close, you said?

Gross it is.

Okay.

Around 60 branches. Net branches are around 40 numbers.

Okay. Even in FY27, we plan around the same number, like 100, 110 new gross branches and then we close around 50 branches?

No, in going forward, the closure branches will be lesser. Net branches itself we are expecting at least around 100 numbers in the coming year.

Okay. Understood.

Thank you so much.

Hi. Thank you for the opportunity.

First question I had was on pricing in the industry versus VRL. Since we've taken price hikes in Q4 FY25 and I believe industry did not follow suit, our pricing was slightly premium or premium versus unorganized operators.

Now in a fuel inflationary environment, when unorganized is expected to sort of pass on these hikes, would this lead to a convergence of pricing, or should we think that that premium range should be maintained because even we'll sort of pass on these fuel hikes as and when the prices are hiked?

Now what is happening, it is inevitable to each and every operator in the industry to increase the rates or pass it on this fuel increase cost to the customers. Accordingly we will analyze the competitor movement, and accordingly we decide our pricing strategy.

With respect to whatever rationalization and other things have been defined based on our costing, that will never change. Say, for example, in some of the route our margin is say hardly anything or some of the customer contracts is giving very low margin, we don't wish to do that business.

We wish to maintain certain operational margin, and accordingly we are going to fix the rates, irrespective of any other operator in that particular route or that particular customer.

Got it. To say, the Q4 FY25 price hike which led to a divergence in our versus sort of industry pricing, that should sustain/remain despite this fuel inflationary environment?

Even in the market, many of the customers who have already left us, they are coming back to us. That's the reason for the quarter four, we are in a position to grow in volume by around 3% on year-on-year basis.

Got it, sir. Sir, second question was any particular reason why our lorry hire charges have sort of increased?

I believe we have adequate number of vehicles to sort of manage our own tonnage, and the purpose of sort of doing this higher capex on vehicles was to sort of ensure that lorry hire charges sort of remain at a minimal. Any particular reason why these have increased?

Now the vehicle capacity has been reduced compared to last year versus the Q4. For example, last year we were at around 6,100 plus vehicles.

Those numbers have been reduced to around 5,900 vehicles. Because of reduction in the capacity of the vehicle and on the other side the tonnage has been improved, to carry that additional tonnage, we engaged outside vehicles.

Got it, sir. Given that our capex plans or vehicle spend plans are stable in the current year as well, do we anticipate a similar number of vehicles being scrapped as this current year?

No, scrappage will not be there, but there will be addition of vehicles. As we planned earlier around 500 vehicles addition, out of that, around 100 plus vehicles have been already added.

Remaining 400 vehicles are going to be added till December.

Got it, sir. The next question I had was on the tonnage contribution from the new branches that we have added in the current year.

Would you be able to share that number?

New branches in the current year addition is hardly in Q4, around 1, 1.5% those have contributed. Because these are all new branches, just they are adding the new customers, and current year the contribution is around 1, 1.5%.

Got it. Any particular plans or strategy of sort of extracting more volumes from these new branches in the coming year because I think we're adding net, you mentioned 100 branches on a base of say 1,300?

That should sort of contribute 7% to 8% volume on our overall base, or they'll take time to ramp up?

It will take time to ramp up, but on a full-year basis again we are expecting that if we open gradually of 100 numbers, we are expecting that on a full-year basis these branches may contribute around 2% to 3% in the tonnage. Apart from that, around 4% we are expecting the normal growth, either from the existing customer or new customer in the area where we are operating.

That's the reason we are in a position to reach around 6% to 7% volume growth on a full-year basis next year.

Got it. Very clear.

Just one last question. Any guidance on what could be our depreciation charges for the next 2 years considering that we have added a lot of hubs in the current year?

I see depreciation has sort of not inched up in the current year despite the capex we have done, any sort of number that you could No,

depreciation cost will not increase because the most of the new properties where we are investing, the value of the land is very high. Land is a non-depreciable asset, there will not be any depreciation cost on that.

Only some portion of the building or infrastructure what we are creating on these facilities will be depreciated. Again, it is for a longer period.

There will not be much impact on the depreciation because of new facilities.

Great. All the very best for the next year, sir.

Thank you so much.

Thank you. In spite of that, what is happening, because of investment in these own facilities, the rental expenses are coming down, and even the lease liability and right-of-use assets in the balance sheet are coming down.

That will further strengthening our balance sheet.

Clear, sir.

Yeah.

Good morning, sir. Thank you for the opportunity.

Just wanted to understand with respect to vehicle mix, if you could call out, and what is the typical kilometers it actually travels on a daily basis on an average?

Sorry, I am not hearing you properly. Will you repeat your question, please?

Sir, my question is in terms of the vehicles, if you could call out what is the average tonnage and what is the average lead distance typically travels on a daily basis?

The lead distance is in the range of around 270 to 280 km. I'm telling you about across all the vehicle categories,

right?

The capacities are in the range of around 15 to 18 tons.

Understood. Any particular reason why we don't maintain ton-kilometer data, sir?

Is it not a relevant metric?

No, ton-kilometer, see, since we are handling n number of routes, it's basically the 1,300 raise to 1,300, that is a kind of a routes where we are operating. That's the reason because of the bulk information, we are unable to compute that information.

We are trying to do that. Let us see if possible, definitely we will share that information to you.

Understood. The second question I had, if you could give some clarity for FY26 for the full year, what is the mix in terms of the industry mix what you used to give earlier?

Also the The

industry mix again, yeah.

Yes. Please go ahead, sir.

The industry mix again predominantly to be driven by the textile and cloth commodities. Currently the contribution from this segment is around 17% to 18%.

That trend is going to be continued. Next line of item is about the agriculture product.

Agriculture again see, seeds, equipments, all put together, fertilizers, all kind of pesticides, all put together is contributing currently around 10% to 11%. Again, the same line of contribution is going to continue.

Only new thing is see, we are planning a good contract with some top corporate entities. Again, predominantly their products are related to either some of the materials are related to textile and similar to that product.

Industry mix will not change drastically.

Textile, agri products combined is about 30%. What about the balance, sir?

Balance again, industrial goods are there. There are pharmaceutical industries, again books and stationery goods, automobile products.

All are in the range of around

Would it be possible to share the mix? Okay.

They are all in 5% to 6%?

Around 5% to 6%, yeah.

Understood. How about the MSME, large enterprises, and the spot bookings?

Spot booking again, see, To-Pay booking what we call, To-Pay and paid booking, which is a spot payment what we are getting from the customers, that is again contributing in the range of around 80%. Account customers are contributing in the range of around 15% to 16%, and remaining FTL, around 6%, 7% full truckload.

There actually the mode of booking will be all the mode of booking: To-Pay, paid, and account.

6% to 7% is FTL, through full truckload you're talking about, sir?

Yeah.

Understood. How about door-to-door mix?

What is that ratio in FY26?

Door-to-door, earlier it was around 33%, 34%. Now it is increased to around 38%, 39%, close to 40% of the commodities are door-to-door.

What is the price difference between door-to-door and the others?

The realization will be around ₹1, ₹1.5 per kg will be more in door delivery.

Understood.

Per kg, yeah.

Sir, I wanted to also understand in terms of the competition, given the price hike or what we have taken, how are our rates compared to the immediate peers? Is that substantially higher?

Is that comparable, or is that lower?

Compared to the unorganized players, actually we are offering some premium rate to the customers. Again, see, here point is in our operations, our competitors are different in each leg of our operation.

For example, express cargo companies, actually they are not directly competitor to us. Wherever we are having some account customer, corporate clients, only in those scenario the express cargo rates can be comparable.

In corporates, actually our rates are more or less comparable with these express cargo companies. In rest of the cases, again it will change the route-wise and commodities also.

For example, we are handling most of the textile commodities from Gujarat to rest of the country. There our competitors are again the local operators.

Means route-wise operators. Say, for example, if textile is moving from, say, Gujarat to Andhra Pradesh, we need to compete with one operator.

Gujarat to Karnataka, again another competitor. Within cities also there are different operators.

Say, for example, Surat-Bangalore, one operator is there. Surat-Hubli, another operator.

Surat-Hyderabad, another operator. Like this.

Depending on the product and depending on the route, again we need to compare with our competitors, and accordingly we are charging. Compared to unorganized players, yes, we are having some premium rates.

In terms of organized players, we are more or less comparable to them. Rate also depends on demand and supply.

Say, for example, some of the operators will not provide service properly or 24/7. In those scenario, definitely we are offering some premium rates.

Understood. I think that's about it from mine.

Thank you so much, sir.

Thank you.

Hello. Thanks a lot for the opportunity, sir.

Am I audible?

Yes, you are. Please.

Perfect. Sir, can you talk a little about the bus business which you have?

We're seeing a lot of new buses on the road. How many buses do you have?

What's the revenue? What are the margins like?

No, currently we are not into bus business, this company is. The promoter, another company is having the bus business.

It's an unlisted entity.

We've seen cargo, etc. going there, so that is at arm's length business?

No, nothing.

Understood. Thank you.

Yeah.

Hi, sir. Just a couple of questions.

If you take all these charges, diesel prices increase and bulk procurement coming down and also the toll charges increasing, how much we are now in a position to increase the freight rates? We have increased at certain routes, but in general, and the talks are that the prices will increase further, like today also there was a price increase of nearly 80, 90 paise.

Sir, how do you see this? When would be a situation where, say, in a case where ₹3, ₹4 is increased further during the next 3 months, how are we looking at margins at the gross and EBITDA level to pan out?

Would we be able to maintain this fourth quarter run rate, or can it come under some pressure? Any thoughts on that?

There will be some temporarily disconnect or some variance will be there. Definitely on a full-quarter basis, we are planning to maintain the similar EBITDA numbers.

The reason is, say, for example, now because of the disturbance in the bulk diesel supply or through refinery, we have already tweaked in some of the routes that wherever we are offering at a lower rates and all, or wherever there is a less competition, where actually we have already increased some of the rates. We have changed certain metrics also within the chargeable weight and all.

Say, for example, earlier we used to charge 1 cubic feet equal to 8 kg. Now for certain routes, we increased from 8 kg to 9 kg.

Straightaway the quantity will increase in such routes, and definitely it will take care of whatever additional cost. Similarly certain line items see, for the customers we are charging different expenses also, like one is the basic rate, then second thing we are adding some of the loading, unloading cost, some of the freight on value cost, some three, four additional items.

There also we are increasing certain metrics. For account customer or contractual customers, we are adding one line item in the contract the fuel surcharge.

That fuel surcharge, depending on the fuel rate, that will change. For example, today also if we increase certain rates, but minimum rate they will expect at least around ₹2 increase, ₹3 increase in certain contracts.

Based on that fuel surcharge will apply to the customers. Because of these steps, we are confident that we are going to maintain the EBITDA similar level.

There may be some basis points impact, but not in a big way.

Okay. Got it.

The price increase which has happened till now in diesel, around ₹4 or so, 3 plus the ₹1 today, that is not having any real impact because that is basically more or less passed on.

Yeah.

Got it. Sir, on tonnage terms, as you mentioned in your presentation also, some of the customers has come back, and basically what you had highlighted during the first half of the year has actually happened, where at the end of the quarter the loss in volumes have reduced and we have actually turned into the growth phase.

Now how confident are we of getting this 7%, 8% volume growth for '27, or could it be higher or lower? Any risk factor on either side of this, or would it largely be in the 7%, 8% based on what you are seeing?

No, the tonnage have been already constrained in the last year this current year as well as the last year because of some of the exercise what we have taken. Considering our service level, most of the customers are coming back.

Also we are adding the new customers. Say, for example, in Q4 year-on-year basis, our quantity around 17% of the quantity is contributed by the new customers.

Year-on-year, I am saying. The left customer share is around 14%.

Existing customer growth year-on-year is around 1%. On a total of all this, actually we are in a position to grow by around 3% in the volumes.

Apart from whatever the left customers are there, we are getting the new customers' quantity also better than them. There is a volume increase from the existing customers, so that is giving more confidence.

Moreover, even though if we achieve, 7% growth in the tonnage, that deficit is already there in the current current year. If we see on the full-year basis, that tonnage decline is 7%, and predominantly it is from the customers who are already know our services.

They're already experienced with the VRL. We are and because of this juncture of increase in the fuel rate, increase in the freight rate, again definitely they will come back to us.

That's what we are hoping. The major share will come from them also.

Oh, got it, sir. I think that's from my side.

Thank you.

Thanks. Thank you.

Thanks for the opportunity, sir. Just one question.

Sir, do you see any risk to the volume growth because of the Western DFC going live now? Some shifts might happen to the railway side.

Do you see any kind of risk to the volume growth? No,

DFC is directly related to the full truckload, the commodity what we are carrying is not directly linked with railway services. That's the reason the impact of DFC will not be much on our commodities or our quantities.

Okay. Thank you.

That's it from my side. Thank you.

Thanks.

Thank you once again to all the participants and your patient hearing. Yes, most of the questions related to about the recent trend in the fuel rates.

Considering our network, considering our customer base, and considering our service to the multiple commodities in the industry, we are hoping that definitely we can pass it on this cost to the customers and maintain the EBITDA margins in the range of around 20% plus going forward. With this, I wish to complete this call.

Thank you.