Tiger Logistics (India) Limited (536264) Q3 FY2026 Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Tiger Logistics (India) Limited Q3 and 9 months FY '26 Earnings Conference Call hosted by Rik Capital. We have with us today from the management, Mr. Harpreet Singh Malhotra, Chief Managing Director of Tiger Logistics (India) Limited. [Operator Instructions] Please note that this conference is being recorded. Before we proceed with this call, I would like to take this opportunity to remind everyone about the disclaimer related to this conference call. Today's discussion may be forward-looking in nature based on management's current beliefs and expectations. It must be viewed in conjunction with the risks that our business faces that could cause our future results, performance or achievements to differ significantly from what may be expressed or implied by such forward-looking statements. I now hand the conference over to Mr. Harpreet Singh Malhotra sir for opening remarks. Thank you, and over to you, sir.

Thank you, ma'am. Thank you so much. Good evening, everybody. This is Harpreet Singh Malhotra. I'm the Managing Director of Tiger Logistics, and I welcome everybody to this investors call. I'm happy to talk to everybody today. I think the business results or the financial results for the quarter 3 are already in front of everybody. So I just wanted to brief you that we had a good quarter in terms of the development of new businesses. What we are seeing is that though it was quite a turbulent as far as the export business is concerned because of the U.S. tariffs and overall geopolitical situation, even because of the business constraints in the Gulf region. And overall, it was from the business -- from the EXIM business, it was not a very great year because of the geopolitical reason. But in spite of all these headwinds, we were able to do good volumes and the volume is up by 9% quarter-to-quarter and almost close to -- for year-on-year, if we have to look at the business volume, that is also up by close to 50% year-on-year. And we were -- this increase in volume primarily has been on our growth -- future growth engines, which we have adopted a few years back, which is firstly, working in the renewable sector, which is the TiGreen vertical for us, which is doing very well, especially in the renewable and the solar sector, and also deep selling in the import sector, which is now giving us good results. And of course, keep on continuing in the present old businesses of the company, which is in the auto sector and also in the government sector. So this -- I'm very happy that the overall volume of the company is growing quarter-to-quarter and year-on-year and which also establishes that the business is growing and the dependence on a particular sector or a particular vertical is also reducing. So we are now -- all our verticals are doing very well, and that is showing in the increase in the volumes in the TEUs business. There has been a small dip in the overall top line. That is primarily because ours is a cost-plus model and the freight in this quarter have been the lowest ever. So we had the lowest ever freight levels in last few years. So this quarter has been the lowest levels of freight. So our top line, which is the revenue, is a direct indicator of the -- whatever are the freights, which are prevailing in the market because as you know, that we all work on the cost-plus model, and that is what is reflecting in our total turnover for this quarter also. But I'm very happy that we are registering good growth in the volume numbers because the freight levels are keep on fluctuating, but what is important is our business penetration and our business growth, which is important. All businesses where we have ventured into in last few quarters and years are doing well, starting with TiGreen and also CUBOX. CUBOX is slightly -- it is taking time. We have almost completed 1 year. But whatever are the expected numbers, maybe we are slightly -- maybe we were more -- the expectations were more, but we are -- it is not on the same lines as we were expecting it to be. But still, it is -- the overall vertical is breaking even and giving some profits. But maybe as we move on because it is an LCL model, it will take some more time to develop and some more time to really catch on to the overall full container business. But yes, other sectors like TiGreen and old businesses of ours are doing very well. And I think we've had a good penetration in the reefer pharma sector also. That is from the up North region, where we had 6 months back, we had opened our big office in upper North region, covering the pharma sector of Punjab and Haryana and Himachal belt. So that has started giving us good numbers, and especially on the pharma sector. So we are exporting good numbers of containers today to various parts of the world in the pharma and chemical sector. And we expect that area to grow further. Moving on the renewable sector, I think our presence in the business is growing each day. And our -- today, we -- what we were a year back, today, we are a very formidable position today where we could be one of the top 5 service providers in the solar sector. I'm not talking of the total business as logistics, but in the solar sector logistics, yes, we could be in the top 5, top 7 service providers. So overall, our business is growing. We are hiring more people in this sector, in this vertical so that we get more specialized in our handling. So we are very bullish about the coming quarter where a lot of activities happening, especially when the solar companies are looking at a big CapEx in next 2 quarters and there will be a lot of plants and machinery, which they will be importing. So we are very bullish about handling logistics for them. And we've already catered for the required bench strength to handle that business. So I think overall, the business is looking set. Maybe with this U.S. trade lane, U.S. business getting settled, the tariff matter getting settled and other business factors are also now softer and so we can expect some tailwinds in coming quarters and expect the business to grow further. So I'm very happy about what we are doing, and I'm very happy as to what are the new businesses which we are targeting. And hopefully, we will continue on the growth path. I only pray that the freights get better so that everybody can see better turnovers and better revenues in coming quarters. So overall, business is good. God has been kind and we are doing well. The financial hygiene is also in place, and we are working very closely in receivables and working -- getting our payments in time. So yes, so we'll be glad to share more details in coming quarters. But as of now, things are looking good, and we look forward to good growth, good business in coming days. Thank you so much.

[Operator Instructions] The first question is from the line of [ Abhijit Rao from BP Capital ].

First of all, sir, congratulations on good set of numbers despite the current geopolitical issues, we have great results. So my question is on the revenue. I can say that the revenue is -- we have done good, but on the volume in the air freight, there is a slight decline. The cost-plus model is what you talked about, I understood, but I want to understand this air freight revenue volume decline effect of volume decline on the revenue, particularly...

Yes. So traditionally, we are not air freight company. We are a sea freight business company. Our focus, the product which we handle are all engineering, auto projects, solar panels, wind mills, all those big projects and engineering goods. But air freight is our -- I would say that is one of the products where we are not really solely dependent on our growth. That is more of a product where -- which is there in place so that it can complement our main sea freight business. Air freight business decline is primarily because of the tariff issues and Europe business going down and the tariff issues which are happening. So people were not buying especially the high fashion goods and garments and similar kind of products, which move primarily by air. So that was the reason for this decline in the air traffic. Few customers, which we used to export to the U.S., are not -- they did not export anything because of the tariff issues. So that has impacted the air freight business. But that is very, very negligible for us. So we are not really worried about that. And I'm very most -- I'm happy that, that will start again now. And I'm more happier that the tariff issues are settled and even the Europe is looking settled. So we are looking forward to some more business.

Understood, sir. And sir, on the green portfolio side, our TiGreen vertical and the recent hydrogen MOU with Russia. So how do you see these 2 streams evolving? Like what is the role...

TiGreen is doing very well for us. We are very bullish. The volumes are growing continuously. It is contributing more than 40% to our total revenue, and we expect it to grow much further. On the -- so we have big plans for the TiGreen product because under that verticular, we are doing all solar logistics. On the hydrogen, we are not doing much in that. We are going slow because that involves huge CapEx. The market is still evolving. It is very -- it is not mature at all. So we are still evaluating the market, and we are going slow on that product. And also, since we don't want to work thinly on various things. So because solar is doing good for us, we want to focus on that. Auto is doing good for us. Our old conventional businesses are doing well for us. So we want to focus on that and reach a more respectable numbers and more numbers where we are in the top 5, top 3 category and then focus is on new business. So that is our policy, and that's what we're going to do.

Okay, sir. So -- understood. So TiGreen is our major, concentration will be on the solar and renewable on the TiGreen and hydrogen is what we are exploring and making...

Yes, it is on the exploratory mode, so we are holding on to that. We are not investing any big money in that.

Okay, sir. And sir, on this stock price, recent -- the changes in the stock price due to this geopolitical issues and revenues, what is your view on the future of the -- on this line?

I have no control over the stock price. That is totally...

No, no, sir, I want to understand just that what particular road milestones we have to -- we can track on the Tiger so that we can...

So if you see the biggest milestone is that year-on-year, the volume is growing by 52%, which is the biggest milestone. And from last quarter to this quarter, the volume has grown from by 9%. That is also in the times where there has been overall a very sluggish international business. So that is the biggest milestone. And what is very important is that the -- wherever -- whatever are our -- which were our future growth engines in the past 2 years, they have been very well established and very well set, and now they are giving good revenue numbers. So I think we need to work more closely in these sectors, deep sell in these and then move on to the next one. So I don't want to just pick up any verticular -- any particular vertical and start focusing on that and not achieving any pole-bearing numbers on the other verticals. So from our side, we are doing well. So the milestones, which I mentioned, volume is a critical one. Our penetration in the solar industry is another one. That is what is important for us.

[Operator Instructions] The next question is from the line of [ Anshu Ojha ] from -- an Individual Investor.

My question is CUBOX. So how does the LCL model help you build a more repeat stable customer base compared to FCL?

CUBOX, as I had mentioned in my opening remarks, is now an year old product. We have broken even in that. Though we are not making any big money, that is a market, sometimes it takes time. That is more to -- it is a B2B business where we are catering to small, medium-sized freight forwarding and logistics company. So that model is there. The idea is to have all products in our kitty. So that is one of the products. But yes, we are -- we've always been a full container load company, and we always have dealt in with B2C, business-to-client business model. But this is something where we wanted to always have because you must have all products in your kitty. So that was the reason to start this. And we are happy. We are gaining traction each day, and we are happy that in coming days, this will also start making good money.

Okay. And sir, second one is, sir, on profitability. Should we think on LCL as a higher margin business? Or is it similar to your blended margins in the near term?

LCL, as we move forward, could have better margins. But as of now, I think our -- my bet would always be on full container FCL business only.

[Operator Instructions] The next question is from the line of [indiscernible] from [indiscernible] Private Limited.

Can you just give me guidance? Is there any strategically, you're looking more to grow vertical or just the organically only at this point in time?

No, we are very open. Thanks for -- it's a good question. We are open to any inorganic acquisition, which we have go through that inorganic way also. But unfortunately, we've not been able to get any good company.

Candidates.

We were very keen -- sorry?

Good candidates, you mean to say, acquisition side?

No, no, good companies to acquire, not -- yes. So whenever you are -- we are looking to acquire a good small or a medium-sized logistics company, we are -- we want them to grow along with us. But we are -- we've not been able to find any good asset, which we can say that, okay, yes. But we are open to it.

But is that you're looking only domestically now or the same sector? Or do you want to -- the other verticals also of the logistics side?

No, we are only looking at somebody who is in the international logistics. We are -- we ourselves are not present in the domestic, and we don't want to get into domestic logistics, so we are looking at only at companies who are doing international freight forwarding or logistics.

[Operator Instructions] As there are no further questions from the participants, with that, I now hand the conference over to Mr. Harpreet Singh Malhotra for closing comments.

Okay. Thank you so much. And it was nice talking to everybody. As I mentioned, that the coming quarters are looking very bullish for business. And I thank everybody for having trust and faith in us. And I'm sure in coming days, the company will be registering good growth because we are moving on a very steady growth path, and we hope that everybody will see that and experience it. Thank you so much for joining in. Thanks.

Thank you. On behalf of Tiger Logistics (India) Limited, I conclude this conference. Thank you for joining us, and you may now disconnect your lines.