Summary
Patel Integrated Logistics Limited - Q3 FY 2026 Earnings Call Summary Thursday, February 13, 2026 4:00 PM
Event Participants
Executives 2 Avinash Paul Raj (Company Secretary), Mahesh Fogla (Executive Director)
Analysts 4 Jenisha (Individual Investor), Jimith Mehta (Individual Investor), Shivani Mehta (Individual Investor), Shlok (Individual Investor)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Operational Income | ₹88 crores | -5.4% QoQ; impacted by aircraft disruptions at IndiGo and post-festive international slowdown. |
| Total Cargo Volume | 14,339 tons | -6.9% QoQ; Domestic at 12,270 tons (-7% QoQ) and International at 2,069 tons (-6% QoQ). |
| EBITDA | ₹2 crores | 2.49% margin; reflects cost-conscious approach despite lower volumes. |
| PAT | ₹3 crores | +12% YoY; includes interest income from tax refunds and benefits of being net debt-free. |
| Blended Realization | ₹59.82 per kg | +1.8% QoQ increase from ₹58.75; reflects disciplined pricing and value-driven approach. |
| 9M FY26 Revenue | ₹251 crores | Marginal decline from ₹256 crores in 9M FY25; volumes totaled 43,050 tons. |
| Cash Balance | >₹10 crores | Management noted a comfortable liquidity position with unutilized working capital limits. |
Geographic & Segment Commentary
- Domestic Cargo: This segment handled 12,270 tons in Q3, down 7% QoQ due to a week-long aircraft disruption at IndiGo in December 2025. Management emphasized that demand remains strong via e-commerce and manufacturing, with new tie-ups like Star Air (Mumbai-Hyderabad) beginning in Feb 2026 to diversify away from IndiGo’s dominance.
- International Cargo: Volume reached 2,069 tons, a 6% QoQ decline attributed to the typical seasonal slowdown following the peak festive period. Management noted this segment requires low working capital compared to domestic operations, and they are looking to expand international services beyond Mumbai to other Indian metros.
Company-Specific & Strategic Commentary
- Rajpat Logistics Subsidiary: Incorporated on Nov 27, 2025 (60% ownership) to re-enter road logistics via an asset-light model. The entity began sample operations in Jan 2026 and aims for meaningful revenue contribution within a few quarters by partnering with large corporate clients.
- Employee Incentives: The company introduced a Restricted Stock Unit (RSU) structure, similar to ESOPs, to foster ownership and improve talent retention. This initiative is currently pending shareholder approval.
- Asset Monetization & ROI Focus: Development of a Mumbai property via cluster redevelopment is in active negotiation. Meanwhile, a planned Pune project is on hold as the company prioritizes asset-light opportunities with higher ROI over asset-heavy warehousing.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Tonnage Growth | Positive Trajectory | Expected recovery in Q4 FY26 as IndiGo disruptions were a one-time event and new airline partnerships commence. |
| Business Operations | Regional Expansion | Anticipated boost from the stabilization of Navi Mumbai Airport and the upcoming Jewar Airport (Noida). |
| Profitability | Sustainable Margins | Management expects to maintain current PAT margins due to net debt-free status and interest income. |
Risks & Constraints
| Risk | Context |
|---|---|
| Concentration Risk | High reliance on IndiGo Airlines’ passenger aircraft fleet for cargo; disruptions in their schedule directly impact company volumes. |
| Regulatory/Taxation | Fuel (ATF) and Diesel remain outside the GST ambit, carrying varying VAT rates across states which prevents full logistics efficiency. |
| Execution Risk | Re-entry into road logistics via Rajpat Logistics after a 6-year hiatus requires stabilization and a new partner network. |
Q&A Highlights
Domestic Volume Decline
- Question: Beyond the IndiGo disruption, are there structural demand issues? (Jenisha)
- Answer: There is no slowdown in demand; India’s e-commerce and manufacturing sectors are growing. The decline was strictly a one-time operational issue with IndiGo aircraft availability in December (Mahesh Fogla).
Diversification from IndiGo
- Question: Is there too much concentration on IndiGo given their recent disruptions? (Shlok)
- Answer: IndiGo has a dominant market share in India, but the company also partners with Air India, Akasa, and SpiceJet. A new partnership with Star Air starting Feb 2026 will further diversify the network (Mahesh Fogla).
Asset-Light Strategy
- Question: Why is warehousing a small share of revenue and what is the target? (Shivani Mehta)
- Answer: Warehousing is often asset-heavy with low ROI. The company is an ROI-driven entity and prefers asset-light models that don’t involve owning trucks or heavy infrastructure (Mahesh Fogla).
Working Capital & Liquidity
- Question: What is the current working capital situation? (Vikram Suryavanshi)
- Answer: Working capital is the most comfortable it has been in six years. The company is not even utilizing its bank limits and maintains over ₹10 crores in cash (Mahesh Fogla).
Key Takeaway
Patel Integrated Logistics reported a resilient Q3 FY26 despite operational hurdles, with PAT growing 12% YoY to ₹3 crores on revenues of ₹88 crores. Performance was temporarily dampened by a 7% QoQ dip in domestic volumes caused by aircraft disruptions at a major airline partner, yet blended realizations remained firm at ₹59.82/kg. Strategically, the company is pivoting back to road logistics through its new 60% subsidiary, Rajpat Logistics, under a strictly asset-light model. Management remains focused on high-ROI activities, evidenced by the decision to pause asset-heavy warehousing projects in favor of expanding air cargo reach via new partnerships like Star Air and potential expansions in other metros. Looking ahead, the company is well-positioned to benefit from India’s growing aviation infrastructure, including the Navi Mumbai and Jewar airports, while maintaining a net debt-free balance sheet.
Want more insights like this?
Subscribe to get deep dives delivered to your inbox.
More Earnings Summaries
Explore more Q3 FY26 earnings call analyses: