• ICRA’s sample set for the logistics industry clocked a revenue growth of 9.5% in FY2025. Following some disruption in business activities during Q1 amid the General Elections, the sector’s revenues were supported by recovery in second half of the year on the back of favourable monsoons aiding rural demand, a strong festive season, and the Government’s thrust on capital formation. 
• Industry is expected to clock 9-11% growth in FY2026 driven by stable economic activities, expected rise in consumer spending on the back of tax cuts, interest rate cuts, and GST rationalisation announced by the Government. The sector’s performance, however, will be vulnerable to the changing global trade environment, especially amid high US tariffs, given the likely impact on certain industries like apparels, seafoods, cut and polished diamonds, chemicals, etc.

Exhibit 1: Trend in operating performance and credit metrics - ICRA’s sample set

Source: Ace Equity, ICRA Research; OPM: Operating Margins. Considers aggregation of 10 listed logistics companies – Blue Dart Express Ltd., Gateway Distriparks Ltd., GATI Ltd., Mahindra Logistics Ltd., North Eastern Carrying Corporation Ltd., TCI Express Ltd., Tiger Logistics (India) Ltd., Transport Corporation Of India Ltd., VRL Logistics Ltd., and Ritco Logistics  Limited