The Indian road logistics sector is projected to witness an 8-10% revenue growth in FY2027, primarily supported by increased freight rates. While continued infrastructure spending and increasing e-commerce penetration shall support the growth The impact of weak monsoon, potential El Nino conditions and increase in interest rates in H2 could be critical monitorables. Ongoing formalisation and market share gains by organised players are likely to support industry growth.

• ICRA’s sample set for the logistics industry clocked a revenue growth of 16.8% YoY in Q1 FY2027, driven by increased freight rates and supported by freight demand across key end-user sectors. Growth was aided by improving consumer demand, supported by tax cuts, interest rate reductions and GST rationalisation measures.
• ICRA’s sample set’s revenue growth is estimated to grow by 8-10% in FY2027, as against 11% in FY2026. There has been a strong growth in Q1 FY2027 supported by favourable demand and better freight rates.