1. Opening Hook
When fuel prices fall, GST tweaks confuse everyone, and tonnage goes missing—only VRL keeps the wheels turning. The CFO basically told investors, “Volumes are down 11%, but don’t worry, we’ve optimized our way into happiness.” It’s the logistics version of losing weight by cutting carbs, not calories.
Still, there’s divine order in the chaos. As theGuru Granth Sahibsays,“By His Command, bodies are created; His Command cannot be described.”Perhaps tonnage follows the same cosmic rule.
Hang on—what’s “rationalization” really hiding? Keep reading, this convoy’s just warming up.
2. At a Glance
- Revenue – ₹804 Cr (Flat YoY):Flat is the new up, apparently.
- EBITDA – ₹158 Cr (↑17% YoY):Margins flexed like a gym bro in earnings season.
- PAT – ₹50 Cr (↑39% YoY):Profit drove fast while tonnage took a nap.
- Tonnage – ↓11% YoY:Light load, heavy optimism.
- Realization per Ton – ₹8,079 (↑11.6% YoY):Charging more to carry less—capitalism in motion.
- Fuel Cost – 25.6% of Sales (↓ from 28.6%):Bulk buying beats petrol pump tears.
- Own Fleet – 5,782 trucks:376 fewer vehicles, yet more profit. Magic or math?
- EBITDA Margin – 19%:CFO’s new favorite number.
3. Management’s Key Commentary
Sunil Nalavadi (CFO):“Despite volume decline, profitability improved due to rationalization.”(Translation: We ditched cheap customers and called it strategy.)😏
Nalavadi:“Fuel costs dropped from 28.6% to 25.6% due to refinery sourcing.”(Translation: The real hero is Bharat Petroleum, not balance sheet discipline.)
Nalavadi:“We rewarded our workforce with salary hikes.”(Translation: Trucks shrunk, salaries didn’t. Brave move.)
Nalavadi:“EBITDA margin of 19% is sustainable.”(Translation: Please stop asking if it’s luck.)
Nalavadi:“H2 volumes to grow 5–6%, Q4 to rise 7–8%.”(Translation: We’re manifesting growth, not projecting it.)
Nalavadi:“Capex of ₹160 Cr in H2—mostly for owned hubs.”(Translation:
Real estate is the new logistics play.)🚛
Nalavadi:“Q3 is always better due to festival demand.”(Translation: Diwali, not data, saves this quarter every year.)
4. Numbers Decoded
| Metric | Q2 FY26 | Q2 FY25 | Commentary |
|---|---|---|---|
| Total Income | ₹804 Cr | ₹802 Cr | Flat—growth deferred to next highway |
| EBITDA | ₹158 Cr | ₹136 Cr | +17% YoY; cost control masterclass |
| EBITDA Margin | 19.6% | 16.9% | Optimization triumph |
| PAT | ₹50 Cr | ₹36 Cr | +39%; profit per litre soaring |
| Tonnage Decline | -11% YoY | — | Dropping weight for fitness |
| Realization per Ton | ₹8,079 | ₹7,241 | 12% jump—rate rationalization win |
| Own Fleet | 5,782 | 6,158 | Leaner, meaner fleet |
| Fuel Cost (% of Income) | 25.6% | 28.6% | Procurement wizardry |
| Lorry Hire Cost | 4.4% | 5.7% | Better route utilization |
| Employee Cost (% of Income) | 18.3% | 16.9% | Hikes parked in August |
| Net Debt | ₹304 Cr | ₹396 Cr | Less debt, more discipline |
| ROCE | 18% | 14% | Capital finally pulling its weight |
Summary:Revenue didn’t move, but profits sprinted. Volume fell, but efficiency ruled. VRL made austerity look profitable.
5. Analyst Questions
Q:“Volumes fell 11%. When’s the recovery?”A:“Q3 +5%, Q4 +7%.”(Translation: Depends if customers come back or not.)
Q:“Margins sustainable?”A:“Yes, 19% is here to stay.”(Translation: As long as diesel doesn’t flirt with ₹110.)
Q:“Capex plans?”A:“₹160 Cr—mostly for hubs.”(Translation: Fewer trucks, more
