1. At a Glance
Snowman Logistics Ltd is that friend who owns the biggest freezer in the colony but still complains about electricity bills. As of Q3 FY26, the company is sitting at a market cap of ₹717 crore, a stock price of ₹42.8, and a 3-month return of -8.5% (yes, investors are feeling the chill). Quarterly revenue clocked in at ₹143.7 crore, up 9% YoY, while quarterly PAT slipped to -₹3.75 crore, reminding us that cold storage is not cold cash.
Operating margins hover around 15%, debt stands at ₹326 crore, ROCE is a sleepy 4.25%, and ROE is barely alive at 1.33%. Capacity utilisation is strong at ~91%, but profits are clearly not attending the same party. Add to that a ₹4,000 million capex plan funded largely by debt, and you can already hear bankers rubbing their hands.
This is a business with scale, assets, and ambition—but also with thin patience from shareholders. Curious why? Keep reading.
2. Introduction
Snowman Logistics has been around since 1993, which means it has survived liberalisation, dot-com bubbles, global financial crises, COVID, and now… investor expectations. It operates India’s largest cold chain network with 44 warehouses across 21 cities, spread over 3+ million sq. ft. Sounds impressive—and it is.
The problem? Scale without profitability discipline is like buying an industrial freezer to store one ice-cream. Over the years, Snowman has grown revenues nicely (5-year sales CAGR ~18%), but profits have behaved like seasonal vegetables—unreliable and sometimes missing.
Q3 FY26 sums up the story well: revenue grew, EBITDA stayed decent, but depreciation and interest costs quietly ate away whatever was left for equity holders. This is the curse of asset-heavy logistics—when growth comes with concrete,
steel, compressors, and EMI schedules.
The company now wants to double down with more warehouses, more pallets, and more debt. The big question: will utilisation + pricing power finally outrun interest + depreciation? Or will Snowman remain perpetually “almost profitable”?
3. Business Model – WTF Do They Even Do?
Think of Snowman as the refrigerator behind India’s food economy.
They store:
- Ice cream that must not melt
- Meat that must not smell
- Vaccines that must not die
- Ready-to-cook food that must not go bad
They operate across three verticals:
1) Warehousing (41% of FY25 revenue)
Cold storage + dry storage under the brand SNOWPRESERVE. This is the backbone—large fixed assets, high utilisation, predictable but capital-intensive.
2) Transportation (26%)
Under SNOWLINE and SNOWREACH, Snowman runs temperature-controlled trucks with real-time tracking. This is where diesel prices and interest rates decide your mood.
3) Trading & Distribution (33%)
Basically 5PL services—Snowman sometimes owns inventory, manages sourcing, distribution, and consolidation. Higher revenue, lower margins, higher working capital stress.
It’s a solid, boring, essential business. But boring only works when margins are boringly consistent. Snowman’s margins? Emotional rollercoaster.
4. Financials Overview
Quarterly Performance Table (₹ crore)
| Metric | Latest Qtr (Q3 FY26) | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 143.72 | 131.85 | 155.65 | 9.0% | -7.7% |
| EBITDA | 22.78 | 19.76 | 19.99 | 15.3% | 14.0% |
| PAT | -1.87 | -0.61 | -2.91 | NA | NA |
| EPS (₹) | -0.11 | -0.04 | -0.17 | NA | NA |
