Synopsis: A recently listed logistics company has come into focus after renowned investor Vijay Kedia acquired a stake through a preferential allotment. The company reported explosive FY26 growth, with revenue tripling to Rs.258 crore and net profit rising to Rs.15 crore. While strong capital efficiency and expanding warehousing operations support the growth story, rising debt, negative operating cash flow, and SME liquidity risks remain key factors investors should monitor.
Introduction
A little-known logistics company has quietly attracted market attention after veteran investor Vijay Kedia acquired a stake through both his personal portfolio and investment vehicle. The investment comes at a time when the company is reporting exceptionally strong growth and rapidly scaling its warehousing and supply-chain operations.
Operating in the asset-heavy logistics and warehousing space, the company provides storage, transportation, third-party logistics, rail-rake handling, and supply-chain management services across multiple industries. Its rapid expansion over the past two years has transformed it from a small regional operator into a fast-growing logistics player.
Expanding Logistics Footprint Supports Growth
Iware Supplychain Services Limited Founded in 2018, the company has built a pan-India logistics network focused on warehousing and integrated supply-chain solutions. It currently operates approximately 8 lakh square feet of warehousing capacity spread across eleven facilities in seven states.
Its customer base spans industries such as FMCG, auto components, sanitation products, and industrial goods. The business model requires continuous investments in warehouses, vehicles, and working capital, making execution and capital allocation critical factors for sustained growth.
The company’s rapid expansion indicates increasing demand for organized logistics infrastructure, a segment expected to benefit from supply-chain modernization and rising warehousing requirements across India.
Revenue Growth Surges as Business Scales Rapidly
Iware Supplychain Services financial performance over the last five years highlights a dramatic expansion phase. Revenue increased from Rs.19 crore in FY21 to Rs.258 crore in FY26 revenue growth of 1,258 %, translating into a five-year CAGR of approximately 69%.
EBITDA grew from Rs.2 crore to Rs.29 crore during the same period, while net profit rose from nearly Rs.1 crore to Rs.15 crore. The most striking jump came in FY26, when revenue surged from Rs.86 crore in FY25 to Rs.258 crore, effectively tripling within a single year.
While the growth trajectory appears impressive, investors should note that a large portion of the CAGR is influenced by a relatively small base and a significant acceleration in the latest financial year.
Veteran Investor’s Entry Draws Market Attention
One of the biggest recent developments is Vijay Kedia’s investment in the Iware Supplychain Services Limited . Rather than purchasing shares from the secondary market, Kedia participated through a preferential allotment. The company proposed issuing around 7.9 lakh new shares at approximately Rs.254 per share, raising close to Rs.20 crore. Kedia acquired a combined stake of roughly 6% through his personal holdings and Kedia Securities Pvt. Ltd.
The investment has generated considerable investor interest, given Kedia’s long-standing reputation for identifying emerging businesses during their early growth stages.
Cash Flow and Debt Remain Key Monitorables
Despite strong reported earnings, Iware Supplychain Services cash generation profile presents a more nuanced picture. Operating margins declined from around 20% in FY25 to nearly 11% in FY26 as the business scaled rapidly.
More importantly, operating cash flow turned negative during FY26, while free cash flow also remained under pressure due to investments in warehouses, vehicles, and working capital. Total borrowings increased from around Rs.30 crore in FY25 to nearly Rs.70 crore in FY26, while debtor balances also expanded significantly.
Although such trends are not uncommon during high-growth phases, investors will likely focus on whether accounting profits begin translating into stronger cash generation over the coming quarters.
Valuation and Market Performance
Since listing on the NSE SME platform in May 2025, the stock has delivered extraordinary returns. Shares moved from the Listing price of Rs. 81 to nearly Rs. 365 within about a year, translating into gains of more than 350%.
Iware Supplychain Services currently trades at around 26 times earnings, broadly in line with the industry median. However, given its limited listing history, investors have little long-term valuation data to benchmark against.
Outlook
Iware Supplychain Services offers a compelling combination of rapid revenue growth, improving scale, expanding logistics infrastructure, and endorsement from a respected investor. However, the investment case is not without risks. Rising leverage, weaker cash-flow conversion, margin compression, and the inherent liquidity challenges associated with SME-listed stocks remain important considerations.
The key question for investors is whether the company can convert its explosive top-line growth into sustainable cash generation while maintaining profitability. If execution remains strong, the recent expansion phase could mark the beginning of a much larger growth journey.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
