Synopsis:
A leading logistics operator with a vast nationwide presence, strong LTL dominance, and diversified clients is poised for growth. Despite modest revenue gains, profit surged on efficiency. Conservative expansion, GST cuts, and robust service standards position it well for sustained long-term performance.
India’s logistics solution provider sector is valued at $228.4 billion in 2024, projected to hit $357.3 billion by 2030 with a 7.7 percent CAGR. It employs over 22 million people and benefits from rising e-commerce and government initiatives like PM GatiShakti, modernising infrastructure for efficiency and global competitiveness.
With a market capitalization of Rs 4,875.49 crore, the shares of VRL Logistics Ltd were trading at Rs 278.80 per share, increasing around 2.63 percent as compared to the previous closing price of Rs 271.65 apiece.
Stock Recommendations
Motilal Oswal, one of the well-known brokerages in India, reiterated its ‘Buy’ recommendation on the logistics stock with a target price of Rs 350 apiece, indicating a potential upside of 25 percent from Friday’s price of Rs 279.90 per share.
The brokerage noted that recent GST cuts are likely to aid consumption and support volumes for logistics firms like VRL. However, it expects the company to remain focused on sustaining strong margins, even as overall volume growth faces some pressure in the near term.
VRL stands as one of India’s largest commercial fleet operators with 5,949 trucks and 80,722 tons of capacity as of June 2025. The company aims to expand its fleet in sync with rising demand but remains cautious, planning capex conservatively if volume growth underperforms, ensuring financial prudence while aligning expansion with market conditions.
Motilal Oswal sees the company well-placed for long-term growth, driven by profitable contracts, efficiency, and reliable services. Investments in technology and a strong hub-to-hub network provide scalability. Despite near-term headwinds, GST cuts, stable pricing, and disciplined expansion should support growth, with FY25–27 revenue, EBITDA, and PAT expected to grow at 6 percent, 10 percent, and 19 percent CAGR, respectively.
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The company posted modest revenue growth of 2.3 percent in Q1FY26 at Rs 744 crore but delivered a sharp 284 percent surge in net profit to Rs 50 crore. The strong earnings reflect improved operational efficiency and margin gains, highlighting effective cost management and enhanced profitability despite a relatively flat revenue trajectory.
VRL Logistics demonstrates a strong nationwide presence with operations across 24 states and 5 union territories, supported by 1,241 branches and 50 hubs. With 88% revenue from the LTL segment. Strategically owned hubs in key cities reinforce its leadership in B2B logistics and geographical expansion.
VRL Logistics has a well-diversified customer base across sectors like textiles, agriculture, FMCG, pharma, and automotive, with no single client contributing over 1% of revenue. It ensures reliable service through storage facilities, hassle-free claims, and minimal bad debts, while offering unique solutions such as in-house designed cages for two-wheeler transport, reinforcing operational resilience and customer trust.
VRL Logistics is a premier company in India’s Surface Logistics industry, specializing in less-than-truck-load (LTL) business and goods transportation. The company’s core mission is to provide the highest quality service to customers by continuously improving service quality and meeting delivery deadlines.
Written by Abhishek Singh
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