VRL Logistics Ltd. share price target

VRL’s 1QFY27 revenue grew 18% YoY to INR8.8b (11% above est.). EBITDA rose 23% YoY to INR1.87b (21% above est.). EBITDA margin stood at 21.2% (+80bp YoY and +40bp QoQ) vs. our est. of 19.5%.

VRL Logistics’ (VRL) revenue was flat YoY at INR8.3b (+4% QoQ), in line with our estimate. EBITDA margins stood at 20.6% (+40bp YoY and +160bp QoQ) vs our estimate of 18.9%.

VRL Logistics (VRL)’s Q2FY26 EBITDA was slightly ahead of Street’s estimate. Realisation/te improved 12.8% YoY to INR 7,166, while EBITDA/te has improved to INR 1,548 (INR 1,216 in Q2FY25).

VRL’s revenue was flat YoY at INR8.0b (+7% QoQ) in 2QFY26, in line with our estimate. Volume dipped 11% YoY to 0.97m tons, while realization grew by 12% YoY to INR 8,079/ton, driven by a price hike.

VRL Logistics’ (VRLL) management implemented a price hike of 8-10% in Jun’24, which was rolled out across customer segments.

VRL Logistics (VRL)’s revenue grew 2% YoY to ~INR7.4b (-8% QoQ), in line with our estimate. Volume dipped 13% YoY to 0.93m tonnes, while realization improved 17% YoY to INR7,852/tonne, driven by price hikes.

VRL Logistics’ (VRL) Q3FY25 EBITDA performance was 26%/23% ahead of our and consensus’ numbers. Realisation (up 10% YoY) led improvement in both EBITDA and EBITDA margin, volume grew 1% YoY/QoQ (9MFY25: 4% YoY).

VRLL initiated a price hike of 10% in Jun’24 (blended hike of 6% implemented after negotiations). This would help to offset the cost increases caused by toll, labor charges, etc.

VRL Logistics’ (VRL) Q1FY25 EBITDA was 14.4% and 17.5% below our and consensus estimates, respectively. Shipments rose 6.8% YoY (below expected) on manpower unavailability.

VRLL’s Q1FY25 results were impacted by execution challenges faced due to unfavorable externalities such as driver shortage due to general elections.

VRL Logistics (VRL)’s 1QFY25 revenue grew 8% YoY (-5% QoQ) to ~INR7.3b (in line). Volumes increased 7% YoY to 1.07m tons in 1QFY25.

Tonnage growth in FY24 was hit by a slowdown in agro and textile commodity
volume in southern states, which contribute ~40% to tonnage. Amid general
elections in 1QFY25 and a severe driver shortage, tonnage growth is expected
to be subdued.

VRL Logistics’ (VRL) Q4FY24 EBITDA was 12.4%/7.8% ahead of our/consensus estimates. Key points: 1) Shipments grew 9.6% YoY (better than expected).

VRL Logistics (VRL)’s 4QFY24 revenue grew 10% YoY/4% QoQ to ~INR7.7b (in
line with our estimate). Volumes increased ~10% YoY to 1.13m tons in
4QFY24.

VRL Logistics’ (VRL) Q1FY24 performance missed our and street estimates by 3% and 8% respectively owing to lower volumes. Key takeaways: i) one-off factors impacted volumes by 4%; 2) realisation stayed flat QoQ as the company kept its pricing strategy unchanged; 3) capex in Q1FY24 was at INR 870mn, mainly due to addition of new vehicles; 4) fuel sourcing from refineries increased resulting in cost advantage.

VRL Logistics’ (VRL) Q4FY23 performance was in line with our estimates. Key takeaways: i) EBITDA margin of GT segment expanded 30bps QoQ to 16%; ii) volume rose 16% YoY (2.2% QoQ) at 1,031kte; 3) added 57 new branches in Q4FY23; 4) net debt rose Rs381mn YoY owing to buyback of shares amounting to Rs613mn in Q4FY23.