VRL Logistics shares soar 20% as Q3 profit jumps 335% YoY, margins expand

VRL Logistics share: The sharp upmove in VRL Logistics share price came after the company released its Q3 results after market hours on February 5, 2025

VRL Logistics shares defied the overall weak sentiment in the stock markets today, February 6, as they surged 20 per cent on the BSE in Thursday's intraday trade. The sharp upmove in VRL Logistics share price came after the company released its Q3 results after market hours on February 5, 2025.

 

At 11:55 AM, VRL Logistics share price was quoting 15.4 per cent higher at Rs 538 per share on the BSE as against a 0.36-per cent dip in the benchmark BSE Sensex index. It was also the top gainer on the BSE SmallCap index. It hit an intraday high of Rs 559.5 per share.

 

Around 73,000 shares have changed hands on the VRL Logistics' counter on the exchange, as against a two-week average quantity of 4,632 shares.

VRL Logistics Q3 results

For the quarter ended December 31, 2024, VRL Logistics reported total revenue of Rs 830.9 crore, up 4 per cent quarter-on-quarter (Q-o-Q) and 12 per cent year-on-year (Y-o-Y). Of this, revenue from operation was Rs 825.22 crore, up 12 per cent Y-o-Y from Rs 736.67 crore and 3 per cent Q-o-Q from Rs 799.48 crore.

 

VRL Logistics' Q3 Ebitda (earnings before interest, tax, depreciation, and amortisation) stood at Rs 172.09 crore, clocking a growth of 78 per cent Y-o-Y from an Ebitda of Rs 96.75 crore seen in Q3FY24. On a sequential basis, Q3 Ebitda rose 27 per cent from Rs 135.53 crore.

 

VRL Logistics' Q3 Ebitda margin expanded to 21 per cent in Q3FY25 vs 13 per cent in Q3FY24 and 17 per cent in Q2FY25.

Its Ebit soared a mammoth 169 per cent Y-o-Y and 50 per cent Q-o-Q to Rs 107.53 crore. Ebit margin expanded to 13 per cent from 5 per cent Y-o-Y and 9 per cent Q-o-Q.

 

"Margins climbed on the back of effective implementation of freight hikes which were implemented across all sectors and geographies leading to increase in realisation. VRL Logistics also Optimised its routes, thereby minimising movement through multiple transhipment hubs across major routes, leading to reduction in frequent Loading and Unloading of consignments," VRL Logistics said in its Q3 results statement.

 

Increase in Bulk Purchase of fuel with lesser costs, resulted into reduction of fuel cost by 4 per cent Y-o-Y, it added.

 

Further, VRL Logistics reported Q3 net profit of Rs 59.42 crore, up a staggering 335 per cent Y-o-Y from Rs 13.65 crore earned last year. Sequentially, profit jumped 66 per cent from Rs 35.82 crore.

 

VRL Logistics incurred capital expenditure (capex) of Rs 276.05 crore, including the purchase of property in Bengaluru, Mysuru, and Mangaluru.

 

According to analysts, increased per-capita income is expected to boost consumption, raising the demand for logistics and transportation services. With goods and services tax (GST) coming into play, participants are preferring centralised warehouses and, hence, needing more transportation.

 

"India's trucking industry is crucial to the nation's logistics sector, accounting for over 70 per cent freight movement. With around 12.5 million trucks and 3.5 million truck operators as of FY24, the total freight value through trucks has grown at 8-9 per cent FY20-24 CAGR to reach $170-175 billion. With a growing Indian economy becoming incrementally interlinked, growth trends in road logistics are expected to continue," said analysts at JM Financial in a report.

 

With a track record of over four decades, VRL Logistics has increased its size and scale of operations and operates on a pan India basis. It has a wide network of branches and franchisees.

 

The company is also one of the largest fleet owners of commercial vehicles in the country and enabling it to set unparalleled standards in the movement of less than truckload (LTL) cargo in India in terms of service levels and safety of consignments.

 

At the end of December 2024, VRL Logistics had 6,101 owned vehicles, 1,248 branches, 50 transhipment hubs, and a customer base of over 0.9 million.

 

On the bourses, VRL Logistics share price hit a record high of Rs 798.4 per share on December 19, 2023. It's 52-week high stands at Rs 699.35 per share, touched on February 7, 2024, on the BSE. It's 52-week low is Rs 432.45 per share, touched on January 28, 2025.