CJ Darcl expects growth to continue, expands into new logistics verticals

IPO-bound CJ Darcl is expanding into a trucker marketplace, alternative fuels, EVs and warehousing as it looks to sustain its revenue growth momentum

IPO-bound CJ Darcl Logistics expects its revenue growth momentum to continue, after growing at around 10 per cent compound annual growth rate (CAGR) over the past few years, Nikhil Agarwal, president of CJ Darcl Logistics, said. 

 

The logistics firm, backed by South Korea's CJ Logistics Corporation, reported a consolidated revenue of ₹5,680.19 crore in the fiscal year 2026 (FY26), up 10 per cent year-on-year (YoY). The company's earnings before interest, taxes, depreciation, and amortisation (Ebitda) for the year were ₹273.24 crore, up marginally by 1.88 per cent YoY. Its net profit for FY26, however, declined by 6.87 per cent YoY, to ₹86.72 crore, according to the company's annual report for FY26. 

 

 

Agarwal attributed the expected continuation in momentum to India’s manufacturing growth, exports and industrial demand, along with government initiatives aimed at promoting industrial activity.

 

The company is currently building three key areas of business — a technology-enabled marketplace for small fleet operators, alternative fuels & electric vehicles (EVs), and warehousing and distribution.

 

CJ Darcl is preparing to launch a marketplace for small fleet operators that work with the company. The platform will provide truckers access to technology and multiple products through a one-stop solution, while allowing them to benefit from the company's purchasing scale.

 

“We believe this segment of truckers needs much better access to technology and multiple products through a one-stop solution,” Agarwal said.

 

The company caters to a pool of around 8-10 lakh truckers, with around 2-2.5 lakh new trucks getting engaged with it every year, he said. The marketplace will also provide accounting solutions, including a digital khata-book, to help truckers understand costs arising from idling, commissions and other factors.

 

The second focus area is sustainability, where CJ Darcl is working on alternative fuels and EVs. The company is talking to customers to identify applications where electric trucks can achieve high utilisation.

 

An electric vehicle is currently around three times more expensive than a 55-tonne diesel truck, which is the largest truck category in India, Agarwal said.

 

“The only way to make an electric truck financially viable is by sweating the asset and ensuring high utilisation,” he said.

 

The company plans to invest in EVs where customer contracts make the proposition financially viable. It is also working to develop alternative-fuel solutions.

 

The third area is warehousing and distribution. CJ Darcl currently operates around 2.78 million square feet of warehousing space across India, as of FY26. The business has grown at around 70-80 per cent annually over the past two to three years.

 

The company has also added e-commerce and quick-commerce warehousing and distribution to its portfolio and has already onboarded some clients.

 

CJ Darcl transported 22.42 million tonnes of cargo in FY25. Road remains its core business, while the company also operates rail and coastal logistics. It has been involved in rail multimodal container movements for nearly two decades and entered coastal logistics around 10 years ago.

 

On demand, Agarwal said metals and minerals have seen some slowdown, while FMCG has remained broadly at par. The company has also seen some slowdown in business volumes compared with the same period last year at certain customers.

 

“Last year, the production and sales of our clients were much higher,” he said, while adding that there could be multiple underlying reasons for the difference.

 

Higher crude prices have pushed up diesel prices, affecting logistics costs and freight rates. For CJ Darcl's contract logistics business, diesel costs are generally passed through to customers. However, higher shipping and freight rates can eventually affect industrial demand, Agarwal said.

 

On freight rates, he said the impact of higher diesel prices was already visible, particularly in long-haul segments. At the same time, rising commercial vehicle sales could add supply and potentially lead to some correction in freight rates. Such an impact typically takes one or two quarters to materialise, he said.

 

CJ Darcl is also scouting for inorganic growth opportunities, particularly in newer verticals such as warehousing. An acquisition could bring additional customers or a larger logistics footprint and create opportunities to add road and multimodal freight services.

 

On its proposed IPO, Agarwal said the company's DRHP has been filed and approved. The issue is subject to market conditions and the work of its bankers. CJ Logistics will not be a selling shareholder, he clarified.

 

CJ Logistics is supporting the Indian business in areas including warehousing, technology, AI and the trucker marketplace. It also helps bring global customers to CJ Darcl through its presence across 38 countries, Agarwal added.

 

He said infrastructure development, including the expansion of ports and rail terminals, and initiatives such as Gati Shakti have helped improve India's logistics ecosystem. Greater use of technology and data could further improve efficiency, while fragmentation across different logistics services continues to add to costs.