Snowman Logistics Navigates Q2 FY26 with Strategic Growth and Operational Adjustments

Snowman Logistics Limited, a prominent player in India's cold chain logistics sector, has released its financial results for the second quarter and first half of fiscal year 2026. The company reported a continued positive growth trajectory, with Q2 revenue reaching ₹155.7 crore, marking a 9% year-on-year increase. For the first half of FY26, total income stood at ₹319.7 crore, reflecting a 12% growth compared to the previous year. Despite top-line expansion, the quarter saw a dip in profitability, with EBITDA at ₹20.6 crore (down 11% YoY) and a net loss of ₹2.9 crore. This performance underscores the company's strategic investments in infrastructure and integrated logistics solutions, even as it navigates operational challenges.

The segment-wise performance reveals a mixed but generally positive picture. The warehousing services segment demonstrated robust growth, increasing by 9.6% year-on-year. The trading and distribution vertical emerged as a strong performer, registering an impressive 20.6% growth. This indicates healthy demand and effective execution in Snowman's core cold storage and distribution offerings. Conversely, the transportation segment experienced a temporary decline of 10.8% year-on-year. Management attributed this to a shift in customer mix, the phasing out of low-profitability vehicles, and the impact of GST changes. The company is actively working on realigning its transportation business model, focusing on fleet optimization and new customer acquisitions to drive recovery.

Snowman Logistics continues to reinforce its position as an industry leader through strategic expansions and technological advancements. The company added another temperature-controlled facility in Kundli, increasing its total capacity to 1,54,809 pallet positions across 44 warehouses in 21 cities. This expansion is a key part of its strategy to meet the growing demand from the organized sector and solidify its market leadership. Furthermore, Snowman is the first Indian cold chain company to introduce 5PL (Fifth Party Logistics) services. This innovative offering goes beyond traditional 3PL by encompassing inventory ownership, sourcing, procurement, distribution, and consolidation, positioning Snowman as a comprehensive supply chain partner.

Management highlighted several initiatives to address profitability concerns and drive future growth. In transportation, the company is replacing its aging fleet with new, mostly leased vehicles, aiming to improve utilization and reduce breakdowns. They are also focusing on increasing their exposure to ice cream brands, which is driving better revenue growth. For the domestic market, Snowman aims to achieve 1,000+ TEUs per month in the next two years, leveraging trade deals and the shift from road to rail. The company plans an annual capital expenditure of ₹100-150 crore, primarily for building two to three owned warehouses and expanding its fleet with EV and CNG vehicles.

Snowman Logistics is strategically navigating a dynamic market, balancing growth with operational efficiency. The company's focus on expanding its cold chain infrastructure, pioneering 5PL services, and optimizing its fleet demonstrates a clear vision for sustained leadership. Despite short-term pressures on margins and the transportation segment, management's proactive measures and positive outlook for the coming quarters suggest a resilient path forward, reinforcing investor confidence in its long-term growth trajectory.