S J Logistics Navigates Growth with Strong Q2 and H1 FY26 Performance

S J Logistics (India) Limited, a Mumbai-based logistics and supply chain solutions provider, has reported a robust financial performance for the second quarter and half-year ended September 30, 2025. The company's consolidated revenue for Q2 FY26 surged by 26.5% year-on-year to 157.1 crore. This strong top-line growth was accompanied by an impressive 61.4% increase in EBITDA, reaching 28.4 crore, and a 42.5% rise in Profit After Tax (PAT) to 18.1 crore. The EBITDA margin expanded by 391 basis points to 18.1%, underscoring the resilience of the company's business model, improved network efficiency, and effective cost control.

The positive momentum continued into the first half of FY26, with consolidated revenue growing by 25.8% to 282.9 crore. EBITDA for H1 FY26 increased by 59.6% to 50.6 crore, with margins expanding by 379 basis points to 17.9%. PAT for the half-year stood at 32.4 crore, marking a 38.1% year-on-year growth. This consistent performance across both quarters highlights the strength of S J Logistics' diversified business model and the effectiveness of its execution framework.

Segmental Performance: NVOCC Leads the Charge

The growth in the first half of FY26 was broad-based across all service lines, with the NVOCC division emerging as a phenomenal performer. NVOCC revenue witnessed an exceptional growth of over 1,400%, rising from 2.09 crore in H1 FY25 to 31.93 crore in H1 FY26. This remarkable expansion validates the company's strategic move into this high-margin vertical and its success in deepening its presence across global trade corridors, particularly in the Middle East, Red Sea, Mediterranean, African, Libya, Turkey, and Russian sectors.

Ocean Cargo remained the largest contributor to the company's revenue, generating 243.5 crore in H1 FY26, a 12.8% increase from the previous year. Within Ocean Cargo, ODC, tyre, and project cargo were key drivers, contributing 126.6 crore, supported by a strong 40% growth. Yarn and yarn commodities delivered 106.62 crore, while other commodities contributed 10.26 crore. The Air Cargo division also registered healthy growth, with revenues of 7.49 crore in H1 FY26, up from 6.43 crore in H1 FY25, marking a steady 16% year-on-year increase.

H1 FY26 Consolidated Financial Summary (INR Crore)

Strategic Forward Integration and Expansion

A defining milestone for S J Logistics has been the commencement of its direct vessel operations under S J Logisol Shipping L.L.C, Dubai, with the launch of the 'Suez Express Service'. This initiative, which began operations in early November 2025 (Q3 FY26), represents a significant forward integration. The service connects key regions like Jebel Ali, Kandla, Jeddah, and Alexandria, bridging vital trade corridors between the Gulf, India, Africa, and the Red Sea. This move enhances the company's control over service schedules, routing, and space management, strengthening its position as an integrated global logistics solutions provider. The company aims to have four vessels in operation by the end of December 2025, with management projecting this vertical to contribute 30% to 40% of the total top line next year.

Furthermore, S J Logistics is expanding its warehousing and infrastructure footprint. To meet the rising demand for rapid delivery and local storage, the company plans to acquire rights over large, multi-user warehouses in key logistics hubs across India. It has already secured a lease agreement for a warehouse in Bhiwandi, Thane, spanning approximately 38,910 sq. ft., to support efficient inventory management and transit operations.

Management Outlook and Future Trajectory

Mr. Rajen Hasmukhlal Shah, Chairman & Managing Director, expressed satisfaction with the strong performance, attributing it to operational excellence, disciplined execution, and strategic service diversification. He highlighted the company's ability to leverage evolving trade dynamics, optimize asset utilization, and deliver superior value through technology-led logistics solutions. For the entire FY26, management is targeting a top-line growth of around 35% and a PAT margin between 12% and 12.5%. For FY27, they anticipate another 35% to 40% growth.

While the company operates on an asset-light model, which provides operational agility and protects against heavy fixed cost burdens, the increased working capital intensity due to vessel chartering security deposits and future operational needs is a point of focus. However, the management is proactively addressing this by engaging with bankers for additional working capital facilities. The company's diversified business model and strategic focus on high-potential trade lanes, particularly in the Middle East and Mediterranean, are expected to buffer against global market softness.

S J Logistics remains committed to scaling its multi-modal capabilities, expanding geographically, and investing in technology-driven efficiency to support margin improvement and service differentiation. With a balanced profile, strong financial discipline, and a growing global presence, the company is confident in sustaining its momentum and creating long-term value for its stakeholders.