Tejas Cargo India Limited: Navigating Growth with Strategic Expansion and Tech-Driven Efficiency in H1 FY26

Tejas Cargo India Limited, a prominent player in India's full truckload (FTL) logistics sector, has reported a robust performance for the first half of fiscal year 2026 (H1 FY26). The company, headquartered in Faridabad, Haryana, showcased significant growth, with its total income climbing by 20% year-on-year to ₹306 crore. This impressive top-line expansion was complemented by a substantial 44% year-on-year surge in net profit, reaching ₹13 crore. The results underscore Tejas Cargo's strategic focus on strengthening operations, expanding its fleet, and leveraging technology to enhance efficiency and profitability in a dynamic market.

The company's operational prowess was evident in the completion of 55,972 trips during H1 FY26, alongside a notable 10% improvement in average revenue per trip. This growth was attributed to optimized route planning and a strategic client mix. Tejas Cargo's asset-heavy business model, supported by a fully owned fleet that now totals 1,231 vehicles, provides a strong foundation for operational control and service reliability. In H1 FY26 alone, the company strategically deployed 115 new vehicles, including trailers, MXL and SXL trucks, standard trucks, electric vehicles (EVs) for Amazon deliveries, and car carriers. This fleet expansion not only bolstered capacity but also facilitated entry into new, high-growth logistics verticals.

Strategic Diversification and Tech Integration

A significant driver of Tejas Cargo's progress has been its successful diversification into new logistics segments. The company has established a growing presence in sectors such as steel, cement, and mineral logistics, which are now contributing a sizeable share to its overall business. Notably, steel and cement segments collectively account for approximately 20% of the company's top line. Furthermore, Tejas Cargo has ventured into car carrier services, collaborating with subcontractors of major passenger car OEMs like TVS, Hyundai, and Toyota, with more partnerships in progress. The company has also initiated fly ash transportation for BSRTC and coal transportation from Central Coalfields Ltd.'s Magadh mines. These new segments are expected to provide a wider and more predictable demand base, enhancing the company's resilience.

Technology remains at the core of Tejas Cargo's operational strategy. The company has implemented an in-house ERP platform that manages the entire logistics lifecycle, from order acquisition to billing and payment. Its fleet is equipped with advanced smart systems, including GPS, geofencing, IoT devices, ADAS/DSM (Advanced Driver Assistance Systems/Driver State Monitoring), and AI-based rear cameras. These tools significantly improve visibility, safety, and operational efficiency, ensuring high fleet utilization and on-time performance. The first phase of HRMS and ERP modules is completed and under testing, with ERP Phase-II, covering inventory and repair workflows, slated for rollout by December.

Sustainability and Market Outlook

Tejas Cargo is also making strides in sustainable logistics. The company has deployed electric vehicles for last-mile e-commerce deliveries, notably through a five-year agreement with Amazon. This initiative strengthens its green and low-carbon logistics footprint, aligning with global sustainability trends. While the higher cost of EVs compared to diesel trucks necessitates long-term client commitments, this move positions Tejas Cargo as a forward-thinking player in eco-friendly transportation.

The broader Indian logistics market presents a highly supportive environment for Tejas Cargo. The 3PL market is projected to grow at a CAGR of 6-14% and is expected to reach USD 48-73 billion by 2030, fueled by the e-commerce boom, technology adoption, and government initiatives like PM GatiShakti and Bharatmala. These initiatives are significantly improving infrastructure, leading to faster turnarounds, more predictable vehicle movement, and easier access to industrial corridors. Tejas Cargo's strategic focus on expanding its capacity, strengthening its presence in high-growth sectors, and enhancing efficiency through technology positions it favorably to capitalize on these tailwinds and scale its operations in the coming years.

Financial Discipline and Future Vision

Tejas Cargo maintains a disciplined approach to capital allocation. The company's CAPEX for fleet expansion is financed partly through internal accruals and partly through existing bankers, leveraging its multiple banking relationships. Management has indicated no plans to refinance existing loans, citing an already low cost of commercial vehicle financing (8.2% to 8.6%). This prudent financial management supports its long-term strategic goals rather than short-term gains.

Looking ahead, Tejas Cargo aims to continue its growth trajectory by adding 40-50 more vehicles in H2 FY26 and scaling newer verticals. The company is also focused on reducing its top-10 client concentration from 78% in H1 FY26 to a target of 60-65% in H2 FY26, further diversifying its revenue base. With a clear vision for vertical scaling and strategic expansion, Tejas Cargo India Limited is well-positioned to strengthen its role as a backbone of India's logistics industry.