Western Carriers Navigates Q2 FY26 with Strategic Shifts and Domestic Strength

Western Carriers (India) Limited has reported a resilient performance for the second quarter and first half of fiscal year 2026, demonstrating strategic agility amidst a cautious global economic environment. For Q2 FY26, the company recorded revenues from operations of INR 440 crores, marking a 6% quarter-on-quarter growth. While EBITDA stood at INR 19 crores with a margin of 4.3%, the first half (H1 FY26) saw total revenues reach INR 855 crores. EBITDA for H1 FY26 was over INR 40 crores, and Profit After Tax (PAT) exceeded INR 20 crores, maintaining a PAT margin of 2.3%. A significant financial highlight was the substantial reduction in net debt, which now stands at a mere INR 8.4 crores, a remarkable improvement from INR 228.55 crores in the previous year.

The company's operational landscape in Q2 FY26 was characterized by robust domestic growth, which surged by over 25% quarter-on-quarter, contributing significantly to the overall TEU volume. This strong domestic performance helped offset the muted growth in EXIM (Export-Import) volumes, which saw only a marginal increase of less than 2% year-on-year for H1, primarily due to prevailing geopolitical situations. Despite these external challenges, Western Carriers' diversified and asset-light logistics model ensured steady volumes and strong service reliability across all sectors. The management expressed confidence in a strong order book and anticipates a recovery in EXIM business, expecting improved realizations and overall performance in the second half of FY26.

Strategic Initiatives and Operational Focus

Western Carriers has been proactive in its strategic initiatives, particularly with the successful commissioning of its Gati Shakti multimodal cargo terminal at Devaliya, near Morbi. This 30-acre facility is a pivotal development, designed to handle both container and wagon rake operations, catering to a broad industrial ecosystem including the salt, ceramic, chemical, agri-import, and fertilizer sectors, as well as numerous MSMEs. The terminal's strategic location enhances connectivity and leverages the economics of the Dedicated Freight Corridors (DFCs), positioning it as a critical western logistics hub.

New rail services have already commenced from Devaliya to South and North India, and the company has expanded its reach into Central India with operations in Indore. These expansions are expected to significantly boost the MSME business. Furthermore, Western Carriers has invested over INR 30 crores in capital expenditure during H1 FY26, focusing on heavy equipment, specialized containers, and road assets to strengthen its multi-modal supply chains. The company's asset-light model, combined with these strategic investments, ensures scalability and responsiveness to market demand.

Technology and Market Dynamics

Technology remains a core pillar of Western Carriers' strategy. The company is actively pursuing next-generation upgrades, including a mobile ERP system for real-time data capture and faster billing, aiming to streamline operations and reduce manual touchpoints. An integrated 4PL model is being developed for unified supply chain visibility and control, enhancing transparency and efficiency across the logistics chain. Innovation in container design, such as collapsible, jumbo, dwarf, and open-top containers, is also underway to optimize cargo capacity and cater to specialized needs.

The Indian logistics sector continues its strong growth trajectory, projected to expand significantly, driven by government initiatives like PM Gati Shakti, the National Logistics Policy, and the rollout of ULIP and ONDC. These policies are democratizing e-commerce and logistics, fostering inclusivity and efficiency. Western Carriers, with its comprehensive service portfolio spanning 3PL, 4PL, rail, road, water, air freight, warehousing, and customs house agency (CHA) services, is well-positioned to capitalize on these market tailwinds. The company's deep expertise in CHA, AEO, and stevedoring, coupled with its pan-India presence and strong client relationships, provides a competitive edge.

Outlook and Investor Confidence

Despite the challenges posed by global geopolitical situations affecting EXIM trade and the temporary impact on EBITDA margins, Western Carriers maintains a confident outlook for the remainder of FY26. Management is focused on optimizing receivables, improving cash conversion, and leveraging its diversified service offerings to drive growth. The significant reduction in net debt strengthens the balance sheet, providing a solid foundation for future expansions and strategic initiatives. The company's commitment to customer delight, operational excellence, and technological advancement underscores its long-term vision and potential for sustained value creation for its stakeholders.