AVG Logistics Targets ₹100 Crore From Liquor Transport

AVG Logistics Limited has entered liquor logistics through five-year contracts with two domestic companies, targeting about ₹25 crore of revenue in FY 2026-27 and roughly ₹100 crore annually from the following financial year. The move adds a regulated, specialised transport service to the company’s existing logistics portfolio.

What contracts has AVG Logistics signed for liquor transport?

AVG Logistics has finalised commercial terms for long-term logistics and transportation agreements with two domestic companies in the alcoholic beverages industry. The customers’ names were not disclosed. The contracts, disclosed under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, have a five-year tenure.

The agreements cover primary and secondary transportation in the liquor supply chain. AVG Logistics will provide dedicated vehicles, GPS-enabled fleet monitoring, real-time shipment visibility, trained drivers and customised logistics services for manufacturers, distributors and retail networks. These arrangements are intended to support the movement of products across multiple stages of distribution.

The company described liquor transportation as a segment with high entry barriers. Its assessment is based on the regulatory compliance, specialised handling and secure delivery requirements involved in moving alcoholic beverages. AVG Logistics said these operating requirements can support attractive margins, although it did not disclose margin guidance or the capital expenditure associated with the new contracts.

Managing Director Sanjay Gupta said the new vertical would strengthen the company’s service portfolio and contribute positively to profitability. The disclosure did not specify the number of vehicles to be deployed, the operating regions or a phased rollout schedule for the liquor contracts.

How much revenue does the new liquor vertical target?

AVG Logistics expects the liquor logistics business to generate approximately ₹25 crore in revenue during FY 2026-27 and scale to around ₹100 crore annually in the following financial year. The company has presented the FY 2026-27 estimate as the initial contribution from the new vertical rather than as the total value of the five-year contracts.

The projected increase indicates a planned ramp-up in operations after the first year. However, the company has not disclosed the underlying volumes, client-wise revenue allocation, fleet requirement or utilisation assumptions behind the ₹100 crore annual target. Investors therefore have limited information to assess the pace and mechanics of the expected scale-up.

The initial ₹25 crore revenue target represents a modest addition against AVG Logistics’ FY25 revenue of ₹551 crore. The proposed ₹100 crore annual run rate would be more material, but it remains a company target dependent on the execution and expansion of the contracted operations.

Why is liquor logistics different from general transportation?

Liquor logistics differs from conventional freight movement because alcoholic beverages operate within a tightly regulated distribution environment. AVG Logistics has identified strict compliance, specialised handling and secure transportation as the key features of the segment, alongside the need for GPS-based tracking and dedicated operating resources.

For a logistics provider, these requirements can make a contract operationally more specialised than a standard transportation mandate. The company’s announced service model includes real-time shipment visibility and trained drivers, which are designed to address traceability and handling needs across manufacturer, distributor and retail networks.

AVG Logistics is also expanding beyond its traditional transportation activities into other specialised areas. It launched liquid cargo transportation using high-grade ISO tanks on January 7, 2026. That operational launch was part of a strategic expansion funded through a ₹20 crore NBFC loan.

The company has separately signed a five-year agreement with a cement manufacturer to deploy 30 heavy-duty electric vehicles for bulk industrial logistics in the North East. That contract, which can be extended by three years, involves movement of raw materials and finished goods with net loads of 38 to 41 tonnes per trip. Together, these initiatives show a wider focus on dedicated and segment-specific logistics contracts.

What does the liquor entry mean for AVG Logistics and investors?

The liquor contracts add a new source of potential revenue visibility because they run for five years and specify a planned increase in annual business. They also broaden AVG Logistics’ exposure beyond its established client base in sectors such as FMCG, automobiles and consumer products. The company has named clients including Nestlé, Ferrero and Maruti Suzuki in its business update.

The development follows another long-term transportation win in the FMCG segment. AVG Logistics secured a three-year contract from Haldiram-Nagpur that is expected to generate about ₹35 crore in annual revenue. Under that agreement, the company will deploy 100 dedicated vehicles across western and southern India and key eastern markets including Odisha, Bihar and Jharkhand.

For investors, the key financial consideration is execution. The liquor business is expected to operate in a compliance-heavy setting and may require disciplined fleet deployment, security systems and service reliability. AVG Logistics has not disclosed contract-level costs, pricing, expected margins or the effect on overall earnings, so the revenue targets alone do not establish the eventual profitability contribution.

Conclusion

AVG Logistics has used two five-year agreements to enter liquor logistics, with an initial revenue target of approximately ₹25 crore in FY 2026-27 and a stated ambition to reach about ₹100 crore in annual revenue from the following year. The contracts extend the company’s presence in dedicated logistics services and add exposure to a regulated transport segment requiring specialised operations.

The next point to watch is the operational ramp-up disclosed by AVG Logistics, including any details on vehicle deployment, route coverage, customer additions and financial contribution. Updates on the ₹100 crore annual revenue target, as well as margins and utilisation, will be important for assessing the business impact of the new vertical.