Flomic returns to profit as H1 EBITDA margin reaches 10.2%

Flomic Global Logistics Ltd returned to profit in H1 FY27, reporting Rs 6.3871 crore net profit after tax against a Rs 3.9915 crore loss a year earlier, as earnings before interest, tax, depreciation and amortisation rose 80.48% to Rs 28.1438 crore and margin reached 10.2%.

How did Flomic return to profit in H1 FY27?

Flomic returned to profit as EBITDA grew faster than revenue and expenses in several cost lines declined. Revenue from operations increased 28.15% year on year to Rs 275.6520 crore from Rs 215.1022 crore, while EBITDA rose 80.48% from Rs 15.5936 crore. Profit before tax consequently moved to Rs 8.8182 crore from a Rs 4.0746 crore loss.

Net profit after tax, or PAT, was Rs 6.3871 crore in H1 FY27, compared with a Rs 3.9915 crore loss in H1 FY26. PAT margin was 2.3%, and basic earnings per share changed to Rs 3.52 from a Rs 2.20 loss per share. The turnaround occurred despite tax expense of Rs 2.4311 crore, compared with a Rs 8.31 lakh tax credit a year earlier.

What drove Flomic's H1 FY27 margin expansion?

Flomic's EBITDA margin rose to 10.2% from 7.2% because employee benefit expenses and other expenses fell while revenue increased. Employee benefit expenses declined to Rs 19.2412 crore from Rs 23.6831 crore, while other expenses fell to Rs 7.2225 crore from Rs 8.9856 crore. The 296-basis-point change equals a 2.96-percentage-point increase in margin.

Operating expenses increased to Rs 221.9739 crore from Rs 167.6556 crore, exceeding the revenue growth rate in the period. However, the lower employee and other expenses helped EBITDA increase by Rs 12.5502 crore. Depreciation and amortisation declined to Rs 13.7095 crore from Rs 13.9062 crore, while finance cost fell to Rs 5.6161 crore from Rs 5.7620 crore.

Q2 FY27 also recorded a higher margin than its prior-year quarter. Revenue increased 36.87% to Rs 155.6543 crore, EBITDA rose 90.00% to Rs 16.9381 crore and EBITDA margin was 10.9%, versus 7.8% in Q2 FY26. Q2 PAT was Rs 4.3245 crore, reversing a Rs 1.0136 crore loss.

Which services generated Flomic's H1 revenue and gross profit?

Flomic's H1 FY27 revenue mix was led by sea export at 33% and air and sea import forwarding at 31%. Air export contributed 16%, warehousing contributed 14%, and air and sea import CCL contributed 6%. The presentation lists CCL as a separate product category without defining the abbreviation.

Warehousing supplied 36% of gross-profit contribution while accounting for 14% of revenue, the largest disclosed gap among the product categories. Air and sea import forwarding represented 28% of gross profit against 31% of revenue, while sea export accounted for 19% of gross profit against 33% of revenue. These are contribution shares and do not disclose service-level profit margins.

The mix differed between Q2 and H1 FY27. Sea export represented 38% of Q2 revenue versus 33% in H1, while air export increased from 14% in Q2 to 16% in H1. Warehousing contributed 40% of Q2 gross profit and 36% for H1, alongside a revenue share of 13% in Q2 and 14% in H1.

What operating scale did Flomic report in H1 FY27?

Flomic handled 20,435 shipments in H1 FY27, added 385 customers and reported a warehousing footprint of 13.8 lakh square feet. Cargo volumes were 11,146 twenty-foot equivalent units of full-container-load sea freight, 16,083 cubic metres of less-than-container-load sea freight, and 2,303 metric tonnes of air cargo.

Q2 FY27 accounted for 9,890 shipments and 201 customers added, against the H1 totals of 20,435 and 385 respectively. Q2 volumes included 6,209 full-container-load units, 9,094 cubic metres of less-than-container-load cargo and 1,271 metric tonnes of air freight. Flomic did not provide H1 FY26 cargo or shipment volumes for a year-on-year operating comparison.

Management said it added 15,000 square feet of storage area at Bhiwandi in Q2 FY27 through a multi-tier storage structure. It also expanded pallet-racking capacity by more than 2,000 positions, citing demand from quick-commerce and fast-moving consumer goods customers. Management said its asset-light model and diversified service portfolio supported the quarter's operating performance.

What changed in Flomic's balance sheet by H1 FY27?

Flomic's total equity increased to Rs 53.4825 crore at H1 FY27 from Rs 47.1511 crore at FY26, while total assets increased to Rs 235.5478 crore from Rs 178.1587 crore. Other equity rose to Rs 35.3141 crore from Rs 28.9827 crore, and non-current borrowings declined to Rs 1.1295 crore from Rs 1.7433 crore.

Current assets rose to Rs 146.6497 crore from Rs 93.5021 crore, including trade receivables of Rs 108.8187 crore versus Rs 58.9582 crore. Cash and cash equivalents declined to Rs 1.7417 crore from Rs 13.0818 crore. Current borrowings increased to Rs 49.8586 crore from Rs 22.0814 crore and total current liabilities increased to Rs 136.1434 crore from Rs 86.3965 crore.

The presentation reports the period-end increases in receivables, borrowings and current liabilities but does not state their causes. Finance cost nonetheless declined to Rs 5.6161 crore in H1 FY27 from Rs 5.7620 crore in H1 FY26. The balance-sheet changes therefore accompanied, rather than explain, the reported first-half profit recovery.

Conclusion

Flomic's first-half result combined 28.15% revenue growth with an 80.48% increase in EBITDA, converting the prior-year loss into Rs 6.3871 crore of PAT. Lower employee benefit and other expenses contributed to the margin increase, while warehousing's 36% gross-profit share exceeded its 14% contribution to revenue.

Management said it will focus on expanding its integrated logistics platform, warehousing and specialised logistics capabilities. The next reported periods can show whether the 15,000-square-foot Bhiwandi addition and more than 2,000 new pallet-racking positions support revenue and margins, and whether receivables of Rs 108.8187 crore and current borrowings of Rs 49.8586 crore change.