Patel Integrated Logistics in FY26: Profit crosses INR 10 crore as air freight stays core

Patel Integrated Logistics Limited closed FY26 with modest revenue growth but a sharper improvement in profitability, supported by tighter costs and lower finance expense. Operational income for FY26 was INR 357.2 crore, up 4.23 percent year on year, while EBITDA increased 17.05 percent to INR 10.3 crore. Profit after tax rose 26.32 percent to INR 9.6 crore. In Q4 FY26, operational income grew 11.66 percent year on year to INR 96.7 crore, and EBITDA margin improved to 3.82 percent from 2.42 percent in Q4 FY25.

The business remains heavily concentrated in air freight. The company positions itself as a long-standing air cargo intermediary that moves freight largely through passenger aircraft networks. The investor presentation highlights a presence across 112 airports in India and 125 offices, with cargo handled ranging from 250 grams to 40 tonnes. Its clientele spans e-commerce, pharmaceuticals, FMCG, IT and engineering goods, and it operates in both domestic and international forwarding through its air freight division.

FY26 performance: revenue steady, profitability improves

The year’s improvement was visible across operating profit and below-the-line metrics. Finance cost reduced sharply to INR 0.4 crore in FY26 from INR 1.2 crore in FY25. This, along with stable depreciation and higher operating profit, helped profit before tax rise to INR 10.3 crore from INR 7.7 crore.

Q4 FY26 was particularly stronger. EBITDA rose to INR 3.7 crore versus INR 2.1 crore in Q4 FY25, and PAT increased to INR 3.0 crore from INR 1.9 crore. Management described the performance as driven by execution and disciplined cost management, and stated it was not a one-off.

Balance sheet indicators also improved. Debt-to-equity declined to 0.05x in FY26 from 0.11x in FY25. Total borrowings reduced across both current and non-current buckets. Management added that the company maintains a healthy liquidity position, describing itself as net debt free in practical terms, and referenced cash and cash equivalents of more than INR 20 crore.

Air freight remains the engine: domestic and international mix

The investor presentation provides a clean revenue split for the air freight division. In FY26, total air freight revenue was INR 346.5 crore, comprising INR 206.0 crore domestic and INR 140.5 crore international. This compares with FY25 air freight revenue of INR 334.2 crore. The wider company revenue for FY26 was INR 357.2 crore, indicating that non-airfreight streams are currently small relative to the core.

Operationally, the company disclosed tonnage movement trends in its presentation. Domestic load increased materially from FY23 to FY24 and then stayed broadly stable through FY26. International tonnage showed steady growth through FY26. This data, combined with the revenue mix, signals that international is a growing component of the air freight franchise.

The management commentary also acknowledged near-term dynamics in freight pricing. On the May 2026 earnings call, management said international rates had increased around 15 percent since March, and noted supply issues. It added that the company operates with more than 60 airlines, which supports continuity of service even when capacity tightens.

Strategy: asset-light growth, tighter controls, and selective new verticals

Two strategy threads stood out in the company’s communication: operating discipline and return on capital focus.

On technology and controls, the investor deck highlights Freight BILL, a digital platform launched in 2022, with 99 percent adoption achieved in 2024. In the concall, management described system-driven receivable control, where servicing is automatically stopped if a customer’s overdue days exceed an internal threshold. It also mentioned exploring AI to reduce leakages and improve monitoring, while keeping some flexibility driven by institutional knowledge.

On expansion choices, warehousing appears to be a supporting capability rather than the immediate growth priority. The company’s warehouse business, started in 2017, is described as having over 200,000 square feet of warehousing space and a long-term lease for the Bengaluru warehouse. However, management said it is ROCE-driven and currently earns higher returns from existing operations than it expects from investing into additional warehousing assets. It did not rule out future warehousing expansion, but made no commitments.

The most concrete new initiative is the subsidiary Rajpat Logistics Limited, formed in the December quarter. Management described it as an asset-light logistics business that will not own trucks and will instead leverage network strength and brand relationships to win select corporate accounts. When asked about scale, management said Rajpat could add about 25 percent revenue relative to the current roughly INR 400 crore bucket, and it expects meaningful turnover in the next two to three years. It also indicated margins may be minimal, but expects high capital churn and an upward of 15 percent ROCE due to lower receivables.

A second optionality is the redevelopment of a property. Management said it is actively pursuing redevelopment and is evaluating a combined development with adjacent properties to maximize value. It also said it does not prefer a one-time sale and wants the activity to remain within the listed company, though structuring is still being formulated.

Closing takeaway

FY26 shows Patel Integrated Logistics delivering better profitability on a still-low margin base, with a cleaner balance sheet and sharply reduced finance costs. The business continues to be anchored in air freight, with disclosed domestic and international revenue splits providing useful transparency.

The forward narrative is built around three levers mentioned by management: sustaining air freight growth in a tightening rate environment, extending system-led operational discipline, and building an additional asset-light vertical through Rajpat Logistics over the next two to three years. Property redevelopment remains a potential value driver but is still in discussion stages. Together, these provide a clearer view of how the company intends to balance growth with return on capital discipline.