Sical Logistics Q1 FY27: Revenue Surge, Margin Pressure, and a Clearer Balance Sheet

Sical Logistics reported a strong start to FY27, with consolidated revenue rising 36 percent year on year to Rs. 1,325.8 million in Q1 FY27. EBITDA increased 8.8 percent to Rs. 249.5 million, but profitability was mixed as the EBITDA margin moved down to 18.8 percent from 23.5 percent in Q1 FY26. Reported PAT stood at Rs. 212.1 million, helped by exceptional income from a non-core asset sale.

The quarter captured two parallel themes. The first was operational momentum, especially in Mining Logistics and Terminals. The second was balance sheet repair, with fresh bank facilities and monetisation of a non-core asset, both positioned as part of the company’s post-acquisition turnaround under the Pristine Group.

Segment performance: growth concentrated in Mining Logistics and Terminals

Mining Logistics was the standout. Segment revenue rose to Rs. 710 million in Q1 FY27 from Rs. 439 million in Q1 FY26, a 62 percent year on year increase. The presentation attributes the growth to a higher production share in the Nigahi joint venture, which rose to 35 percent versus about 25 percent in FY26. Revenue also included Rs. 118 million of diesel escalation pass-through. EBITDA for Mining Logistics increased 7 percent to Rs. 140 million, but margins declined, with the company citing operational disruptions and higher fuel costs linked to geopolitical tensions.

Terminals also grew steadily. Revenue increased 24 percent year on year to Rs. 444 million, supported by healthy throughput in the CFS business and the commencement of operations at the Chennai MMLP, which contributed Rs. 54 million to Q1 FY27 topline. Terminal EBITDA rose 9 percent to Rs. 97 million, with the company pointing to improved CFS margins and the benefits of its presence across southern ports.

Warehousing and 3PL was stable on revenue but improved on profitability. Revenue was Rs. 172 million compared with Rs. 177 million in Q1 FY26. EBITDA rose 29 percent to Rs. 12 million. The company linked the margin improvement to degrowth in low-margin full truck load transportation, reflecting a tighter focus on operating efficiency.

Margins and costs: growth delivered, but at a higher cost base

The topline acceleration came with a sharper rise in cost of services, which increased to Rs. 931.2 million in Q1 FY27 from Rs. 597.4 million in Q1 FY26. This was the key reason for the lower EBITDA margin despite higher revenue.

Management commentary in the deck is clear that Mining Logistics faced margin pressure due to higher cost of services and fuel-related challenges. While diesel escalation added to revenue, the impact on profitability was limited because operating conditions were also disrupted.

Finance costs declined to Rs. 127.4 million from Rs. 153.0 million, and depreciation also reduced to Rs. 84.0 million from Rs. 104.6 million. These movements supported PBT before exceptional items, which improved to Rs. 50.7 million from a small loss in Q1 FY26. However, the headline profitability is not purely operational because the quarter included an exceptional gain of Rs. 174.0 million linked to the sale of a non-core asset.

Balance sheet actions: refinancing, liquidity and asset monetisation

A notable part of the quarter’s update was balance sheet and liquidity restructuring. The company completed the sale of a non-core land and building asset at Madhavaram, Chennai for Rs. 180 million on June 30, 2026, described as aligned with the NCLT-approved resolution plan following the Pristine Group acquisition.

The company also executed credit facilities with Axis Bank totalling Rs. 1,150 million. This included an Rs. 850 million term loan, secured for a 9-year tenure at 9.25 percent interest per annum, intended to refinance high-cost debt led by Aditya Birla Finance. It also included Rs. 300 million of working capital facilities, split between fund-based cash credit and non-fund-based bank guarantees, at an 8.25 percent interest rate. In the presentation, this package is positioned as improving liquidity, enabling refinancing, and supporting future growth initiatives.

Separately, the company noted that it secured an equipment lease facility of Rs. 720 million from Tata Capital to deploy mining equipment for the SECL project, including dumpers, excavators and dozers.

Growth visibility: order book and project commissioning in Q2 FY27

The company disclosed an order book of Rs. 38,000+ million in Mining Logistics as on June 30, 2026. It also highlighted the SECL Porda-Chimtapani project as a near-term opportunity. SECL issued a revised work order approving a partial change of site at Kanchan OCM, reallocating contract value of Rs. 776.9 million excluding GST, which represents 2.27 percent of the total contract value of Rs. 34,221.9 million, from Porda Chimtapani OCP to Kanchan OCM. The COD is expected to start from Q2 FY27, and the work is to be performed at existing awarded rates and contractual terms.

On the terminals side, the Chennai MMLP commercialisation in December 2025 is presented as the company’s entry into the MMLP business, with Q1 FY27 showing initial revenue contribution. The deck also outlines an upcoming MMLP in Bengaluru on a 65+ acre rail-linked parcel, although it does not provide commissioning timelines in the presented material.

Takeaways from Q1 FY27

Sical Logistics delivered strong revenue growth in Q1 FY27, driven by Mining Logistics scale-up and Terminal momentum, including the early contribution from the Chennai MMLP. At the same time, margins tightened due to cost pressures in mining operations, and reported profits were boosted by exceptional income from a non-core asset sale.

The quarter’s disclosures underline that the turnaround strategy is as much about operational recovery as it is about reshaping the capital structure. The refinancing package with Axis Bank and the asset monetisation provide near-term balance sheet support. The next key operational marker indicated in the deck is the start of COD for the SECL mining operations from Q2 FY27, which the company expects to add to growth in the near term.