VRL Logistics Ltd Q2FY27 PAT more than doubles to Rs 103 crore

VRL Logistics Ltd more than doubled profit after tax in Q2FY27 to Rs 103 crore from Rs 49.9 crore a year earlier, as tonnage rose 11% and realisation per tonne increased 9%, lifting the earnings before interest, tax, depreciation and amortisation margin to 23.3% from 19.7%. PAT grew 106%, exceeding the 20% rise in total income.

Why did VRL's Q2FY27 profit more than double?

VRL's Q2FY27 profit after tax, or PAT, increased 106% year on year to Rs 103 crore, while total income rose 20% to Rs 966.6 crore. PAT margin expanded by 445 basis points, or bps, to 10.7% from 6.2% in Q2FY26. Profit before tax rose 99% to Rs 137.8 crore, and its margin increased to 14.3% from 8.6%.

Earnings before interest, tax, depreciation and amortisation, or EBITDA, grew 43% to Rs 225.6 crore from Rs 158.1 crore, faster than the 21% increase in revenue from operations to Rs 961.9 crore. Depreciation declined to Rs 63.9 crore from Rs 64.8 crore, while finance cost was marginally lower at Rs 23.9 crore versus Rs 24.2 crore, contributing to the larger increase in earnings below EBITDA.

How did VRL's volumes and freight rates lift revenue?

VRL increased Q2FY27 gross tonnage by 11% to 1,079 thousand tonnes from 976 thousand tonnes in Q2FY26, while realisation per tonne rose 9% to Rs 8,840 from Rs 8,079. Management said fuel-price escalation and rationalisation of freight contracts necessitated the freight-rate increase. Higher traffic and pricing coincided with a 20% increase in total income to Rs 966.6 crore.

The quarter also improved sequentially from Q1FY27, when tonnage was 1,019 thousand tonnes and realisation per tonne was Rs 8,546. Q2FY27 tonnage was 6% higher quarter on quarter, while realisation rose 3% and revenue from operations increased 9% from Rs 878.8 crore. The presentation reported more than 11,700 tonnes serviced daily in Q2FY27 and 67 branches added in H1FY27.

Less-than-truckload, or LTL, business represented 90.4% of H1FY27 sales, compared with 8.2% for full-truckload, or FTL, and 1.4% for other activities. This mix indicates that LTL was VRL's principal revenue category during the half year. Management also cited new customers, including contractual customers, in its H1FY27 revenue analysis.

Which costs changed VRL's EBITDA margin?

VRL expanded its Q2FY27 EBITDA margin by 367 bps to 23.3% from 19.7% in Q2FY26 despite higher operating costs in rupee terms. Fuel cost rose to Rs 247.1 crore from Rs 205.7 crore but was nearly unchanged as a share of revenue at 25.57%, versus 25.59%. Management said fuel consumption increased 5.5% and average diesel procurement cost rose to Rs 97.05 per litre from Rs 85.44 per litre.

Employee cost rose to Rs 159.3 crore from Rs 147.1 crore but declined to 16.48% of revenue from 18.30%, a reduction of 182 bps. Bridge and toll expenses increased to Rs 68.3 crore from Rs 62.3 crore as own-vehicle kilometres, toll plazas and toll prices rose, yet their revenue share fell to 7.07% from 7.75%.

The movement was not uniform across all expense lines. Vehicle running, repairs and maintenance rose to 5.53% of revenue from 5.25%, reaching Rs 53.5 crore from Rs 42.2 crore, while lorry-hire charges were 4.47% of revenue against 4.43%. Administrative expenses declined to Rs 13.9 crore from Rs 18.3 crore, which management attributed to lower legal, professional and corporate social responsibility expenses. Management attributed the EBITDA-margin expansion to higher volumes and freight rates.

What did VRL report for H1FY27 cash generation and debt?

VRL reported H1FY27 total income of Rs 1,851.4 crore, up 19% from Rs 1,554.8 crore in H1FY26, while PAT increased 84% to Rs 183.5 crore from Rs 99.9 crore. H1FY27 EBITDA rose 32% to Rs 418.2 crore, and its margin improved by 225 bps to 22.6%. Tonnage increased 10% to 2,099 thousand tonnes and realisation per tonne rose 9% to Rs 8,697.

Operating profit before working-capital changes was Rs 415.7 crore in the six months ended September 2026, compared with Rs 314.1 crore in the corresponding period a year earlier. Net cash from operating activities was Rs 362.5 crore, against Rs 334.2 crore. Net debt was Rs 337 crore, lower than Rs 440 crore at March 2026, while current assets at September 2026 included investments of Rs 280.8 crore.

The half-year cost profile also reflected the reported pricing effect. Employee cost increased to Rs 312.9 crore from Rs 282.8 crore but declined to 16.90% of revenue from 18.19%. Fuel cost was Rs 471.6 crore, or 25.47% of revenue, compared with Rs 396.5 crore, or 25.50%, even as average fuel purchase cost rose to Rs 95.46 per litre from Rs 84.30 per litre.

Conclusion

VRL converted higher Q2FY27 freight volumes and realisation into a faster rise in operating profit than in income. Total income increased 20%, EBITDA rose 43% and PAT grew 106%, while the EBITDA margin expanded 367 bps to 23.3%. The reported cost data show that freight-rate increases reduced the revenue share of employee, toll, handling and several other costs despite increases in many expenses in rupee terms.

The next reported periods will show whether the 67 branches added in H1FY27, intensified marketing in established and new branches, and management's geographical expansion into untapped areas continue to support tonnage and realisation. VRL also disclosed an equity buyback of Rs 280 crore at Rs 320 per share, with a record date of October 22, 2026, alongside net debt of Rs 337 crore at H1FY27.