Western Carriers EBITDA margin nearly halves from FY24 levels

Western Carriers (India) Limited reported a 4.44% EBITDA margin in H1-FY27, down from 8.67% in FY24, while working-capital days rose to 115 in FY26 from 56 in FY24. H1-FY27 operational revenue increased 6.8% year on year to Rs 913.5 crore, but profit after tax declined 9.6% to Rs 17.8 crore.

How far has Western Carriers’ EBITDA margin fallen?

Western Carriers’ EBITDA margin fell by 4.23 percentage points from 8.67% in FY24 to 4.44% in H1-FY27. This represents a 48.8% reduction in the reported margin, meaning it nearly halved but did not fall by more than half. The margin declined in every reported period: 6.95% in FY25, 4.65% in FY26 and 4.44% in H1-FY27.

The EBITDA trend declined despite revenue growth in the full-year comparison. EBITDA was Rs 146.1 crore in FY24, Rs 119.9 crore in FY25 and Rs 85 crore in FY26, while operational revenue increased from Rs 1,685.8 crore in FY24 to Rs 1,829.2 crore in FY26. FY26 revenue was therefore Rs 143.4 crore above FY24, but EBITDA was Rs 61.1 crore lower.

H1-FY27 extended the direction reported in FY26, although a half-year period is not directly comparable with a full financial year. EBITDA in H1-FY27 was Rs 40.6 crore on operational revenue of Rs 913.5 crore, compared with Rs 39.6 crore on Rs 855.4 crore in H1-FY26. EBITDA increased 2.5%, below the 6.8% revenue increase, reducing the margin by 19 basis points.

Why did Western Carriers’ profit decline while revenue grew?

Western Carriers’ H1-FY27 profit after tax declined because expense growth exceeded revenue growth and other income fell. Total expenses increased 7.0% to Rs 872.9 crore, against 6.8% growth in operational revenue to Rs 913.5 crore. EBITDA consequently rose by Rs 1 crore, while other income declined 27.1% to Rs 6.2 crore.

Depreciation and tax were further deductions from H1-FY27 profit. Depreciation increased 15.6% year on year to Rs 14.1 crore, while finance cost decreased 4.4% to Rs 8.7 crore. Profit before tax declined 10.4% to Rs 24.1 crore and profit after tax declined to Rs 17.8 crore, producing a 1.95% PAT margin compared with 2.30% in H1-FY26.

The multi-year figures show a larger reduction than the half-year comparison. PAT declined from Rs 80.3 crore in FY24 to Rs 65.1 crore in FY25 and Rs 38.8 crore in FY26, even as operational revenue rose in both years. PAT margin correspondingly declined from 4.76% in FY24 to 2.12% in FY26, before reaching 1.95% in H1-FY27.

What happened to Western Carriers’ cash conversion and working capital?

Western Carriers’ working-capital days rose to 115 in FY26 from 56 in FY24, an increase of 59 days. The measure first increased to 99 days in FY25, making the FY26 level more than twice the FY24 figure. The presentation does not provide a working-capital-days figure for H1-FY27.

Working-capital changes were cash outflows of Rs 96.2 crore in FY25, Rs 72.5 crore in FY26 and Rs 17.5 crore in H1-FY27. In FY25, these outflows reduced operating profit before working-capital changes of Rs 121.7 crore to cash generated from operations of Rs 25.5 crore. In FY26, Rs 86.5 crore of operating profit before working-capital changes became Rs 14 crore of cash generated from operations.

Net cash from operating activities was negative Rs 2.7 crore in FY25 and negative Rs 21.8 crore in FY26, after direct taxes paid of Rs 28.2 crore and Rs 35.8 crore, respectively. H1-FY27 generated Rs 17.6 crore of net operating cash after Rs 7 crore of direct taxes, while cash and cash equivalents at period end were Rs 2.9 crore, down from Rs 9.2 crore at FY26 end.

Trade receivables stood at Rs 701.1 crore at H1-FY27, compared with Rs 695.2 crore at FY26 end and Rs 620.4 crore at FY25 end. Total current assets rose to Rs 917.3 crore at H1-FY27 from Rs 827.6 crore at FY26 end, while current borrowings increased to Rs 240.9 crore from Rs 210.8 crore. These balance-sheet movements are reported without an H1-FY27 working-capital-days measure.

How have Western Carriers’ returns, leverage and per-share earnings changed?

Western Carriers’ return on equity, or ROE, declined from 20.93% in FY24 to 5.44% in FY26, while return on capital employed, or ROCE, decreased from 22.41% to 4.58%. The presentation states that both return measures are adjusted for unutilized initial public offering proceeds. No ROE or ROCE values are shown for H1-FY27.

Debt to equity declined from 0.7 times in FY24 to 0.2 times in FY25, then measured 0.3 times in FY26 and H1-FY27. Diluted earnings per share declined from Rs 7.16 in FY25 to Rs 3.81 in FY26 and Rs 1.74 in H1-FY27. Equity increased from Rs 828.1 crore in FY25 to Rs 884.8 crore at H1-FY27, while total assets increased from Rs 1,103.6 crore to Rs 1,268.2 crore.

Conclusion

Western Carriers’ reported trend combines higher operational revenue with lower margins, profits and returns. From FY24 to FY26, operational revenue increased by Rs 143.4 crore, but EBITDA declined by Rs 61.1 crore and PAT declined by Rs 41.5 crore. The 4.44% EBITDA margin and 1.95% PAT margin in H1-FY27 indicate that the pressure evident in FY26 continued into the first half.

The presentation provides no management targets for margins, working-capital days or returns. The unresolved points for subsequent financial statements are whether EBITDA growth catches up with revenue growth, whether working-capital days move from FY26’s 115 days, and whether positive operating cash flow continues after the Rs 17.5 crore H1-FY27 working-capital outflow.