VRL Logistics Q4 profit slips 3% despite higher revenue; margin contracts

VRL Logistics Ltd reported a subdued performance for the March quarter on May 18, with profitability and operating margins coming under pressure despite a rise in revenue.

The company posted a net profit of ₹72 crore for Q4FY26, down 3% from ₹74.3 crore in the corresponding quarter last year. Revenue rose 5.4% year-on-year to ₹853 crore, compared with ₹809 crore a year ago, supported by steady business activity across segments.

Operating performance, however, remained weak during the quarter. EBITDA declined 5% to ₹177.2 crore from ₹187 crore in the year-ago period, while EBITDA margin contracted sharply to 20.8% from 23% a year earlier, indicating pressure on profitability.

Following the earnings announcement, shares of VRL Logistics fell to an intraday low of ₹236.40 before recovering some losses. The stock was trading at ₹242.75, down 2.14%, on the NSE as of 1:47 PM.

The latest quarter follows a mixed trend seen in the December quarter as well. In Q3FY26, the company had reported a 9% rise in net profit to ₹64.75 crore from ₹59.42 crore a year earlier, while total income remained flat at ₹831 crore.

Management had then attributed the muted topline growth to volume moderation arising from contract restructuring and the company’s voluntary exit from low-margin business segments.

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The company had also announced an interim dividend of ₹5 per equity share during the December quarter. VRL Logistics had noted that it does not expect any material impact from the implementation of new labour codes, citing its existing employee-friendly compensation structure and compliance practices.

VRL Logistics operates one of India’s largest road transportation and logistics networks, with a significant presence across goods transport and passenger travel services.