Synopsis: AVG Logistics surged 9% on the declaration of foraying into the transportation of liquid chemicals through the rail mode. The newly introduced vertical ISO tank can ensure an annual revenue stream of Rs 22-24 crore per train, marking an addition to the diversification front with the element of sustainability.
The shares of this company, which is in the business of transportation of goods, warehousing, and other incidental activities, along with trading business, had its shares in momentum today following the company’s announcement of entering into liquid chemical rail transport with a good revenue outlook.
With the market cap of Rs 274 crore, the shares of AVG Logistics Ltd had hit their intraday high at Rs 186.95 , gaining about 9 per cent compared to their previous day’s closing price of Rs 171.60. The shares are trading at a PE of 13.3, whereas their industry PE is at 24.6
About the new business vertical.
AVG Logistics has taken a strategic step beyond its traditional parcel and freight operations to initiate rail-based liquid chemical transportation through high-grade ISO tanks. This represents the company’s entry into a specialised and higher-value logistics segment, for which safety, compliance, and asset quality are of the essence.
The launch with Chemplast Sanmar as the first customer gives early validation of demand from established chemical players and underlines the relevance of AVG’s offering in industrial corridors.
From a financial standpoint, the new liquid logistics vertical presents visible revenue potential. With the capacity to carry about 3,100 tonnes per trip on every train through 96 ISO tank containers, it is estimated that every train should bring in Rs 22 to 24 crore in yearly revenues, translating into a meaningful incremental contribution and commercial viability.
The model is also reasonably asset-light, with AVG leasing flatbed trains from the Central Warehousing Corporation and integrating them with its existing ISO tanker fleet to offer a seamless first-mile, long-haul, and last-mile solution.
Strategically, this is positive for AVG Logistics, as it further enhances its competitiveness by leveraging rail efficiency and sustainability advantages. This is because rail transportation of liquids is environmentally friendly and also shortens transit time and risk of damage when compared to alternatives. The future plan is to develop this vertical based on viability and customer demand. This is envisaged to further improve its service as a ‘total’ logistics solutions partner in particular sectors such as chemicals, pharmaceuticals, and industrial liquids.
Financial highlights and more
The revenue from operations for the company stood at Rs 143 crores in Q2 FY26 compared to Q2 FY25 revenue of Rs 138.5 crores, up by about 3 per cent YoY. However, the net profit stood at Rs 5.08 crore in Q2 FY26, down from Rs 5.38 crore in Q2 FY25.
The presence in large FMCG, auto, chemical, pharma, power, telecom, and e-commerce segments through its star-studded clientele showcases the company’s broad-based and diverse clientele. The presence of established old clients like Nestle, HUL, ITC, Tata Group brands, PepsiCo, Coca-Cola, Apollo Tyres, GSK, Johnson & Johnson, and Airtel bears testimony to their execution capabilities and operational intensity.
The acquisition of new clients in FY25-26 from large brands like Reliance Retail, Haldiram’s, Marico, Bikaji, Tata Steel, Amazon, Dalmia Bharat, Maruti Suzuki, and Zydus is a major positive and showcases their increasing acquisition abilities.
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