Allcargo Logistics Ltd (NSE: ALLCARGO) Q3 2026 Earnings Call dated Feb. 06, 2026
Corporate Participants:
Ketan Kulkarni — Managing Director & Chief Executive Officer
Deepak Pareek — Chief Financial Officer
Analysts:
Unidentified Participant
Suyash Samant — Analyst
Rushabh G Shah — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the all Cargo Logistics Limited Q3 and 9 month FY26 earnings conference call. As a reminder, all participant clients will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your Touchstone phone. Please note that this conference is being recorded from Stellar IR Advisor. Thank you. And over to you sir.
Suyash Samant — Analyst
Thank you. Good afternoon everyone and thank you for joining us. Today we have with us the senior management team of all Cargo Logistics Ltd. Mr. Ketan Kulkarni, Managing Director and CEO, Mr. Deepak Parekh, Chief Financial Officer and Mr. Sanjay Panjabi from the Investor Relations team. Management will be sharing operating and financial highlights for the quarter and nine months ended 31 December 2025 followed by a question and answer session. Please note this call may contain some of the forward looking statements which are completely based upon the company’s beliefs, opinions and expectations as of today. These statements are not a guarantee of the Company’s future performance and involve unforeseen risk and uncertainties.
The company also undertakes no obligation to update any forward looking statements to reflect developments that occur after the statement is made. I now hand over the conference to Mr. Ketan Kolkarni. Thank you. And over to you sir.
Ketan Kulkarni — Managing Director & Chief Executive Officer
Thank you Suyash. Thank you very much. Good afternoon everybody and a warm welcome to our Q3 and 9 months FY26 earnings conference call. Thank you very much again for joining us and taking time out from your busy schedules. Our financial results and the earnings presentation for the quarter and the nine months ended December 2025 have been duly uploaded on the stock exchanges and we trust you have had an opportunity to review them. Starting with the macroeconomic environment. India continues to remain among the fastest growing major economies with GDP growth projected at approximately 7.3%. This momentum is being supported by the mother of all deals with Europe and also the recent tariff announcements by the Indian and American governments.
Strong domestic consumption, resilient urban and rural demand and sustained infrastructure led expansion will further be the tailwinds for Bharat’s progress. Even in the recent budget announcement, the government’s FY27 capital expenditure outlay has been increased to 12.2 lakh crore. This is a step up in capex focused essentially on accelerating infrastructure creation of road, railways, ports, logistics park, multimodal connectivity, training centers, etc. Etc. Which will all support manufacturing, export, MSME development and robust GDP growth. This will also democratize production, manufacturing and consumer centers in the country. The continued emphasis on large scale infrastructure spending is hence expected to drive higher freight movement, improve the logistics efficiencies and reduce overall supply chain costs.
We’ve recently seen the announcement that the overall cost of logistics in the country has been reduced by few percentage points. All this augurs very well for the logistics industry, especially the organized industry in which we operate and business over the medium and long term is very optimistic. Key operating indicators further reinforce this E We Able generation Under GST reached 138.4 million in December 2025 representing a robust 23.3.6% growth. This reflects a strong momentum in consumption, movement of goods across the country and essentially a very buoyant economic environment. GST collection for January 2026 stood at 1.93 lakh crores up 6.2%.
Year on year, steady growth in both E We Able volumes and GST collection points to a sustained strength in domestic trade. On the business front, the third quarter of financial year 2026 for us has been a transition quarter. All cargo logistics focused on quality and profitability. Our actions have led to visible improvements resulting in better yields and reduced costs and my colleague Deepak Parikh, Chief Financial Officer will further delve into this. Express Business profitability improved in comparison to the same period last year. This came on the back of yield improvement and cost control measures. We also witnessed very strong and steady improvement in on ground activity leading to market share gain.
For us. The growth in the CL contract logistics for our consultative logistics was muted as certain E Commerce customers differed their expansion plans. Our underlying client relationships across E Commerce Automotive Chemical remain very very strong as we focus on efficiency, led profitable growth and continue to strengthen our digital capabilities through cloud platforms, data analytics, control towers, upgraded WMS, etc. We will focus on unlocking new growth levers. Transportation and full truckload will be a focus area. With integration behind us, we expect EBITDA and PBT to grow faster than revenue in the coming quarters. With that I would now like to hand over the call to Deepak, our CFO who will take you through the financial performance for the quarter and the nine month period.
Thank you once again for your continued support and your participation. It is a pleasure as always to be on the call with all of you. Have a good afternoon. Over to you Deepak.
Deepak Pareek — Chief Financial Officer
Thank you Ketan for that detailed overview and good afternoon everyone and a warm welcome to all of you on our Q3 and 9 months FY26 earnings call. I will go through the financial results for the quarter ended 31st December 2025. During Q3FY26 all cargo logistics handled a total volume of 3 13,000 metric tons. The realization per ton for Q3FY26 came in at Rs. 11,610 per metric ton which is 2% up year on year and 0.4% up from last quarter. The net cash stands at a healthy rupees 88 crores. Moving to the consolidated financials, revenue for the quarter stood at Rs.516 crores versus Rs.519 crores in the same period last year it was Rs.537 crores in the last quarter.
The gross profit for the quarter stood at Rs. 153 crores which is in line with our year on year and quarter on quarter basis performance. The EBITDA for the quarter stood at Rs. 61 crores which is also in line with year on year and quarter on quarter performance of the company. On nine month basis the revenue reached rupees 1544 crores 7% growth from same period last year the EBITDA came in at rupees 174 crores representing 9% growth as compared to last year. Coming to the Express business financial highlights which we have shared in the presentation.
Also there the revenue for the quarter stood at Rs. 364 crores as compared to Rs. 372 crores during the same period last year it was Rs. 377 crores in the last quarter. The EBITDA from the business for the quarter stood at Rs.18 crores representing a 19% growth year on year basis and 6% sequentially. This growth in profitability has come on the back of our prudent decisions to improve service quality, strengthen profitability, managing costs and all the measures which Ketan addressed in his detailed overview. On nine month basis the revenue reached at Rupees 10.81crores Visa vis Rupees 1073crores.
In same period last year the EBITDA came in at rupees 44 crore in line with the same period last year. This was on the Express business. Moving on to our consultative logistics business Financial highlights the business has a warehouse space under management of 8.1 million square feet. As on the close of December 2025 the revenue from the business for Q3FY26 stood at Rs. 153 crores up 5% year on year. The EBITDA from the business for Q3FY 26 stood at Rs. 46 crore which is a 2% growth on year on year basis. On the nine months performance the revenue reached at Rs.
464 crores, a robust growth of 23% from same period. Last year the EBITDA came in at rupees 135 crores, a strong 16% growth from last year too. So with this I would like to open the floor for question and answers. And here I would like to end my discussion and thank you for your participation in our earnings. Call over to you Sush to take on the question and answers.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press STAR and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star N2 participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Rehan Sayed from Prenetra Asset Manager. Please go ahead.
Unidentified Participant
We are good after the team and thanks for taking my question. So I have a couple of questions. First on your back and AI implementation. I just want understand how it’s working. You have introduced 10 AI enablers and an integrated control power ecosystem. From an operational standpoint, has the CAT scan or hub height already resulting in measurable improvement in vehicle turnaround times or reduction in.
Ketan Kulkarni
Hi, sorry to tell you but your question was due to bad voice quality not received very well here. I don’t know if others on the call had a similar experience. If others have not had that experience, I would request somebody to sum up the question so we can take the answer.
Deepak Pareek
Can I repeat my question again?
Ketan Kulkarni
Your voice quality is the same.
operator
Mr. Syed, I would request you to please rejoin the queue and check your network connectivity please. Still you are cracking a bit now.
Unidentified Participant
Hello.
operator
Yeah, please proceed.
Unidentified Participant
Yeah, so yeah, my first question is around your tech and AI implementation. So you have introduced jn, AI enablers and an integrated control tower into your arbitrary ecosystem. So from an operational standpoint, has the GATE or hubby tech already resulted in miserable improvements in vehicle turnaround times or a reduction in spillage load during this steady quarter? This is my first Question.
Ketan Kulkarni
We could hear your first question clearly and thank you for your patience and understanding and repeating was on AI and control tower. I think clearly through our numbers you will see the focus was on to improve service quality, strengthening profitability and managing cost. The tech interventions are also a part of that responsibility that they took upon themselves. So whether it is AI in generating docket shipment directly from reading a barcode and without manual intervention, whether it is AI in terms of classifying the thousands of emails that come and the service quality intervention that we need to do and where, whether it is the control tower that maps all our vehicles on the nation’s roads 24×7, whether it is the app that tracks our Gati associates on the nation’s street that deliver about six shipments every second.
All this the platform of tech that we have enabled and we will continue doing so. A huge, huge credit goes to that tech piece.
Unidentified Participant
Okay, it’s very helpful. And my second question is around like if you can give this understanding a bit about sector specific strategy that you are doing. You are focusing on the auto and engineering and consumer password segment for cross selling synergies. So are there any specific subsectors within food and pharma which currently makes up 22% of your revenue mix where you plan to deploy the new life science and healthcare temperature control solutions mentioned in your growth excavator?
Ketan Kulkarni
Okay, now let me again repeat your question so that I can answer it better. You want to know about the sectors. You also want to know about food and pharma and where life science and
Unidentified Participant
temperature
Ketan Kulkarni
and temperature controlled areas. Would you like to know about this on the express side or the CL side?
Unidentified Participant
Same side
Ketan Kulkarni
on the CL side. So wonderful. I’ll address your question on the CL side on the life science and temperature control that is already a subset of our food and pharma that you can see there and within the pie the contribution is much much low.
In our interaction with food and pharma companies and life science companies we are seeing a huge white spot. We already do dipstick off temperature control in some of our facilities for pharma customers. That is an area that we would like to further focus on. The 3% contribution will definitely improve going ahead. Why we have a head start is because of our expertise in chemical where we handle hazardous material which is degree of difficulty more than doing food pharma, e commerce, auto engineering. We are seen as the experts on the table and all cargo logistics is the preferred service provider for chemical and we will leverage that advantage as we move into the food and Pharma, Life science and temperature control sector.
Unidentified Participant
Okay. Okay. And last one.
operator
Sorry to interrupt, Mr. Syed. Sorry. Please switch on the queue for more questions. Thank you. The next question is from the line of Adarsh from Legion Capital. Please go ahead.
Unidentified Participant
Hi sir, Am I audible?
Ketan Kulkarni
Yes, Adarsh, yes.
Unidentified Participant
Thank you for taking my question. I have two questions. My first question is following the recent mass resignations of the MD, CFO and CS in November of 2025, could you please provide some clarity on the new leadership’s immediate priorities?
Ketan Kulkarni
So the new leadership, the new md. The CFO and the CFR already in place.
Unidentified Participant
So we have our priorities or are they.
Ketan Kulkarni
Sorry, please repeat your question.
Unidentified Participant
My question is have our priorities changes the changes in the management.
Ketan Kulkarni
Okay. Have the priorities changed?
Unidentified Participant
Yes.
Ketan Kulkarni
So I’ll have this question answered by Deepak Parik, our cfo.
Deepak Pareek
Yeah, thanks Ketan. So I would answer in two parts to your answer. See we had the transition of management. We had, you know the scheme of merger which was effective on the 1st of October that had resulted in management shift or a change, mandatory change in management. The Al Carbo Logistics which was undertaking various businesses mainly isc, the International Freight Management that is moved out to a separate company. So the management team of that company is also have been domiciled into the other new company All Cargo Bhatti which is merged with Al Cargo Logistics. So the management team of All Cargo Bati have now been given the responsibility in the name of to manage this business under the name of Al Cargo Logistics.
So nothing changes on a broader horizon. Just that the team which was managing earlier All Cargo Ukrath is now managing Alcarpo Statistics. Hope that answers your question and the priorities remain to same focus on service quality enhancing business further and enhance shareholder value profitability.
Unidentified Participant
Okay, thank you. And my second question is. So regarding the 10.2% hike that has been effective this January.
operator
Sorry to interrupt Adarsh, there is a lot of background noise from your end.
Unidentified Participant
Am I audible now?
operator
Still when you’re speaking we can hear some disturbance from your side.
Unidentified Participant
How about now?
operator
Can you please use your handset?
Unidentified Participant
Yes, yes, I’m using my handset. Am I audible?
operator
Yeah. Please proceed now.
Unidentified Participant
Yeah. My second question was with the 10.2% price hike effective this January, what is your strategy to prevent volume leakage to competitors like delivery and how much of this increase will directly flow into the EBITDA margin for the coming quarters?
Ketan Kulkarni
I’ll take the first half your question and maybe Deepak can join me in the second half of the question. But the price Increase that we have announced becomes effective. From first of Jan, you have seen that there is a yield improvement which is essentially reflecting in the gross margin and the EBITDA margin improvement. We are very cognizant that the business operates on two important pillars. One is the yield pillar and the second is the volume pillar. So going ahead we will balance both of these. We have a data science team that constantly looks at swings that happen by product, by geography, by customer and whatever interventions are needed, they are proactively taken.
We are focused on both levers because we need to deliver growth. We are very, very clear on that front and we need to deliver profitable growth. We are very clear on the second aspect of the business. Over to you Deepak.
Deepak Pareek
Yeah, thanks Ketan. So pricing is very important for our business and we use as Ketan mentioned, the data science brand to price all our products in a very optimal manner which has market acceptability and all. If you see in our presentation on the express side we are given the price realization number which is gone up by 2%. The growth would be in will be slow but definitely the focus is there on that number to grow and whatever Delta will straightaway have an impact flow through in our ebitda. That’s on express and also on contract logistics.
It’s a slightly. It’s the engagement driven business where you would require a lot of contracting for a longer space where a lot of value add needs to be provided in the service. So we are doing that in the earlier question he covered on the AI bit on the service enhancement improvement levels that will also result in the delta on that business front also in a similar manner. That’s what we anticipate as we go to the next quarter.
Unidentified Participant
Got it. That answers my question. Thank you.
Deepak Pareek
Thank you.
operator
Thank you. The next question is from the line of Vikram Kotak from Crest Capital and Investments. Please go ahead.
Unidentified Participant
Thank you so much. Is I’m audible?
Ketan Kulkarni
You are?
Deepak Pareek
Yes,
Unidentified Participant
sure. Thank you. I have one question for Deepak on the very maintenance question about what is the current net worth as on December and what’s the net cash level for the company?
Deepak Pareek
So net cash level we have mentioned in the presentation which is 88 crores.
Unidentified Participant
Is that okay? Okay. And. And what’s the network as on December 25?
Deepak Pareek
Network would be 500 crore. So.
Unidentified Participant
Okay. My second question to Ketan on the slide 17 about Vision 2030. Can you take us through? You know what are the drivers for getting this growth till 2030? What are the synergy benefit you are seeing between the merger of AGL and Gati, both qualitative and quantitative. And are you taking any, what you say, inorganic growth in this vision statement? So three questions on the vision side. Thank you.
Ketan Kulkarni
No, please repeat your third question. I got your first.
Unidentified Participant
Yeah, okay. So Vision 2030, the targets which you said, is that any, Is that any inorganic side also? Only organic side. Thank you.
Ketan Kulkarni
Okay. Oh M and A and acquisition side. Exactly.
Unidentified Participant
Yeah, absolutely, absolutely.
Ketan Kulkarni
What we have projected here as of now is organic growth.
Unidentified Participant
Okay.
Ketan Kulkarni
So yeah, we are very clearly going to drive a growth strategy that’s based on our current platform and grow that organically. Drivers on the express side for that growth are going to be improvement in service quality based on tech. I kind of covered that earlier. What that does is allows us to go to customers, show value to them and ask for the volume at the right yield giving us a better flow through which is invested back into the business through infrastructure, tech, et cetera. So profitable growth, as I’ve said, I think twice earlier will be the key lever to drive this.
We will always be an asset light model that continues to be a focus. If you see our numbers you will see the cost reduction focus in general and admin expenses in employee expenses. So all these levers essentially resulting into what you see on the right hand side of this sheet. In terms of synergy, we have already drawn up a team that will look at customers on the CL side of the business and the express side of the business. A lot of conversations have already begun with large customers on how we can play integrated role that is much more deeper in their supply chain ecosystem and we are getting a lot of positive moves from the customer side.
I cannot name a customer but as the month of Jan itself we signed the major multinational third party logistics player that operates for large automotive MNC and now is consuming both services and was previously consuming such only one one aspect of our business.
Unidentified Participant
Right.
Ketan Kulkarni
Very, very focused on driving that part.
Unidentified Participant
Yeah, that’s a great answer. What would be a tech budget? Annual tech budget for us? Technology budget.
Deepak Pareek
So yeah, so as Chetan mentioned, we are not a capex led model. We are working on an OPEX model. So most our tech initiatives are under that framework where so in terms of putting in any new architecture, we have an outlay of 12 crore for the next financial year or full financial year.
Unidentified Participant
Super. Thank you. All the best to you. Thank you so much.
Ketan Kulkarni
Thank you for your question.
operator
Thank you. Before we take the next question, a reminder to all if you wish to ask a question please press star and one. The next question is from the line of RISHABH from RBSA Investment Managers llp. Please go ahead.
Rushabh G Shah
Hello, am I audible?
Ketan Kulkarni
Yes, you are. Please go ahead.
Rushabh G Shah
I just want to understand on the vision that you shared that you’re targeting 20% EBITDA, CAGR from FY25 base and for looking at a nine month number so far we’ve only grown at 9%. So what is, what is giving that confidence that we’ll be able to grow? Hello.
Deepak Pareek
Yeah, we got your. So you know this vision statement or strategy pack which was shared in our Analyst Meet covers three years primarily we’re looking at 27, 28 and eventually going. So this year we had, if you see the numbers which we shared, we have a 7% growth as of December and what we are, the measures which we are taken in this quarter or the previous quarter, which I also. We also shared in the earlier earnings call, the focus on service quality improvement enhancement. And on that regard certain investments had to be done in terms of operating costing enhancement.
So that has started giving us a result. Now if you see quarter on quarter express business has shown a growth and this quarter coming in, in the next quarter also though it will continue. So you know, business, express business and even contract logistics business, the growth has to be in a, in a steady manner which actually now the current year 26, we are confident of achieving that and next year and I think the strategy or roadblock will play us in a very faster manner. So 2728 is the year which we are very banking on very positively and we are optimistic that the target set those next year will be achieved.
Rushabh G Shah
And just want to understand a volume front in this Surface Express side. We have been hovering around a 3 lakh tons mark since I think many years. So what steps are we taking to increase volumes? Ultimately that will only drive our cost down. I understand that there will be a little bit of mixed change from your key accounts to your MSc MA accounts which are not reflecting volumes. And maybe that is reflected in the realization is that the strategy going forward?
Ketan Kulkarni
What is the strategy? Please come again with your second half of the question, please. I heard your first half which said volumes are a little stagnant at 3 lakhs per quarter.
Rushabh G Shah
Yeah. So I’m just trying to get a sense. Yeah, I’m audible.
Ketan Kulkarni
Yeah, very much, very much. Please go ahead.
Rushabh G Shah
Yeah, so just on the strategy part, like are the volumes tangled? Because the MSME part of the business is increasing and so that it doesn’t reflect in the tons per se, but it reflects in the higher realization. Is that the way the volumes are Stagnant.
Ketan Kulkarni
So volumes essentially usually dependent on number one, the pricing strategy that we are going to follow. Number two, the changes in the mix, as you rightly said. But we are very cognizant of, as I said earlier also in the call that volume growth and yield growth, the mix will be the one that will drive us towards the goal post of profitable growth. So that is very, very much a focus area. Secondly, a syndicated research that we obtain and so do most of the other players that operate in the segment. In the month of December we were the only ones, along with another to grow the market share.
We were one of the two, three other large players lost market share. And in the July, August, September quarter it was a similar instance where we were the ones to gain market share. Only player to gain market share. The other player was very, very marginal in 0.0x x percentages and three other players lost their market share. So within the organized sector, the top five that we constantly triangulate against, we are in a much, much stronger position. Since the month of July ending till December.
Rushabh G Shah
Whatever assumptions that we’ve done for FY28, EBITDA or the numbers, what is the impaired realization that your guys are targeting? Currently it is hovering at 11.6. That was shared in the DPT. So what is that number in FY28 that as per your projections?
Deepak Pareek
See, I would, I think I would like the numbers to show that since it is giving a forward indication, I would not like. But the percentage which you mentioned as the percentage which we are looking at to get to that, because it’s upstreaming of entire thing. If you do 10%, that’s. That will be a combination of both yield and volume taken together.
Rushabh G Shah
Predominantly volume LED or value LED growth. It is a given indication.
Deepak Pareek
So it will be a mix of both. If you can say 50, 50% can be attributed to both the Delta
Rushabh G Shah
and. What is the, you know, current pricing trends in the Kia console? I think earlier there is some steep discounting happening. Have the prices, you know, stabilized or are we seeing some price hikes even this year? What is the trend in key account pricing?
Ketan Kulkarni
Key accounts, Strategic, MSME and retail. We are committed to grow the yield across all the four levers. That is the guidance I can give you, of course to grow a key account yield by the factor compared to strategic or MSME or retail is much more difficult due to the volumes that key accounts give us. But as I said earlier in the call, with improving service quality, with the tech platform supporting that improved quality, a very, very strong network with the control tower operating. We are seeing huge increments in the key service quality metrics that we have in our QBRs quarterly business reviews that we have with Kea customers.
That is being appreciated and there is a reciprocal effect. So the management of yield will be driven across all the four verticals that we operate in.
Rushabh G Shah
Directionally. Can we expect Q4 to be better than Q3 given that generally in the past it has been seasonally a better quarter for us?
Deepak Pareek
Yes, definitely,
Ketan Kulkarni
definitely.
Rushabh G Shah
Thank you.
operator
Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question is from the line of Vedant S an individual investor. Please go ahead.
Unidentified Participant
Hello, I’m audible.
Ketan Kulkarni
Yes, you are Vedant.
Unidentified Participant
Yes sir. Thank you. Thank you. Thank you sir. Thank you for the opportunity. My first question is on consultative logistics business. So as we can see, the nine month FY26 revenue and EBITDA is showing, you know, strong growth. But as we come to Q3 there is a QQ dip. So is this a seasonality factor or does it reflect a delay in some kind of customer ramp up? And, and how are, how confident are we of, you know, sustaining these double digit margins going forward?
Ketan Kulkarni
I’ll take your second half of the. Question first, Vedant, and say we are very, very confident of improving the margins. In my opening remarks I said that the consultative logistics business was a bit muted as certain E Commerce clients deferred their expansion plans. But our underlying client relationship across E Commerce and automotive chemical is very, very strong and we are confident of a better quarter. As I even expressed for the express side of the business earlier to another of joining on the call.
Unidentified Participant
So are we seeing a better Q4 in this segment?
Ketan Kulkarni
Definitely.
Unidentified Participant
Okay, similar to that, I would like to. Can you talk a little bit more on the air Express? How are things looking as of now? What is the strategy to scale this up?
Ketan Kulkarni
Definitely. So the Air Express business, we have grown in terms of revenue in the nine month period and also in the quarter. On quarter there is a nudging double digit growth Q on Q. We could have, I would have personally liked it to be much higher. The strategy is definitely a strategy to focus on the business further. Going ahead into FY27 28 as we are exploring new opportunities, we are finding a lot of synergies with the ground express business. Now with consultative logistics being a part of the portfolio where we go to customers, we would like to be the single point of contact for a customer for all his express movement needs.
So this is a focus area for us and you can see the green in fact on slide 11 of the presentation for Air Express and a little bit of red on the surface side, but definitely a focus area.
Unidentified Participant
Thank you. I can clearly see the growth on slide 11. Next, can you express a bit on Q4 demand? How is the quarter 4 demand looking as of now? And can you put this into numbers of volumes? How is it looking? Any guidance for FY27?
Ketan Kulkarni
As Jan has started and we enter February, we’re very confident of how Q4 is going to shape up for us. As I said earlier, some of your other colleagues on the call also asked us about both The Express and CL business. How Q4 is going to look, how it’s going to be, is it going to be better? And the answer was definitive definitely. So I will stay with that answer. In terms of numbers, I will not be able to make a forward looking statement at this time but I will definitely download a huge dollop of confidence on the table for Q4 numbers.
Unidentified Participant
Okay. And no, no guidance for FY27 as well.
Ketan Kulkarni
So Slide 17 if you look at you will get indicative guidance on revenue margins. EBITDA if you Refer to slide 17.
Unidentified Participant
Sure. My last question would be. As we can see we are practicing an asset life strategy and there’s a good net cash position. So how are you prioritizing capital deployment between technology investment, network expansion and potential deleveraging? So and how will our, you know, return ratios look going forward?
Deepak Pareek
Yes, so you sounded right. Actually the three blocks which are deleveraging, ou enhancement and technology upgradation. These are the three blocks where we have to use the entire cache in a very judicious manner. Right now the allocation is done frugally across technology and we the and that giving us the relevant ROI on the AI and other front where the investment would require. I think that also is already factored in the budget which, which I mentioned ou enhanced. Ou modernization is some piece which we are looking but we had deferred it for next year. That could be in the region of 10 to 15 crore for next financial year.
Not in this, this year. On the deleveraging front, yes we would look at paring out some of the debt but I think we are we that is not much of a concern because that’s within the tolerance level. So we would do it in. In a phased manner over next two quarters. Actually if you see quarter three, the debt profile could be, sorry Q1 of next year the rate would be slightly lower as compared to what we are now. Yeah. So we will use it under These three buckets on a systematic manner. That’s what I would see.
Unidentified Participant
Okay, thank you. But what kind of investments are we looking in technological advancements? You know, every year or every quarter. And you put it into number.
Deepak Pareek
On a year we are looking at 12 crore number. On a quarter quarter it will be around 2 to 3 crore which would be spread across 5 to 6 key initiatives which you have a direct impact on service level improvements and better customer experience. These are the two themes of those investments would be.
Unidentified Participant
Thank you so much. That’s it. From my side. Thank you for your time and all the vision moving forward.
Deepak Pareek
Thank you. Thank you.
operator
Thank you. Ladies and gentlemen, a reminder to all the participants to ask a question, please press N1. The next question is from the line of Thomas, an individual investor. Please go ahead.
Unidentified Participant
Yes, hi, I just wanted to understand, when you say asset light, can you explain what that means? Because you have your own trucks, right? Or is this leased?
Deepak Pareek
We are on an asset light model, Thomas. We don’t own any of our trucks. We are. These are. That’s the model actually available on rent.
Unidentified Participant
Okay. So you’ve got. You lease it from third parties, is that right? And I just wanted to understand. Now I think in the last call you had mentioned that you’ll be taking price hikes and I’m just trying to understand. I thought I had read somewhere that some of the other players were cutting their prices. Did I misunderstand that or is it a universal thing that everyone is increasing their prices when it comes to express delivery?
Ketan Kulkarni
Yeah. Thomas, I will only talk for ourselves. We are definitely looking at yield enhancement measures resulting in profitable growth is what we have given a clear indication on the call.
Unidentified Participant
Okay. And even with these price hikes which you took in January, right?
Ketan Kulkarni
That’s right.
Unidentified Participant
Okay. And so far the discussions that you had with customers, you’re saying that that will lead to increasing volumes. Increased volumes.
Ketan Kulkarni
Yeah. The endeavor of the business is always to increase volume. As I said earlier on the call, on the basis of no compromise on the yield resulting in profitable growth.
Unidentified Participant
Okay, and just one last question. I mean in the. You know, right now with all these free trade agreements and all that, do you also assist the customers from the port onwards? Or do you is the contract after that.
Ketan Kulkarni
Sorry, please come again.
Unidentified Participant
Do you assist the customers? Like if it’s to import in the. From the 4th onwards, you take the. You assist the client or is it from their warehouses, from their plan? Do you do services even from port, is what I wanted to know.
Ketan Kulkarni
We have three service lines. One is the CL Line, which has warehousing as a core component and also has full truckload as a core component. Our express business is essentially part truckload where a truck is filled with multi client shipments. The business operates in a manner that wherever a customer or client wants us to pick up a shipment or deliver a shipment in either a full truckload or express movement, we are willing to do that. And if there is storage needed at any time during the moment of the shipment, that is also offered in our warehousing site, which is the CL site.
Various value added services are also embedded on the warehousing side where we could de stuff stuff, enhance the shipment by labeling, etc. So that’s how we will operate. Thomas Also, the group has four companies, all cargo global. In the merger, Demerger, the company that’s been formed, will look at FCL and lcl, which is the full container load and less than container load. The loads that move on ships coming in and out of ports internationally. That’s the company that’s focused on that.
Unidentified Participant
Okay. They will take that. Okay. Yeah. I just want to understand that. Okay. Thank you.
Ketan Kulkarni
Thank you.
operator
Thank you. As there are no further questions from the participants, I now hand the conference over to the Mr. Ketan Kulkarni for closing comments.
Ketan Kulkarni
Thank you. And it was a very, very insightful, knowledgeable conference for all of us. The questions were really of a very high order and Deepak and I are grateful once again for all of you to join on the call and wishing you all a very, very good evening. Thank you very much.
Deepak Pareek
Thank you everyone. Thank you.
operator
Thank you. On behalf of Algargo Logistics Ltd. That concludes this conference. Thank you all for joining us today and you may now disconnect your lines.
Ketan Kulkarni
Thank you.