Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Blue Dart Express Limited (NSE: BLUEDART) Q4 2026 Earnings Call dated May. 13, 2026
Corporate Participants:
Unidentified Speaker
MR. Tushar Gunderia — Head – Legal & Company Secretary
Sagar Patil — Chief Financial Officer
Analysts:
Mr. Kripashankar — Analyst
Unidentified Participant
Shiva Agarwal — Analyst
Mr. Anjul Agrawal — Analyst
Presentation:
Unidentified Speaker
So good afternoon everyone and welcome to the interaction with the senior management of Blue Dart Express. So firstly I would like to thank the management for giving us the opportunity to host the call. So today we have with us Mr. Sagar Patil, CFO and Mr. Tushar Gundevi, head of Legal Compliance and Company Secretary Blued Out Express. I would now hand over the call to the management for some opening comments and then we can take up the Q and A. Thank you. And over to you, sir.
MR. Tushar Gunderia — Head – Legal & Company Secretary
Yeah. Thank you so much. And good afternoon everybody. A very warm welcome to all of you. As you are aware, the Board of Directors of the company at its meeting held on 9th May 2026 approved the financial results of the company for the quarter and financial year ended 31st March 2026. The company reported revenue from operations of Rupees 6141 crore compared to Rupees 5720 crores. Into financial year 2425 and profit after tax for the year stood at Rupees 240 cr. For the quarter ended 31st March 2026 revenue from operations stood at Rupees 1533 crore while profit after tax stood at Rupees 43 crore.
In a fiscal year shaped by CH, challenging customer expectations and changing customer expectations. Continued growth in digital commerce, strong domestic consumption and a dynamic operating environment. Blue Dot Express delivered year on year revenue growth supported by sustained momentum across e Commerce and B2B. Surface Exp. Surface Exp Solutions. The company continued to strengthen its integrated air and ground network, enhance operational efficiency and expand solutions aligned to the needs of business across India.
The year also saw a dynamic cost and regulatory environment including the implementation of the wage code and related changes across labor and security frameworks. Blued out remained focused on compliance, employees, welfare, productivity enhancement and network efficiency. At the same time continuing to protect service quality and customer commitments. The results have already been uploaded on the Stockation website and has also been posted on the website of the company. I now hand over the call to Mr.
Sagar Patil, our CFO for further proceedings. Thank you.
Sagar Patil — Chief Financial Officer
Thank you. Good afternoon all. So. So we have closed this financial year with about 7% growth in revenue for the year and as well as the similar percentage increase in the EBT before the oneoff that we had of exceptional item on account of labor code this as far as the quarter is concerned we have similar growth which is about 7% rather 8% plus in the revenue while the there is a drop of about 17% in the comparable EBT before exceptional items for the quarter there is no exceptional item for this quarter.
So the company has continued its steady growth trajectory in the times where the product profile, seasonality, number of variables that act on not only with the customers but also in the external factors. So the company continues its profitable journey with of course mandate to improve the profitability from better so with that I I would request to open the floor for questions. Thanks.
Unidentified Speaker
Sure. Thank you so much for the opening comments. So we’ll start with the Q A. So anyone who has any question can please raise your hand or post it in the chat box below. So we’ll get started. So first question we’ll take from Mr. Kupashankar. Please go ahead.
Questions and Answers:
Mr. Kripashankar
Hello sir. Good evening.
MR. Tushar Gunderia
Good afternoon.
Mr. Kripashankar
Good afternoon sir. Thank you for the opportunity. So sir, first bookkeeping questions as of what would have been the tonnage for the quarter and for the full year sir, if you can share that first
Sagar Patil
So tonnage for the quarter is 359-913-359 1913 tons.
Mr. Kripashankar
Got it. So for the year I think it sums up to close to about 14 lakh 38,39,000 roundabout, right?
Sagar Patil
Yes.
Mr. Kripashankar
Okay. So so roughly about 7% growth in the overall tonnage which you mentioned. Just wanted to get a sensor. So now this quarter. Sorry also on the parcels, total parcels for the in millions
Sagar Patil
For the quarter were 96.17 million.
Mr. Kripashankar
Okay.
Sagar Patil
And for the year 403.98.
Mr. Kripashankar
Got it sir. Yeah.
Sagar Patil
Just to extend the way because you gave insight about the weight the shipment growth for the year is about 7% 7.1%
Mr. Kripashankar
For
Sagar Patil
The quarter it is 4.6%.
Mr. Kripashankar
Got it. So sir, just getting a sense you know this quarter around you did see a good growth coming in in E Commerce piece or at loss the industry for us. How did you see the E commerce piece evolving B2C part of it and overall also in ground express, what would have been the growth generally?
Sagar Patil
Yes. So E Commerce especially E Commerce on ground continues to be our breath driver including the surface on ground as such, while the E commerce on air has been steady, not very much, too much growth over there. But yeah E Commerce and ground remain the drivers for growth.
Mr. Kripashankar
So what I wanted to know was more on growth rates in the in the respective segments because you know overall the the growth Rate has been about 8% for the quarter so. And. And we did see that you had taken certain hikes from January onwards. But. But volume wise again, tonnage wise, it’s. It’s been fairly similar to your overall revenue growth as well. Just wanted to get a sense around if I were to further break it down. Is it because the ground and you know ground E commerce proportion has gone up which is why our realization are looking flattish
Sagar Patil
In terms of yield per kilo. Yes. When it comes to ground while the margins may be comparable but when it comes to per kilo or per shipment realization ground is lower than the. Than the air.
Mr. Kripashankar
Yeah. So. But we were able to pass or rather implement to a certain degree the price hikes which were taken from January onwards. Is. Is my understanding correct? And to what extent what has this result showcased? The extent of increase in realization because of the hikes which you have announced earlier?
Sagar Patil
Yes. So we did the GPI from 1st of January and it has been little better than what we had last year as such. So it has provided a positive impact helping us to mitigate the impact of the year on year depreciation inflation levels as such.
Mr. Kripashankar
Any percentage you want to share, Sir, Very difficult
Sagar Patil
To quote a specific percentage because it would the products as well as the underlying business channels would not be comparable as such. So. No, no,
Mr. Kripashankar
I. I was looking at it from a blended basis. While I understand what I’ll explain more on why I’m asking this specific thing sir. Because we understand that the underlying mix is the key reason why the realization is optically looking flattish. So. So just wanted to see you know if. If there is an absolute pass through of close to about 3 to 4% that would have been absorbed because of the mix changes is so if. If you can share the mix of B2C versus B2B or ground and air, that will be really helpful in assessing how what sort of a implementation has come through.
Sagar Patil
Yes, it would be better than 3 to 4% is what I can say again across the product it will be different again the price increases. While largely we announce in the beginning of the year certain customers would typically take some time. So in the first half of the year month on Monday in the number only improves. Especially some key customers would take a month or two more to again renegotiate or negotiate so that the ultimate realization of profit would be more than 4% the price increase. But again it will depend on product to production.
Mr. Kripashankar
Okay. And. And is it. Is it fair to assume? Sir, last question from my side. This is Fair to assume that uh, the margin sequential decline in margin, especially on EBITDA side of things is primarily because of this mix. And would it be possible to give what would be the growth in air in this quarter and this financial year and growth in ground this year and this this quarter in this financial year.
Sagar Patil
So from a from the product mix perspective, typically as you have seen, the shipments have grown slower. So that means our smaller products have grown slower as compared to the heavier products. So our smaller products will range from documents to air e Commerce as well as surface e commerce. So as I mentioned in one of the earlier calls, the heavier the shipment it becomes more in the nature of freight assets. So that’s where the margin realization can be lower whereas smaller the portion the realization of service the time definite or the time criticality improves.
So that is where the service element being better the price real not price but the margin realization becomes better. So ground continues to grow faster, more than 10%. There is an announcement happening. I’ll just put on a mute.
Unidentified Speaker
Yeah, we’ll take next question from Achal.
Sagar Patil
Just. Just one moment. It. Yeah, sorry for that. There was some internal announcement happening.
Unidentified Speaker
Right, no problem. We can take next question from Achal. Please go ahead.
Unidentified Participant
Yeah. Good evening sir. Thank you for the opportunity. Sir, if you could. Sorry I missed the initial part. If you could just remind us, in terms of the air versus ground, what has been the mix? Air versus surface.
Sagar Patil
The mix has been between air and ground. 60.
Unidentified Participant
40. 60% is air and 40 ground, sir. FY26.
Sagar Patil
Yes. Yes. And this is in value
Unidentified Participant
Or volume? Tub, sir.
Sagar Patil
And
Unidentified Participant
How would that be in terms of volume? Volume
Sagar Patil
Will be
Unidentified Participant
State board books
Sagar Patil
It. Yeah. No, so we don’t provide the breakup for the shipments or kilos between air and ground being sensitive information. But typically in air the number of shipments will be higher. Whereas in ground or the share of the shipments. Whereas in ground being a heavier loads, the number of kilos will be higher, the weights will be higher.
Unidentified Participant
Understood. And typically what is the price difference between ground? For the like to like distance, the air would be 3x the price of ground. Would that be a fair assumption?
Sagar Patil
Again, the price will be a function of whether you’re sending half kilo or say 30 kilos on a per
Unidentified Participant
Kg basis. I mean I’m saying for the same product. Yeah. In
Sagar Patil
Terms of the per kilogram I would say costing. From a middle mile point of view, the the ratio can be 1 is to 5.
Unidentified Participant
1 is to 5. Okay, understood sir. Sir, if you could help us in terms of B2B and B2C for FY26 what has been the
Sagar Patil
From a revenue point of view, 70:30, 70.3 in B2B and 29.7. So since both the lines are growing, one in surface, other one in the surface B2C this ratio has been pretty plus or minus 2 or 3% quarter on quarter.
Unidentified Participant
So this 70:30 is for fit
Sagar Patil
26 or fourth quarter
Unidentified Participant
You say fourth quarter
Sagar Patil
Is this 71 to 29. So pretty stable from revenue.
Unidentified Participant
Understood. And just a clarification in terms of the. Or you know in terms of the market share. If you could call out what would be our market share in the respective segment for air and the surface? Just a ballpark number
Sagar Patil
Will not have updated numbers. Typically market share comes with a certain lag. And again it’s a perceptive number. So I. I don’t have a readily or recent number for quoting as such.
Unidentified Participant
But what would be the last number you recall? Like for FY25 or
Sagar Patil
For documents we have seen the market share being 70 plus. Again this is about the organized and express service providers, not entire industry that may have different types of layers, et cetera. Again, when we talk about air and understood the products that we have defined by transit time and not necessarily mode of transport, it’s more of the. So even if there is something going from say Mumbai to Pune, if it is air product, it will have a separate, faster, smaller vehicle that will move on priority.
Whereas if it is a ground product there will be difference of few hours if not a day even between that kind of lane. But for us it’s a air network not going by on air. Essentially this air by air we mean a door to door multimodal kind of transport where first my last mile will be road, big or small and middle mile in many cases will be air. So that’s very loosely we call it as air for discussion but we do not really treat it as a segmented part of the business essentially.
Unidentified Participant
Fair point. Just to clarify, B2C 29.7% for FY26. Does this include the E. Com, the bulk of the E. Com business here?
Sagar Patil
Yes, it is largely ecom business.
Unidentified Participant
So B2C is largely E. Com.
Sagar Patil
Yes, it’s only. Rather it is only E. Com.
Unidentified Participant
Okay, Understood, understood. And just a question on ecom business. You know historically we’ve been like what is the mix for ecom business for FY26? Sorry, I forgot to ask that first. FY26 Ecom revenue mix.
Sagar Patil
So between air and surface it could be like 17 to 1217 is to 12 out of this 29.7%.
Unidentified Participant
Okay, so when you say B2C is actually Ecom business.
Sagar Patil
Yes, yes.
Unidentified Participant
Okay, understood. And in terms of the, you know, the freighter utilization, if you could guide, sir.
Sagar Patil
So it continues to be at around 85% on a pallet utilization level. We, we use a good amount of commercial air capacity as well. And we tend to fly the flights only when we have good load, which is there in most of the weekdays. Yeah, so it remains at 85%. 85%. Why? Because there are also positioning flights. So that takes it down. But for the main sectors it would be well above 90%. 95%.
Unidentified Participant
Understood, understood. And in terms of the margins, how do we see margins? I mean, you know, we have swung between 13 and a half to 17 and a half percent in last four quarters. So. So how do we look at this margin is from an annual perspective? 15, 15 and a half. What we have delivered in last two years is, is, is the number we can, we can pencil in or you think it can, or what are the margin drivers from here on?
Sagar Patil
You’re talking about standalone margins, right? Consolidated
Unidentified Participant
Margin, sir. Consolidated consolidated margin.
Sagar Patil
EBITDA margin goes below that. EBITDA before depreciation. So far as depreciation is a major part of having a big setup of air as well as on the ground that we have. Yes, the quarter on quarter comes with variations with peak season kicking in typically in second half of the year. So we, our focus is normally to ensure a year on yearly margin. So while we try to operate at a efficiency when the loads are low, the focus is on also building up capacity in case of the peak loads, wherein the additional volumes also does pay for that cost increase during that temporary period that we look at.
And then after that peak is over, then also the focus is on again optimizing because revenues the loads also do not immediately come down in some pockets with some customers, there are again volume of surges that come in the month of December, January. So the function, I mean the business is functioning function of balancing air and ground, B2C and B2B as well as the big packages and small packages or documents. You cross utilizing the capacities efficiently and keep on flexing that capacity. So the focus is largely on a yearly number on quarter on quarter.
There can be ups and downs depending on how we build up the resources and how the volume for different products or, or even different customers come in. Because different customers will have different margin levels depending on their product mix or the lane mix also for that matter.
Unidentified Speaker
Yeah, so There are some more questions. So sir, one question which is, which has come in the chat on ATF pricing. If you can just highlight what’s the impact of ATF movement and whether we have passed it on. Just. Just some color on that.
Sagar Patil
Yes. So while ATF prices started going up in the month of March till end of March because we have fuel surcharge that is announced at the beginning of the month, our March 1st didn’t go up significantly. Our purchase prices are also typically agreed in the beginning of the month. So for the quarter we didn’t have any significant impact from pure ATF and brain point of view. While there were some cost impact in terms of the availability of local fleet or at times manpower also in that month. So the impact in the financials will come starting from April.
As you know we have fuel surcharge mechanism where any increase or drop in print is largely compensated or neutralized with the between ATF and fuel surcharge so far as ATF is moving in tandem with print and of course with the currency fluctuation. Also we have surcharge for both fuel as well as currency in our commercial. So to an extent those, those that volatility is neutralized largely.
Unidentified Speaker
Okay, so you basically are not looking at any impact coming in because of the ATF price movement in the first quarter.
Sagar Patil
No,
Unidentified Speaker
Got it. You
Sagar Patil
Are going to say first quarter of calendar year in the first. No,
Unidentified Speaker
Financial year. April to June.
Sagar Patil
Yeah, financial year there will be impact but from profitability point of view it is largely neutralized.
Unidentified Speaker
Got it. Got it. And also one question was on the volume growth. Now what kind of volume growth we are looking in this financial year? FY27 considering the growth which we have done in 26 and considering looking at the market scenario. If you can just indicate what sort of growth we could look at in the air side as well as on the ground side
Sagar Patil
And without really giving the color of forward looking statement. But this is a business which is largely a network business distributed all across India. So any significant upsurge or even shortfall in margin can impact either service quality or the profitability. Either way if there is big increase in volume it might be seen as profitable. But then service quality impact also can be there. So we mainly look at optimizing the capacities with respect to the. The. The demand that comes from the customers.
And then we tend to be to balance between what volumes we can ask from the customers versus what price we can get at. So the approach is to more balance to ensure the profitability in absolute terms.
Unidentified Speaker
Got it. Just one follow up on that actually. So ground you mentioned it’s around 40% now which used to be around say 30, 32% few quarters back. So now, now with the ground share increasing and the target would be more like say 48, 50%. Right. So do we see the growth actually coming in much better now because ground share will be much higher which is the fast growing segment.
Sagar Patil
Yes, I mean ground is the growth engine for us and the share of ground has been going up. However with the ground largely the costs are also variable. I mean the all the middle mile, the the line also are variable. Even the first mile, last mile also largely variable. We work with a very large range of vendors all across there. So they unlike Air where once you have investment in place in assets, the incremental rate of return is better. That is not the case with ground. So yes, while ground is the remainder growth engine, it may not result in a volume increase there may not result in a very dramatic increase in the profitability.
Unidentified Speaker
Got it. We’ll take a follow up from Krupa Shankar, please go ahead.
Mr. Kripashankar
So just you know questioning back on what you just commented. You’ve added couple of infrastructure with respect to new hubs on the ground side of things. And, and you know given the recency of the addition there would have been certain overhead expenses on the ground side of things. Now if you’re expecting ramp up the margin profile should improve with in tandem with the utilization of those hubs. So why, why are you saying that the profitability improvement may not be to the higher extent.
Sagar Patil
So the, so the capacities that we added and there is a big facility we have started last year in, in Gurgaon near Delhi. Now to an extent this is, yes this, this will take care of next maybe up to nine years of growth in that lane but it is still one of the names one of the cities. Secondly, this facility was a combination of not only growth but also consolidation of number of facilities. So it’s not that it, it’s a one big investment from overall, from company point of view within the overall business.
This is still a, a small spurt of growth in that particular region comes with consolidation. So yes there will be capacity available that will get utilized over the next few years. And incidentally there also we have a phase wise approach where the entire commitment has not been done in in one go. There will be phase commitment in two phases. So it’s not one big investment put in over there. Also as far as ground is concerned our facilities are express facilities, not warehousing kind of facilities.
So the turnover of volumes there is quite significant. So it’s not a very big fixed cost that has been added that will pay off in a long term in the overall number of kilos tons that we handle. This will not be even 5 or 10% of the all country volumes even for that one big investment that we have put in place as such. So no, I mean of course it will have a positive impact but not as significant that it can make a big change in the overall company profitability.
Mr. Kripashankar
Got it, got it. Second question was on the current ongoing challenges in the West Asia crisis. Sir, we do understand that post Covid you had carried out few charters to specific destinations primarily because of the need which has arised and given the discrepancy which has come in on shipping side of things. Are you seeing charter options opening up and would you be taking it up or would you, would it be in the purview of dhl?
Sagar Patil
No. So we, it’s. It’s up to us as rudat and if there are such opportunities so far we don’t see a big increase that the domestic charters keep on happening with few customers continue recur. I mean repeating and sometimes one time charter. So we may not see that as of now at least we don’t have that big indication of new opportunities coming for charters because the passenger airlines also are. I mean it’s, it’s moving internationally. Uh, so. So. So while it was a good uh. Uh. Good I would say enabler or help in the COVID periods as of now we don’t see any indication.
While of course we keep on exploring those cases.
Mr. Kripashankar
Got it sir, Got it. That’s it from my side. Thank you for answering the questions. Thank
Unidentified Speaker
You. I will take next question from shivam.
Shiva Agarwal
Yeah hi. Thank you sir. Giving for the opportunity. So just wanted to know what has impacted the EBITDA margin this quarter. Is. Is the volume change mix or have impacted the EBITDA margin or something else.
Sagar Patil
Yeah, as you said. Yeah, yeah. So one would be that as you said that
Shiva Agarwal
Because of the heavier volume.
Sagar Patil
Yes. You
Shiva Agarwal
Continue please.
Sagar Patil
One reason would be that and also there would be. I mean there is nothing as one single item that is significant. We did space, I would say some increase in the costs of local vehicle hiring especially in the month of March where fewer related apprehensions were coming in some parts of the city. So we had to really also hire from market. So to some extent there was increase in costs there. We also have invested in some of our functions, front end functions like sales and some quality related functions.
So sometime during the last year. So as compared to last year same quarter it would look like a higher employee cost impact as well. So you know 2 crores here, 3 crores here all combined put together are totaling up to about 1015 crores of rupees. But there is no exceptional or extraordinary item that is impacted. It’s more of a timing that has come in this quarter as compared to the earlier quarter. But yes you are. You can also be said right where the smaller growth in the shipments versus weight will impact to an extent the realized profitability for a world.
Shiva Agarwal
Okay, got it sir. Thank you.
Unidentified Speaker
So we’ll take one question from the chat or box. So is the higher freight cost also leading to customers choosing non express shipments versus our offerings? Any any color on that sir,
Sagar Patil
It can sometimes happen. Like for Ecom we provide services for both options for both by air as well as by ground. So sometimes the customer scan the same customer who is giving us both on air as well as ground can also at times reallocate based on their priorities or then the nature of shipment. How discretionary your critical it is from. From. From that time point of view. And again as the ground becomes more and more efficient the difference between air and ground can be not more than say 24 or at the most 48 hours depending on the lane.
So as the customers become better enabled to. To. To plan for. To manage their flow. I mean flow of the shipments across the country. They will. They are. They are also able to flex to choose between Buddha ground or product air for that matter. So yes, that can also have an impact here.
Unidentified Speaker
Got it. We’ll take one question from the the queue from Anshul Agarwal. Please go ahead.
Sagar Patil
Yes.
Mr. Anjul Agrawal
Hi. Thank you for the opportunity. Just a bookkeeping question CapEx has brought up in FY26. I’m. I believe this is on the back of the ground hubs that we sort of added to our network. Are there any similar plans to add or do some heavy capex in the coming year?
Sagar Patil
So if you look at the console numbers our capex for the year is almost 360 crores. Whereas standalone it is 120 crores. In console out of 360 crores 200 crores is mainly coming from aircraft which is in the nature of engine or aircraft maintenance. These are the servicing or check C check D check B check that we do which can add to the efficiency or usability or cycles of aircraft beyond a year. So it is booked as capex and then it is depreciated over A period of utilization. So barring that 120 crores.
Yes there will be element of the ground facility but again it will not be that very significant. Not more than 30% of this total capex that you are talking about. Not even as much. And in terms of the the fresh. Yes we do have plans to strengthen the capacities in different parts of the country be it Mumbai or south to an extent is east we did in last few years. North also we have added in last couple of years. So for us I mean this capex is also more is light up part of opex. So if you find year on year the the capex amount will be similar to the depreciation amount that we have if you exclude the ROU asset part of it as such.
But capex can come as a big spot in the capex. I mean as far as aircraft is concerned but it is not aircraft. This can be engine or some major components as a part of the regular maintenance of the aircraft.
Mr. Anjul Agrawal
Got it. So just to follow up on that. So this 200 crores of aircraft maintenance servicing engine this would be recurring in nature. Is that assumption correct? Would this repeat inside one or two years? Again
Sagar Patil
Yes. Yes. So it can be 100 crore in one year or maybe another 200 crores in another year. So typically 100 to 150 crores every year Even in a without any new capacity addition in aircraft this will be a. This will be a part of cap capital expenditure.
Mr. Anjul Agrawal
Correct. And since ground continues to grow faster than air a similar number in ground capex can be assumed the one that we have done in the current year.
Sagar Patil
Yes. So in. In. In standalone entity the capex of 120 crores as normal capex and rou asset of 400 crores. This type of so largely when you add the ground facilities major addition is in in terms of the lease assets so ROU will find more and normal capex will be relatively smaller number and even this number of 120crores can be as good as an annual capex or OPEX capex that will keep on coming.
Mr. Anjul Agrawal
Got it sir, any comment on. We’ve given the guidance of maintaining the PBIT PBT margins of around 7 between 7 and 8% and I think we are. We are lagging that guidance by some distance. Any. Any color on or. Or any guidance on when we should think about reaching this
Sagar Patil
As soon as possible. That’s what we’ll try but otherwise any specific guidance will be like forward looking. But yes, the effort is always to maximize in the peak and optimize in the other quarters in order to ensure a bit but as better number as possible for the year.
Mr. Anjul Agrawal
Thank you. That’s it from man. All the very best for the next year.
Unidentified Speaker
We’ll take next question from Ankita.
Sagar Patil
Hold on.
Unidentified Speaker
Yeah. Yeah.
Unidentified Participant
Thank you. Thank you for taking the question. Sir, I have missed. Have you shared the shipment and tonnage data number for the fourth quarter?
Sagar Patil
Yes, you can note down quickly. Shipments 96.17 million and Danesh 359913 tons. 359913. Yes. 360,000.
Unidentified Participant
Okay. Okay, got it. Secondly, sir, how has been the volume growth in air and surface for the full year? FY20. FY26
Sagar Patil
Here the ship the weights have gone up by about 8.8% and in ground 6.9%.
Unidentified Participant
6.9%.
Sagar Patil
Again these are not necessarily air as a mode. Air is more of a multi model. So some of it can also go on road, some of it will go on commercial airline and also some of it will go on pz. So air and ground is what we loosely used internally for our calling or product which are transit time based. But these do not necessarily in the segmented or the main mode of transportation. There.
Unidentified Participant
Got it. Sir. Has the surface volume growth slowed down from what we have seen in FY25 earlier? Has this growth rate come off for us? 7% growth that you’re seeing on surface. Is this slower than what we have witnessed in 25?
Sagar Patil
I think would be slower because we have the customer composition there has gone undergone some change. The shipment per kg for ground surface has I think has come down as compared to earlier. The great approach.
Unidentified Participant
Okay, so means we are handling more lower weight cargo which means we would. That is also one of the reason why our B2C shipments have gone up. Means we are handling more lower weight maybe E Commerce shipment on surface. Which is the reason why overall growth would have been slow.
Sagar Patil
So the B2B movement of E Commerce. I mean not ecom as a last mile delivery for the individual ship buyers from the. Got it. Yeah. But more of a stores to store or warehouse to store. Whereas to outsource kind of movement that would have gone up for at a smaller weight break level weight
Unidentified Participant
Breakeven. Correct. Got it. Okay. And you see this trend to continue or to reverse.
Sagar Patil
Can’t say. I mean on ground typically unlike where when you move smaller shipments the cost of handling also becomes higher. So unless there is a better RPK we may or may not be very keen on unless we get a better realization over there so we’ll be looking very critically on this part for the individual customers or at a trade line level. So and we’ll. We. I mean we. We keep on optimizing continuously looking at the customers profitability as well as their lane profitability. So if there is a need to optimize the.
I mean there is no definite plan in terms of managing the kps. But it’s more dependent on the profitability the trade is involved as such. So this can’t be necessarily said to be a trend. The effort will also be to build up more kilos because that includes the efficiency the handling cost per shipment typically will be. Upper kilo will be lower as compared to heavier shipment.
Unidentified Participant
Got it. In terms of profitability, given that X of your network increased cost,
Sagar Patil
Has
Unidentified Participant
Your segmental profitability in both air and surface
Sagar Patil
Has
Unidentified Participant
Been maintained or has it gone down?
Sagar Patil
So we. We don’t do segmented results but yeah, internally when we have our own subjective way of our internal rules for allocations, the the. The profitability typically will will change across those individual products. Also significantly given the seasonalities that we have some of the network or most part of the network, both first mile as well as middle mile. First my last middle mile are shared depending on whether some middle mile gets shared depending on whether it is air or ground. First mile last mile gets shared depending on whether it is a heavy person or a lighter parcel or document.
So depending on the flavor of even month for that matter, the margins can go significantly up and down. As far as full year averaged out number is concerned we see the profitability is more or less in tandem with each other and moving in tandem with the overall profitability. No, no different variation across either the segment type or the product.
Unidentified Participant
Okay, got it. Sir. Last two questions on B2C segment. How much percentage of our volumes comes from large platforms and how much would be coming from individual D2C customers? And second is how much percentage of our air cargo is moved on our own freighters versus other commercial airline belly space.
Sagar Patil
Very small percentage from large platform. Largely our customer base is consisting of either D2C or sometimes aggregators. Again at an individual level customers single customer would not have a significant share of business. Customers are also do use a sweetie. I would say it matters in terms of ensuring the service quality there. What was the second question?
Unidentified Participant
How much percentage of air cargo is moved on our own freighters versus other commercial airline belly space?
Sagar Patil
Yeah, almost one third of the airload would go on commercial. Again it’s a mix of both the lanes where we operate our own aircraft but at the same time there are 25 odd additional airports where we don’t fly but we carry on the commercial airline. So overall about 2/3 of the volumes are managed by on our own airlines aircraft and 1/3 is with the commercial airlines. Commercial air plus I would say road but yeah commercial air is the major part of it.
Unidentified Participant
Got it. Thank you sir. Thank you and all the best.
Sagar Patil
Thank you.
Unidentified Participant
Thanks
Unidentified Speaker
Sir. We’ll take this last question from Koshi. Please go ahead.
Unidentified Participant
Hello. Thank you for the opportunity. Just wanted to get some clarity on the capex. You mentioned that around 150 crore. 100 to 150 crore is a aircraft kind of the maintenance or the engine capex that you have to keep doing on a recurring basis and on the ground somewhere around 120 crore which is the current year figure would be a year on year basis. Is that correct?
Sagar Patil
Yes, yes. So 120 that I mentioned is standalone so this will include both our IT capex as well as the others. I mean when the accounts come in you’ll get the more complete breakup but yes 150 crores is you can say average out number for the current fleet which is more like an annual capex.
Unidentified Participant
Okay. Any other specific capex plans that are being planned for FY27? Any specific segment that we are targeting for additional capex?
Sagar Patil
No not as a segment or a new line of business as of now but then it this is largely in automations so putting up solders or mhe material handling equipments and also IT related spend both on the largely on of course the the hardware and some part of on building the applications etc. So no, no expansion related capex but these are more in the nature of renewal, replacement and to some extent expansion with in line with the organic growth in business.
Unidentified Participant
Okay, thank you so much.
Sagar Patil
Thank you.
MR. Tushar Gunderia
Yeah.
Unidentified Speaker
Oh yeah yeah
MR. Tushar Gunderia
Yeah.
Unidentified Speaker
So I yeah so those were the key questions so I would just hand over the call back to you for any closing comments and then we can close call.
MR. Tushar Gunderia
Nothing specific but thank you so much. I hope we have been able to you know answer whatever the questions investors had and our endeavor would be always to have this periodic conversation with the investors to have more disclosures. Thank you.
Unidentified Speaker
Thank you so much. Thank you. Thank you for signing up.
MR. Tushar Gunderia
Thank you all.
Unidentified Speaker
Thank you.