VRL Logistics Limited (NSE: VRLLOG) Q4 2026 Earnings Call dated May. 19, 2026
Corporate Participants:
Sunil Nalavadi — Chief Financial Officer
Analysts:
Alok Deora — Analyst
Krupashankar NJ — Analyst
Pranav Doshi — Analyst
Ankita Shah — Analyst
Anshul Agrawal — Analyst
Unidentified Participant
Gaurav Sanjay Gandhi — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to VRL Logistics Limited Q4 FY26 earning conference call hosted by Motila Loswal Financial Services Limited this conference call may contain forward looking statement about the company which are based on the beliefs, opinions and expectation of the company as on date of this call. These statements are not the guarantee of future performance and involve risk and uncertainties that are difficult to predict. As a reminder all participant line will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation.
Conclude should you need assistant 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. I now hand the conference over to Mr. Alok Deora from Motilal Oswal. Thank you. And over to you sir.
Alok Deora — Analyst
Thank you. Good morning everyone and welcome to the Q4FY26 earnings conference call of VRL Logistics. So today we have with us Mr. Sunil Nalavadi, the CFO of the company. I will now hand over the call to Mr. Nalavadi to provide some opening comments and then we can take up the Q and A. Thank you. And over to you sir.
Sunil Nalavadi — Chief Financial Officer
Yeah thank you Alexdeep and good morning to everyone. I warmly welcome all of you to the earnings conference call of our company to discuss the financial and operational performance for the fourth quarter and year ended. FY26 on the onset I would like to inform you that we have completed 50 years of service in the logistics industry. Our promoter Dr. Vijay Sankeshwar started this company in the year 1976 with self driven single vehicle with one route. Today the company is operating with 6000 owned vehicles along with the hired vehicles as well.
Today the operations of this company spread across 24 states and 4 union territories with around 1300 branch network. We cater to all the complexity segments with genre customer base. We are very much thankful to all those who supported us in this journey. I’m
Operator
Sorry to interrupt you sir but your voice is muffling.
Sunil Nalavadi — Chief Financial Officer
Shall I repeat it? Hello.
Operator
Yes. Yes. Just like few. A few seconds. That was muffling like five to ten seconds.
Sunil Nalavadi — Chief Financial Officer
Yeah. See on the onset I would like to inform you that we have completed 50 years of service in the logistics industry. Our founder and promoter Dr. Vijay Singh started this company in the year 1976 with self driven single vehicle with one route. Today the company is operating with 6000 owned vehicles along with the hired vehicles as well. Today the operations of the company spread across 24 states and 4 Indian territories. With around 1,300 branch network, we cater to all the commodity segments with 10 lakh plus customer base.
We are very much thankful to all those who supported us in this journey. I hope everyone has had an opportunity to review our investor presentation which has been uploaded along with our financial results. We started this financial year with a strong background of freight rationalization and the strategic pricing reforms including the identification and exits from the low margin businesses. The year started with a deficit of 13% in our tonnail growth in quarter one and for the full year we are in a position to restrict the deficit in tonnage growth by 7%.
We achieved the year on year growth in tonnage by around 3% in quarter four. The improvement in tonnage handling on quarterly basis in the current year, proving our efforts to increase in tonnage by adopting the right pricing policy. We are taking many steps to increase in volumes especially by expansion in our network by opening new branches in untapped markets, improvement in service quality by focusing more on own infrastructure facilities which in turn result in the better control of our services, route optimizations to reduce the lead time to deliver the goods and having the lowest claim ratio as compared to other operators in the industry when it comes to the financial performance of the company, the quarter four total income stood at rupees 859 crores up by around 6% year on year and grew 3% sequentially driven by improved realizations, new client additions and the return of some previously lost accounts.
Tonnage saw a quarter on quarter improvement supported by new account additions, growth in tonnage from the existing customers and return of volume following contract restructuring undertaken in last year. Our daily tonnage crossed 11,500 plus tons during the quarter reflecting improving demand trends. The realization per ton stood at around 8147 rupees increased by approximately around 3% year on year. Reflecting freight rate rationalization and fruit mix. We were able to maintain realizations with sequential revenue improvement by 3%.
The yield improvement remains a key profitable driver and reinforces our focus on sustainable margin led growth rather than volume led expansion. On profitability, the EBITDA margin stood at around 21.4% down by around 190 basis points year on year. I would like to inform you that the quarter four of FY25 was an exceptional quarter with a margin of 23% plus on account of our new initiatives such as freight rate rationalization, route optimization etc were introduced. The margins in the current quarter compared to last year were impacted due to increase in Laurier Service by around 1.7, 3% increase in salary by around 0.74% and increase in vehicle repairs and maintenance by around 0.85%.
Whereas the fuel cost which is reduced by around 1.77% to the revenue, the fuel cost remain well controlled. In the current year, fuel cost as a percentage to total income declined by around 24% from 25.7% due to decline in fuel consumption quantity and cost is increased to some extent on account of increase in the fuel procure cost per liter from rupees 84.5 to 85 rupees. 54 Pisa due to decrease in purchase quantity from the refinery applied through our own pumps, the quantity directly purchased from the refineries is reduced from 41% to 36%.
We restricted the bulk purchase quantity on account of increase in the bulk purchase rates. The lower area charges increased on account of more H Vac engaged to carry the additional tenants during the current quarter and also due to increase in the lorry here rate. The employee cost had a percentage to total income increase from 17% to around 17.91% and vehicle running expenses increased from 4.9% to 5.8% on account of annual increments implemented for August 25 and higher driver incentives paid during the current quarter.
We continue to view these increases as investments in our people, particularly given the industry wide shortage of skilled drivers where VRL’s on road driver model remains a key competitive advantage. With these changes during the current quarter also we are in a position to achieve the 21% plus EBITDA margins. The sequential EBITDA margin is increased by around 48 basis points supported by improved realization and strict cost controls and better asset utilizations and profit for the current quarter stood at around 72 crores for the full year FY26 our total income stood at around 3245 crores.
EBITDA margin stood at around 20.8% expanded by nearly 190 basis points year on year supported by a 10% improvement in realizations and sustained cost efficiencies. The profit for the year is increased to rupees 237 crores as against the last year profit of rupees 183 crores with a robust growth of around 29%. The higher profits resulted into increase in cash flows from operation to rupees 668 crores from 583 crores in the last financial year. The cash flows of the company have been effectively utilized for the purpose of capital expenditure to the tune of Rs 298 crores mainly for the purpose of addition of commercial vehicles to the extent of rupees 101 crores and rupees 165 crores has been invested into purchase of land and building facilities in the critical locations of our operations.
The cash flow is 175 crores also utilized for the payment of dividend in the current year our balance sheet remains strong. Net debt stood at around 440 crores as of March 26. And also the trade receivables to turnover ratio is at around 36 times of the revenue which will work out the receivable days around 10 days among the lowest in the industry. Underlining the strength of our collection mechanism and diversified customer base of over 10 lakh GST regional customers. Due to the higher returns, the return on capital employed of the company increased to 25% from 21% and return on equity is increased from 21% from 18%.
Operationally, our network continue to scale. As of March 26 we operate around 1293 branches and 50 transhipment hubs across 24 states and 4 Indian territories. The fleet rationalization continues with older vehicles being scrapped and utilization of own assets improving. Around 77% of our fleet is totally debt free and 14% is fully depreciated providing strong operating leverage. Our strategic priorities remain unchanged, profitable and volume growth, disciplined cost management and tight working capital control.
We are actively managing the risk posed by current geographical development and potential thereafter cause volatility in fuel rates and other input costs. Looking ahead while near term macro uncertainties purchase, we remain optimistic. Improving demand conditions, stronger marketing initiatives, lead rationalization and expansion in unsteady underpenetrated geographies position to well drive the gradual value recovery while sustaining the profitability. With this I would like to conclude initial remarks.
Now I request participants to open for question and answers.
Questions and Answers:
Operator
Thank you sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question by press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may Press Star and 2. Participants are requested to use handsets only while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. We have a first question from Krupashankar NJ with evidence spark. Please go ahead.
Krupashankar NJ
Hello, Good morning and thank you for the opportunity. Sir.
Operator
So my first
Krupashankar NJ
Question. So first question is good to see that the volume growth is coming back on track and then you have registered a first YoY growth during the quarter just wanted to get a sense around how do you expect the volume growth momentum in FY27 and what are the efforts you’re taking towards boosting volumes on that front, sir?
Sunil Nalavadi
Yeah, in terms of volume growth we are expecting to grow at least around 6 to 7% for the full year basis. And we are expecting that at least around 2% quarterly growth on a sequential basis even for the financial year 27. So on a full year basis the expectation is around 6 to 7%.
Krupashankar NJ
And what are the efforts you’re taking towards boosting those volumes? I think the efforts
Sunil Nalavadi
Is basically our rate rationalization exercise is already completed and the customers are very well aware about the structure of the rates and other things. And we are pushing a lot of marketing activities and we are identifying the go of the lost customers and all. And just to inform that we are getting a lot of new customers also. Especially wherever we are opening the new branches, new geographies, we are adding the new customers as well. So that is giving lot of confidence for us to increase the volumes.
Krupashankar NJ
The diesel prices are also going up, right? Are you planning to further increase your prices to offset that impact of higher fuel cost?
Sunil Nalavadi
Yeah, of course. Diesel prices in are increasing and it is increasing to every operators and ultimately the cost, whatever additional cost will come that needs to be passed on to the customers. And during the recent moment, whatever the rate increase is there. So to pass it on that expenses we have not increased the rate, but some of the selective routes wherever we are offering, you know, some kind of a discount and wherever actually the volume growths are coming, we identified such routes. And wherever the rate week is required, we have already done it.
So for the month of April also we saw that the year on year volume growth is around 8% and we are maintaining EBITDA percentage in the range of around 21% plus.
Krupashankar NJ
Understood. But given the fact that there is going to be further increase on selective routes, does that put pressure around the volume growth expectations? Because the hikes are have been quite recent. Right. And then just to get a sense, how do you
Sunil Nalavadi
Volume growth pressure is not on account of the increase in fuel rate, but basically what’s happening. Some of the commodities demands are affecting, for example the products which are related to the petrochemicals and oil which are directly related to the crude oil, say for example plastic products and all we are already saying, you know, acknowledging in the market that the demand of such product is coming down. So those things may impact on the volume, but because of the increase in freight rates and all because of increasing fuel rates.
So everybody in the market or each and every operator has to take up all that. It has to be pass it on to the customer.
Krupashankar NJ
Understood, Understood. And I could also see in the presentation that you’re not currently availing the direct procurement due to increase in bulk fuel rates. Just wanted to get a sense that you know do you see any while you have guided that the first quarter margins will be moving at around 21% but do you see an impact on your margins because of the proportional bulk supply coming down?
Sunil Nalavadi
Yeah, to that extent EBITDA level definitely we are having, you know we are very flexible to maintain it around 20% level. So some basis points may impact on the margin because of this facility had been withdrawn. The bulk purchase is already lost.
Krupashankar NJ
The last question from my side if I may sir, just wanted to get a sense around capex which you will be incurring in FY27 towards fleet and any hubs which which you will be adding during the year.
Sunil Nalavadi
Yeah, we identified around 2, 3 locations now which are in the pipeline especially places like Nagpur and Raipur. Is there some additional locations? We are looking but overall capital expenditure will be around 300 crores for the three year now in the current year also we invested almost around 300 crores out of that around 100 crore for the vehicle and remaining most of the capital expenditures for the land and building facilities. And even going forward also the mix will be like that around 100 and 150 crores for the vehicles and around 200 plus crores for land and building.
So on a full year basis we are expecting around 300 to 350 crores capital expenditure.
Krupashankar NJ
Thank you for answering my questions. I’ll get back at the chat.
Operator
Thank you. Ladies and gentlemen, anyone who wishes to ask a question my press star and one on the touchstone telephone. Our next question comes from the line of Pranav Doshi from Ardeko Asset Management. Please go ahead.
Pranav Doshi
Yeah, thanks for the opportunity and congratulations for the you know good set of numbers. So you know on the capex. Can you hear me? Yeah please. So you know as you just explained that going forward the capex will be around 100 crore rupees on the vehicle and the 200 crore rupees on the land and buildings or the warehousing. In the last three years, you know in 2025 we have done a huge capex of 400 crore plus where we see our recycling, you know the refinancing or the vital purchase cycle coming back into the picture in 2827 or five years, seven years down the line.
No, this capital
Sunil Nalavadi
Expenditure is a continuous cycle. See now what happened. The government has put restriction of the life of the vehicle for 15 years. Even though it is not mandatory. But there are a lot of restrictions to operate the vehicles which are crossing more than 15 years. That’s the reason whatever capacity will cross the 15 years, we need to add those vehicles. And apart from that, whatever tonnage growth will come to carry the additional tonnage growth. Also we need to add the vehicle capacity.
Pranav Doshi
So normally what do we replace the vehicle in five to seven years? Or we keep it till, you know, end of the life, 15 years. In our fleet,
Sunil Nalavadi
Normally end of the Life up to 15 years.
Pranav Doshi
Okay, great. Only in certain
Sunil Nalavadi
Circumstances which are outdated or major accident happens, such vehicles will will be scrapped even before the attack.
Pranav Doshi
Okay, okay, great. And. And second, as you know, as we in last one year we carried out that carried out the loss making or the lower margin businesses going forward will the 10% volume growth rate will come back or the it will be like in line with the industry of 5, 6, 7%.
Sunil Nalavadi
Yeah. Currently the trend is there are certain pressures in the market. As I said, some of the commodities are impacting because of increase in the oil price. So the product which are related to that, it may be some of the plastic goods or some of the, you know, the oil related commodities. So there actually demand is already constrained. So in spite of that, actually we are expecting the growth in tonnage in the range of around 6 to 7% in the next year. Because of our, you know, the network and catering to many products in the industry.
We are not depending on any line of commodity or line of a customer. So that is. That is giving a lot of flexibility for us to increase the volumes.
Pranav Doshi
Got it. And. And normally we get a tonnage. But do we have the, you know, other metrics of the tonnage with the kilometers? Because no, we do not. Okay, the 10
Sunil Nalavadi
Kilometer what you are asking?
Pranav Doshi
Correct. And lastly, how the competitive, you know, competitive scenario in the industry? I understand that few of the companies have also increased the their prices and likes of the delivery who were dealing with the lower price. They are also going on the price hike. So how the competitive scenario in the industry as of now it has changed in last few year, few months. Or is it still the same
Sunil Nalavadi
Is a competitor scenario? Yes, the industry is highly depending on the unorganized operator. But that ratio is coming down now day by day. And the unorganized market is converting into the organized industry. So many of the organized Players actually taking share of the unorganized operators. But about the fuel rate is concerned, whatever increase is there it is. Everybody has to increase the rate and accordingly everybody is taking a call or pass it on to the customers.
Pranav Doshi
Okay, great. Thanks.
Sunil Nalavadi
Thank you.
Operator
Thank you. Reminder to all the participants, if you wish to ask a question, you may press star and 1. Our next question come from the line of ankit from Sapphire Capital. Please go ahead.
Ankita Shah
Yes, hello. So I just wanted to understand. You mentioned that we maintain the ebitda at around 21% and that we are able to pass on our price increases to the customers. So is there any lag with which we pass on the prices? Or we can like directly pass the cost, increased cost to our customers,
Sunil Nalavadi
There will be some lag. See now in the last one week only there are two times increasing the rate. So we cannot increase like this. But definitely we will analyze the trend over a period of at least one or two months. Then we will take a call. Now because of some disturbance in the bulk supply water, we got impacted. And because of this price increase of 3 rupees also we have already increased some of the freight rates in selective route, not in the entire route of the company. So that is giving.
That is taking care of whatever additional cost we are incurring. It is. It has been already pass it on to the customers like that. In the future, whatever changes will happen. We will analyze for some period and again we will take a call to increase the rate.
Ankita Shah
Okay. So we’ve already taken a price increase in some routes only. Like not all of our routes.
Sunil Nalavadi
Yes.
Ankita Shah
Okay. Okay. So like even if even with the lag, are we going to be able to maintain the 21% margin?
Sunil Nalavadi
Yeah, that lag will be not much longer period. It’ll be very short period, say within a month or so.
Ankita Shah
Okay. Okay. Understood. Yeah. And my next question is like how many branches do we plan to open in FY27
Sunil Nalavadi
This year? We have opened around 110 branches. And out of that around 55 to 60 branches which were closer to the existing branch. And some of the non performing branches are also closed. But in the current year also we are expecting 100 plus branches new branches to be opened.
Ankita Shah
Okay, so 110 net branches have you opened or gross? Like how many branches did we close? You said okay, around 60 branch
Sunil Nalavadi
Net branches are around 40 numbers.
Ankita Shah
Okay. And even in FY27 We plan around the same number like 100, 110 new gross branches. And then you close around 50 branches.
Sunil Nalavadi
No, in going forward the closer branches will be lesser net branches itself. We are expecting at least around 100 numbers in the upcoming year.
Ankita Shah
Okay. Okay. Thank you so much.
Operator
Thank you. Next question comes from the line of Anshul Agrawal from MK Global Financial Service limited. Please go ahead.
Anshul Agrawal
Hi. Thank you for the opportunity. So first question I had was on pricing in the industry versus VRL. So since we’ve taken price hikes in Q4 FY25 and I believe industry did not follow suit, our pricing was slightly premium or premium versus unorganized operators. Now in a fuel inflationary environment, when unorganized is expected to sort on pass on these hikes, would this lead to a convergence of pricing? But. Or should we think that, you know, that difference, that premium range should be maintained because even we sort of pass on these fuel hikes as and when the prices are hiked.
Sunil Nalavadi
Yeah. Now what is happening, it is, you know, inevitable to each and every operator in the industry to increase the rate or pack it on this fuel increase cost to the customers. See, accordingly we will analyze the competitor moment and accordingly we decide our pricing strategy. But with respect to the whatever rationalization and other things have been based, you know, defined based on our costing, that will never change. For example, in some of the route our margin is a hardly anything or some of the customer contact is giving very low margin.
We don’t wish to do that business, we wish to maintain certain operational margin and accordingly we are going to fix the rate irrespective of any other operator in that particular route or that particular customer.
Anshul Agrawal
Got it. So, so to, so to say the Q4 FY25 Price act that which led to a divergence in R versus sort of industry pricing that should sustain slash remain despite this fuel inflationary environment.
Sunil Nalavadi
Yeah. And even in the market many of the customers who have already left us, they are coming back to us. So that’s the reason for the quarter four we are in a position to grow in volume by around 3% on year. On year basis.
Anshul Agrawal
Got it sir. So second question was any particular reason why our lorry higher charges have sort of increased? I believe we have adequate number of vehicles to sort of manage our own tonnage. And the purpose of sort of doing this higher capex on vehicles was to sort of ensure that, you know, lorry higher charges sort of remain at a minimal. So any particular reason why these have increased
Sunil Nalavadi
The overall number of vehicles? The vehicle capacity has been reduced compared to last year versus the Q4. For example last year we were at around 6,100 plus vehicles. Those numbers have been reduced to around 5,900 vehicles because of, you know, reduction in the capacity of the vehicle. And on the other side the tonnage has been improved. To carry that additional tonnage we engage outside vehicles.
Anshul Agrawal
Got it. And given that our CAPEX plan or vehicle spend plans are stable in the current year as well, do we anticipate a similar number of vehicles being scrapped as is current year
Sunil Nalavadi
Scrappage will not be there but there will be addition of vehicles. So as we planned earlier, around 500 vehicles addition out of that around 100 plus vehicles have been already added. So remaining 400 vehicles are going to be added till December.
Anshul Agrawal
Got it sir. The next question I had was on the tonnage contribution from the new branches that we have added in the current year. Would you be able to share that number?
Sunil Nalavadi
Yeah, new branches in the current year addition is hardly around in Q4 around 1 1.5% growth. You know those are contributed because these are all new branches to rest. They are you know adding the new customers and the current year the contribution is around one one and a half percent.
Anshul Agrawal
Any, any particular plans or strategy of sort of extracting more volumes from these new branches in the coming year? Because I think we are adding net, you mentioned 100 branches on a base of say 1300 that should sort of contribute 7 to 8% volume on our overall base or they’ll take time to ramp up.
Sunil Nalavadi
It will take time to ramp up but on a full year basis again we are expecting that if we open, you know, gradually of 100 numbers we’re expecting that on a full year basis these branches may contribute around 2 to 3% in the tonnage and apart from that around 4%. We are expecting the normal growth either from the existing customer or new customer in the area where we are operating. So that’s the reason we are in a position to reach around 6 to 7% volume growth on a full year basis in next year.
Anshul Agrawal
Got it. So very clear. Just one last question. Any, any guidance on what could be our depreciation charges for the next two years? Considering that you know we have added a lot of hubs in the current year I see depreciation is sort of not inched up in the current year despite the capex we have done so. Any, any, any sort of number that you definition
Sunil Nalavadi
Cost will not increase because the most of the new profit is where we are investing. The value of the land is very high. So land is a non depreciable asset. There will not be any depreciation cost on that, only some portion of the building or infrastructure, what we are creating on this facility will be depreciated again. It is for a longer period. So there will not be much impact on the depreciation because of new facilities.
Anshul Agrawal
Great. All the very best for the next year, sir. Thank you so much.
Sunil Nalavadi
Yeah, thank you. But in spite of that, what is happening? Because of investment in these own facilities, the rental expenses are coming down and even the lease, liability and right of use assets in the balance sheets are coming down. So that will further strengthening our balance sheet.
Anshul Agrawal
Yes,
Operator
Thank you, Anshul. Our next question comes from the line of Krupashankar NJ from Avendus. Please go ahead.
Krupashankar NJ
Yeah, good morning sir. Thank you for the opportunity. I just wanted to understand, you know, with respect to vehicle mix, if you could call out and what is the typical law kilometers. It actually travels on a daily basis on an average.
Sunil Nalavadi
Sorry, I’m not hearing you properly. Will you repeat your question please?
Krupashankar NJ
So my question is in terms of the vehicle, the difficult to call out, what is the average tonnage and what is the average leap distance typically travels on a daily basis.
Sunil Nalavadi
The lead distance is in the range of around 270-280 km. I am telling you about across all the vehicle categories.
Krupashankar NJ
Right.
Sunil Nalavadi
And the capacities are in the range of around 15 to 18 tons.
Krupashankar NJ
Understood. Any particular reason why we don’t maintain 10 kilometer data, sir? Like if is it not a relative 10
Sunil Nalavadi
Kilometers? See, since we are handling your N number of rules, it’s basically the 1300 race to 1300. That is a kind of a route where we are operating. That’s the reason because of, you know, the bulk information, we are unable to compute that information. But we are trying to do that. Let us see if possible. Definitely we will share that information to you.
Krupashankar NJ
Understood. The second question I had, if you could give some clarity for FY26 for the full year, what is the mix in terms of the, you know, the industry mix, what you used to give earlier and also.
Sunil Nalavadi
Yeah,
Krupashankar NJ
Yes, yes, please go ahead sir.
Sunil Nalavadi
The industry means again predominantly to be driven by the textile and cloth industry commodities. So currently the contributor contribution from this segment is around 17 to 18%. That trend is going to be continued. And the next line of item is about the agriculture product. Agriculture again, seeds, equipment, all put together, fertilizer, all kind of pesticides all put together is contributing currently around 10 to 11%. Again the same line of contribution is going to continue. Only new thing is see, we are sending a good contract with some top corporate entities.
So again Predominantly their products are related to either. Some of the materials are related to textile and similar to that product. So industry mix will not change.
Krupashankar NJ
So textile, agri products combined is about 30%. What about the balancer
Sunil Nalavadi
Balance? Again industrial goods are there. There are pharmaceutical industries again books and stationary goods. Atom well product.
Krupashankar NJ
Okay, they are all in 5 to 6 to
Sunil Nalavadi
6%. Yeah,
Krupashankar NJ
Understood. And how about the. The MSME Large Enterprises and the spot bookings?
Sunil Nalavadi
Spot Booking again is 2Pay booking, what we call 2Pay and paid booking which is a spot payment. What we are getting from the customer
Krupashankar NJ
That
Sunil Nalavadi
Is again contributing in the range of around 80%. And account customers are contributing in the range of around 15 to 16% and remaining FTL around 6,7%. Full truckload is there. Actually the mode of booking will be all the mode of booking to pay, paid and account
Krupashankar NJ
6 to 7% is FTL through full truckload you’re talking about, sir?
Sunil Nalavadi
Yeah. Yes, yes,
Krupashankar NJ
Understood. And how about door to door mix? What is that ratio in FY26
Sunil Nalavadi
Door to door earlier it was around 33 34%. Now it is increased to around 38, 39%. Close to 40% of the commodities are door to door.
Krupashankar NJ
And what is the price difference between door to door and the others?
Sunil Nalavadi
The relation will be around 1, 1 and a half rupees per kilogram will be more in door delivery.
Krupashankar NJ
Understood. Per
Sunil Nalavadi
Piece. Yeah,
Krupashankar NJ
I wanted to also understand. You know, in terms of the competition given the. Given the price hike or you know what we have taken, how are our rates compared to the immediate peer? Is that substantially higher? Is that comparable or is that lower
Sunil Nalavadi
Compared to the unorganized players? Actually we are offering some premium rate to the customers. And again point is in our operations the customers are. Our competitors are different in each leg of our operations.
Krupashankar NJ
Right? For
Sunil Nalavadi
Example the express server companies since they are not directly competitor to us wherever you know, we are having some account customer corporate clients only. In those scenario the express server rates can be comparable. But in corporate actually our rates are more or less comparable with you know, these express car companies. In rest of the cases again it is changed the route wise. And commodities also. For example we are handling most of the textile commodities. From Gujarat to rest of the countries there are competitors are against the local operators.
Means route wise operators. Say for example if textile is moving from Andhra Pradesh, we need to compete compete with one operator, Gujarat to Karnataka again another competitor. And within cities also there are different operators. Say for example Surat Bangalore, one operator is there another operator, Surat Hyderabad, another operator like this so depending on the product and depending on the route, again we need to compare with the competitors and accordingly we are charging. But compared to unorganized players, yes, we are having some premium rate.
But in terms of organized players we are more or less comparable to them.
Krupashankar NJ
And rate
Sunil Nalavadi
Also depends on demand, demand and supply. Say for example some of the operators will not provide service properly or 24 by 7 in those scenarios, definitely we are offering some premium rate.
Krupashankar NJ
Understood? Yeah, I think that’s about it from my end. Thank you so much.
Sunil Nalavadi
Yeah,
Operator
Thank you. The next question come from the line of Tanish Jain from A54 Partners. Please go ahead.
Unidentified Participant
Hello. Thanks a lot for the opportunity. Sir, am I audible? Yes, you are perfect. Can you talk a little about the bus business which you have? We are seeing a lot of new buses on the road. So like how many buses do you have? What’s the revenue? What are the margins like?
Sunil Nalavadi
No, currently we are not into bus business. This company, the promoter and other companies having the bus business
Unidentified Participant
And there is no. So we’ve seen cargo etc going there. So that is at arms length, is it?
Sunil Nalavadi
No, nothing.
Unidentified Participant
Understood. Thank you.
Operator
Thank you. Our next question comes from the line of Mr. Alok Deora from Motilal Oswal. Please go ahead.
Alok Deora
Hi sir, just couple of questions. So you know, if you take this all these charges, you know on diesel prices increase and a bulk procurement coming down and also you know the tool charges increasing, how much? We are now in a position to increase the freight rates. We have increased at certain routes. But in general and you know the talks are that the prices will increase further. Like today also there was a price increase of nearly 8090 pace. So. So sir, how do you see this? I mean when would be a situation where say in a case where 3,4 rupees is increased further during the next three months.
So how are we looking at margins at the gross and EBITDA level to pan out? Would we be able to maintain this fourth quarter run rate or can it come under some pressure? Any thoughts on that?
Sunil Nalavadi
Yeah, there will be some temporarily disconnect or some variance will be there. But definitely on a full quarter basis we are planning to maintain the similar EBITDA numbers. The reason is for example now because of the disturbance in the bulk digital supply or through refinery we have already tweaked in some of the routes that there wherever we are offering at a lower rate and all or wherever there is a less competition. So where actually we have already increased some of the rates and we have changed certain metrics also within the Chargeable weight and all.
For example, earlier we used to charge 1 cubic feet equal to 8 kg. Now for certain routes we increase from 8 kg to 9 kgs. So straight away the quantity will increase in such routes. And definitely it will take care of whatever additional cost. And similarly certain line items for the customers we are charging different, different expenses. Also like one is the basic rate. Then second thing we are adding some of the loading and loading cost, some of the freight on value cost, some three, four additional items.
There also we are increasing certain metrics. And for account customer or contractual customer we are adding one line item in the context that the fuel surcharge. So that fuel surcharge depending on the fuel rate that will change. For example, today also if we increase certain rates but minimum rate, they will expect at least around 2 rupees increase, 3 rupees increase in certain contracts based on that fuel, that fuel purchase will apply to the customers. So because of these steps we are confident that we are going to maintain the EBITDA similar level.
There may be some basis points impact, but not in a big way.
Alok Deora
Okay, got it. So the price increase which has happened till now in diesel around four rupees or so, three plus the one rupee today. That is. So that is not having any real impact because that is basically more or less passed on.
Pranav Doshi
Yeah,
Alok Deora
Got it. And so on tonnage terms, as you mentioned one of the in your presentation also some of the customers has come back and you know, now it’s, you know we could see. So basically what you had highlighted during the first half of the year has actually happened where at the end of the quarter the loss in volumes have reduced and we have actually turned into the growth phase. So now how confident are we of getting the 7,8% volume growth for 27 or could it be higher or lower any risk factor on either side of this or would it largely be in the 7, 8% based on what you are seeing?
Sunil Nalavadi
No, the tonnage have been already constrained in the last year, this current year as well as the last year because of some of the exercise what we have taken. But considering our service level, most of the customers are coming back and also we are adding the new customers. For example, in Q4 year on year basis, our quantity around 17% of the quantity is contributed by the new customers year on year. I am saying and the left customer share is around 14% and existing customer growth year on year is around 1%.
So on a total of all these, actually we are in a position to grow by around 3% in the volumes. So apart from whatever the left customers are there, we are getting the new customer quantity also better than them. And there is a volume increase from the existing customers. So that is giving more confidence. And moreover, even though if we achieve, you know, 7% growth in the tonnage, that deficit is already there in the current, current year we see on the full year basis that the tonnage decline is 7%.
And predominantly it is from the customers who are already know our services. They are already experienced with the vrl. So we are. And because of this juncture of increase in the fuel rate, increase in the freight rate, again definitely they will come back to us. That’s what we are hoping. The major share will come from them also.
Alok Deora
Oh, got it sir. Yeah, I think that’s from my side though. Thank you.
Sunil Nalavadi
Yep,
Operator
Thank you. Thank you. Next question come from the line of Gaurav Sanjay Gandhi from Glorytail Capital Management, please.
Gaurav Sanjay Gandhi
Thanks for the opportunity. Sir, just one question, sir. Do you see any risk to the volume growth because of the Western DFC going love alive now some shift might happen to the railway side. Do you see any kind of risk to the volume growth?
Sunil Nalavadi
No. DFC is directly related to the full truckload. So the commodity what we are carrying is not directly linked with the railway services. So that’s the reason the impact of DFC will not be much on our commodities or our quantity.
Gaurav Sanjay Gandhi
Okay, okay, thank you. That’s it from my side. Thank you.
Operator
Thank you ladies and gentlemen. That was the last question for today. I would like to turn the conference over to management for the closing remarks. Thank you. And over to you.
Sunil Nalavadi
Yeah, thank you Once again to all the participants and your patient theory. Yes everybody. Most of the questions related to about the recent trend in the fuel rates. So considering our network, considering our customer base and customers, considering our the service to the multiple commodities in the industry, we are hoping that definitely we can pass it on this cost to the customers and maintain the EBITDA margins in the range of around 20% plus going forward with this, I wish to complete this course.
Thank you.
Operator
Thank you so much, sir. Ladies and gentlemen, on behalf of Motila Losborough Financial Service Ltd. That concludes this conference, thank you for joining us and you may now disconnect your lines.