Western Carriers (India) Limited (NSE: WCIL), the asset-light logistics provider achieved a 9% quarter-on-quarter revenue increase and expanded its sequential EBITDA margins to 5.0%. Despite these short-term gains, net profit for the third quarter declined by 17.9% compared to the previous year, reflecting broader operational cost pressures.
The company reported consolidated revenue from operations of ₹478.1 crore for the third quarter ended December 31, 2025. This represents a 9% increase over the preceding quarter, driven by the company’s multimodal, rail-focused logistics model. While sequential performance metrics for earnings before interest, taxes, depreciation, and amortization (EBITDA) and profit after tax (PAT) showed double-digit growth, year-over-year profitability remains constrained as the company navigates a challenging geopolitical and operational environment.
The primary driver for the current period was the continued scaling of WCIL’s 4PL asset-light business model and the operationalization of the Gati Shakti Multi Modal Cargo Terminal at Devaliya Station near Morbi. This terminal is intended to strengthen the company’s multimodal connectivity for both corporate and MSME customers. Additionally, the company maintained its status as a major rail associate for Concor, handling substantial EXIM (Export-Import) business volumes.
Product Highlights
The company is currently pursuing a technology-driven innovation roadmap, which includes the development of a Delivery as a Service (DaaS) model. The company is also innovating in container design, focusing on collapsible, jumbo, and dwarf containers to optimize cargo space. Current operations leverage a fleet of over 500 GPS-enabled trucks and 850 shipping containers, supported by a proprietary integrated ERP system for real-time shipment tracking.
Financial Performance
For the quarter ended December 31, 2025, revenue from operations reached ₹478.1 crore, up from ₹439.6 crore in Q2 FY26 and ₹443.0 crore in Q3 FY25. EBITDA stood at ₹23.9 crore, a 27.1% increase from the previous quarter, though only a marginal 2.3% increase from the ₹23.4 crore reported in the prior-year period. The EBITDA margin settled at 5.0%, up from 4.3% in the second quarter but down from 5.3% in Q3 FY25.
Net income (PAT) for the quarter was ₹10.8 crore, reflecting a 21.6% sequential recovery but a 17.9% decline from the ₹13.2 crore recorded in Q3 FY25. For the nine-month period (9M FY26), PAT reached ₹30.6 crore, a significant decrease from ₹51.1 crore in 9M FY25. Earnings per share (EPS) for the quarter was ₹1.1.
The balance sheet as of the end of the first half of FY26 showed total assets of ₹1,153.1 crore. Trade receivables remained a significant component of current assets at ₹648.2 crore. Total equity stood at ₹847.3 crore, while current borrowings were recorded at ₹173.2 crore.
Investment Thesis: (Bull vs. Bear)
Bull Thesis:
- Company demonstrates strong sequential recovery in margins and revenue with its asset-light model allows for scalability with lower capital intensity and its 100% retention rate among its top 10 clients suggests a highly defensive revenue base.
- The commissioning of new multimodal terminals provides a platform for volume growth in high-demand industrial hubs like Morbi.
Bear Thesis:
- Year-over-year profitability has sharply declined, with 9M FY26 PAT down 40.2% compared to the previous year.
- EBITDA margins remain thin at 5.0%, and rising operational expenses (₹421.6 crore in Q3 FY26 vs. ₹388.5 crore in Q3 FY25) continue to pressure the bottom line.
- High trade receivables (₹648.2 crore) may also pose working capital management risks if collection cycles lengthen.
Receivables Strategy
The company reported trade receivables of ₹648.2 crore as of September 30, 2025, broadly tracking revenue growth, while its working capital cycle stood at 119 days in H1 FY26. To manage receivables and improve cash conversion, the company is deploying a technology-led strategy anchored in an integrated ERP platform that automates customer-specific e-invoicing, links billing with accounting, and enables real-time data capture through a mobile ERP rollout. Management expects these measures to reduce billing lags, improve accuracy, and accelerate invoice submission and collections.
The company’s status as a licensed Custom House Agent allows it to provide single-window logistics and documentation services in-house, which is intended to reduce administrative bottlenecks and support faster payment cycles. Enhanced reporting across sales and fleet operations is aimed at improving visibility over billable events, while deeper integration with long-standing clients. accounting for roughly 80% of revenue and including full retention of the top 10 customers, is expected to support more predictable collections. Management notes, however, that geopolitical volatility and the structural complexity of 4PL logistics continue to weigh on margin stability and cash-flow consistency.
Terminal Commissioning
Company expects the commissioning of the Gati Shakti Multi Modal Cargo Terminal at Devaliya station near Morbi to support its multimodal growth by strengthening infrastructure, reliability, and customer access. The terminal enhances integrated logistics capabilities by enabling seamless rail-road connectivity and improving service consistency across its national network. Its proximity to the Morbi industrial cluster positions the company to deepen penetration among corporate and MSME clients in a high-volume manufacturing hub, supporting efforts to expand into new sectors and increase share of business with existing customers.
The project aligns with the government’s broader Gati Shakti and Bharatmala infrastructure push aimed at lowering logistics costs and improving national freight efficiency. Investment in multimodal terminals is expected to support higher cargo throughput as manufacturing and exports scale, while also improving cost control, transit times, and end-to-end visibility. For WCIL, the Devaliya facility adds owned infrastructure that can reduce third-party dependence and support its asset-light 4PL model, though execution and demand visibility will remain key to translating capacity additions into sustained margin and cash-flow gains.
Client Expansion
Management’s stated strategy focuses on deepening relationships with its existing base of over 1,600 customers, where 80% of FY25 revenue was derived from partners of more than three years. Growth drivers include expanding into untapped sectors such as retail, increasing “wallet share” through integrated value-added services like warehousing and customs house agency (CHA) expertise, and pursuing inorganic growth through selective acquisitions. The company intends to maintain its asset-light model while selectively upgrading strategic technology and handling equipment.
Sector Outlook
The company operates within an Indian logistics market projected to expand from about $317 billion in 2024 to $484 billion by 2029, supported by structural policy initiatives and infrastructure investment. Government programs such as Bharatmala Pariyojana, including plans for 35 multimodal logistics parks, alongside a national objective to reduce logistics costs from roughly 14% to 8% of GDP, are expected to improve freight efficiency and support sector growth.
While these macro tailwinds provide a supportive backdrop for capacity expansion and integrated logistics services, management notes that global geopolitical volatility continues to create variability in demand visibility and operational consistency. As a result, external uncertainties may temper the near-term translation of industry growth into stable margins and cash-flow performance.