Snowman Logistics is on track to surpass Rs 100 crore in EBITDA for FY27, driven by a 10-11% YoY rise in warehousing revenue. The company is actively expanding its footprint, with 23,000 pallets under construction and another 20,000 under discussion. Despite muted short-term PAT due to heavy asset reinvestment, the firm remains committed to its long-term infrastructure-building strategy. Investors should closely watch for the court order on the Jaipur ICD project and recovery trends in the 5PL business segment.
Snowman Logistics Sets Sights on Rs 100 Crore EBITDA Milestone
Snowman Logistics is targeting an EBITDA exceeding Rs 100 crore for FY27. The company is simultaneously scaling its operations with 23,000 pallets currently under construction and a further 20,000 under active discussion.
Reader Takeaway: Robust long-term infrastructure expansion drives EBITDA growth, while legal delays at the Jaipur ICD project remain a hurdle.
What just happened
Snowman Logistics has reaffirmed its long-term growth trajectory during its recent performance update. The company reported a 10-11% year-on-year increase in warehousing revenue, supported by a healthy 85% utilization rate across its facilities. While the 5PL segment has seen sluggish growth of 1-2%, management is prioritizing profitability by avoiding low-margin contracts.
Why this matters
The company is betting on an asset-heavy model to secure long-term market dominance, investing heavily in cold storage infrastructure. While these investments have pressured current profit figures through higher depreciation and interest costs, management expects these to yield returns over a 30-40 year horizon. The focus is clearly on EBITDA, which the company expects to scale past the Rs 100 crore mark this fiscal.
What changes now
The company’s operational capacity is set to increase significantly as new facilities come online. However, the business mix is shifting, with management clarifying that previous margin pressures were partially due to the inclusion of thin-margin park-and-pay and dry warehousing services. The firm is now streamlining its service offerings to protect core cold storage margins.
Risks to watch
The Jaipur Inland Container Depot (ICD) remains a significant monitorable. Operations at this facility have been stalled for two years due to legal proceedings. Although final court arguments have concluded, the company requires a favorable order to proceed, which would then necessitate an 18-month lead time to reach full operational capacity. Additionally, the lack of new customer additions in the 5PL segment needs improvement to support growth targets for the second half of the year.
Context metrics
- Warehousing Revenue Growth: 10%-11% YoY
- Pallet Utilization: ~85%
- Total Expansion Pipeline: ~43,000 pallets
What to track next
Investors should monitor Q3 and Q4 performance for signs of a recovery in the 5PL segment and await the court verdict regarding the Jaipur ICD, which serves as a critical potential volume driver.