AVG Logistics reported a rise in consolidated Profit After Tax to Rs 26.17 crore for FY 2025-26, up from Rs 21.33 crore. The company announced a final dividend of Rs 1.20 per share, proposed an increase in authorized capital, and introduced an employee stock option scheme. While operations expanded into liquid cargo and green logistics with major contract wins, the company reported an increase in net debt to Rs 173 crore.
AVG Logistics FY26 Earnings and Strategic Update
Consolidated PAT rose to Rs 26.17 crore from Rs 21.33 crore; Total Income reached Rs 582.48 crore.
Reader Takeaway: Higher profits and new contract wins drive growth, though rising debt levels warrant careful investor monitoring.
What just happened
AVG Logistics has declared a final dividend of Rs 1.20 per share for FY 2025-26. The company reported a total income of Rs 582.48 crore and an EBITDA of Rs 112.45 crore, maintaining a 19.3% margin. Alongside financial results, the firm proposed increasing its authorized share capital to Rs 25 crore and launched an employee stock option scheme for 9,50,000 shares.
Why this matters
The company is scaling its infrastructure, evidenced by the launch of a liquid cargo rail vertical and the acquisition of electric vehicles. Strategic contract wins with major players like PepsiCo India and Haldiram Nagpur indicate a robust business pipeline. However, the capital-intensive nature of these projects has pushed net debt to Rs 173 crore.
What changes now
Management has undergone a transition, with Rajesh Rohilla taking over as CFO in January 2026. Additionally, Sumit Garg joined the board as a Whole-time Director. Shareholders will vote on the dividend and other proposals at the 17th AGM scheduled for September 25, 2026.
Risks to watch
The debt-to-equity ratio has climbed to 0.67x from 0.42x. Investors should watch if the new contract wins and operational efficiencies generate sufficient cash flow to manage this increased leverage effectively.
What to track next
Watch the execution of the new liquid logistics vertical and whether the company can maintain its margin profile while servicing its expanded debt obligations.