Sical Logistics Reports FY26 Turnaround and Major Contract Win

Profit for FY 2025-26 stands at Rs 49.28 crore, reversing a loss of Rs 25.83 crore recorded in FY 2024-25. The company secured a major 11-year contract worth Rs 4,038 crore for overburden excavation from South Eastern Coalfields Limited.

Reader Takeaway: Strong operational turnaround and debt settlement provide stability, but revenue concentration in large government contracts remains a factor.

What just happened

Sical Logistics has released its financial results for FY 2025-26, highlighting a significant return to profitability. The company has completed its NCLT-mandated resolution plan obligations, settling Rs 226 crore in debt. Additionally, the firm successfully met the 25% minimum public shareholding norm through a rights issue that raised Rs 93.03 crore at Rs 64 per share.

Why this matters

The successful resolution of legacy debt and the onboarding of a massive Rs 4,038 crore contract for the Porda Chimtapani project provide long-term revenue visibility. The company's pivot to profitability was bolstered by increased business volumes and asset monetization, marking a recovery from its previous financial stress.

Operational Highlights

• Revenue from operations surged to Rs 385.68 crore, up from Rs 221.82 crore in the prior year.
• Subsidiary SMART commenced operations at its rail-linked freight terminal in Ponneri, Chennai, diversifying the firm's logistics capabilities.

Risks to watch

Investors should note the high concentration risk in the mining logistics segment, which relies on a few large government contracts. Changes in environmental or mining regulations remain a persistent macro risk that could affect execution timelines.

What to track next

The focus will now shift to the execution of the 11-year Porda Chimtapani project and the integration of the new statutory auditor, M/s. CNGSN & Associates LLP, following the upcoming AGM on September 30, 2026.