Road to Profitability
Celsius, a cold chain logistics technology company, is set to achieve a significant milestone: its first profitable quarter, possibly as soon as next quarter. This success is driven by strong demand from growing sectors like quick commerce, dairy, and other perishable goods. The company projects its annual revenue run rate to grow from its current ₹400 crore to between ₹550–600 crore within the next fiscal year. CEO Swarup Bose noted that Celsius has doubled its revenue run rate each of the past five years. Its operations now cover nearly 700 cities, supported by over 150 warehousing and distribution points and a fleet of more than 4,000 vehicles. Celsius serves a diverse client base, from large dairy companies to quick commerce platforms, managing the entire cold supply chain from farm to final delivery.
India's Cold Chain Shortcomings
Despite its expansion, Celsius operates in an Indian cold chain sector with major infrastructure gaps. Swarup Bose pointed out a persistent shortage of cold storages, specialized vehicles, and distribution hubs, stating that the country's cold infrastructure is still in its early stages and falls significantly short of demand. This is especially problematic in agriculture, where a large portion of produce needing cold storage faces high wastage rates due to poor facilities, leading to increased consumer prices. While the Indian cold chain market is expected to reach about $24.85 billion by 2026 and grow to $33.12 billion by 2031 (a CAGR of 5.91%), this growth is hampered by these fundamental issues. Current cold storage capacity is often concentrated and designed for single commodities like potatoes, with a major deficit for multi-commodity storage needed for a variety of perishables. Celsius's technology-focused, asset-light approach aims to optimize available resources, but the company still depends on the overall capacity and reliability of the sector.
Market Competition and Growth
The cold chain logistics market in India is competitive, with companies like Snowman Logistics and ColdEX Logistics vying for market share. Snowman Logistics had a market value of ₹513 crore as of March 30, 2026, with a P/E ratio around 309x and revenue near ₹599 crore. ColdEX Logistics, which reported ₹938 crore in revenue as of March 31, 2024, has also secured substantial funding. Celsius, having raised about ₹390 crore to date, including a ₹250 crore Series B round co-led by Eurazeo and Omnivore in May 2025, is positioned for major expansion. It aims to reach over 1,000 cities and enhance its technology platform. The sector is also driven by demand from pharmaceuticals and biologics, which show high growth rates, alongside the food and beverage industry. Overall, the market is projected to grow annually between 5.53% and 8.62%, depending on the forecast. Celsius is also investing significantly in electrifying its last-mile fleet, operating over 200 electric refrigerated vehicles with plans to increase this to over 500, making it a leader in sustainable logistics.
Climate and Geopolitical Risks
External factors are posing growing challenges to the logistics sector. Extreme weather events, such as last year's heavy monsoons and floods, have disrupted supply lines and production plans, risks companies are now planning for. India is among the 10 countries most affected by extreme weather, which can cause large economic losses and damage infrastructure. Furthermore, the current conflict in West Asia has driven up fuel costs, with crude oil prices reaching $115 per barrel and diesel prices increasing by ₹3 per litre. This rise affects operating costs for fleet operators, potentially leading to higher logistics prices. Disruptions on key shipping routes like the Strait of Hormuz could further strain supply chains, delay shipments, and increase freight costs, especially for perishables and pharmaceuticals that need exact temperature control.
Future Plans and Outlook
Looking ahead, Celsius plans to go public with an Initial Public Offering (IPO) within the next three to four years. The company is expanding its reach into tier-2 and tier-3 markets, expecting strong client interest in these areas. Key investments are going into technology, including advanced systems for managing inventory and drivers, and a major commitment to electrifying its last-mile operations, with the aim of full electrification by 2030. Celsius also plans to grow its presence in the lucrative pharmaceutical logistics sector. Despite the major infrastructure challenges and growing external risks, Celsius's focus on technology, sustainability, and strategic expansion puts it in a position to benefit from the increasing demand for cold chain solutions in India, depending on its ability to manage the complex operational and geopolitical environment.