Financial Performance: A Sharp Downturn
Flomic Global Logistics Limited has reported its financial results for the third quarter and nine months ended December 31, 2025 (Q3 FY26 and 9M FY26), revealing a stark contrast to its previous year's performance. The company's revenue from operations for Q3 FY26 decreased by 19.3% year-on-year, falling to ₹108.61 crore from ₹134.58 crore in Q3 FY25. Profit After Tax (PAT) also saw a significant drop of 31.9%, from ₹1.13 crore to ₹0.77 crore.
The nine-month period (9M FY26) painted an even grimmer picture. Revenue declined by 15.2% to ₹323.71 crore. More critically, the company swung from a profit of ₹1.76 crore in 9M FY25 to a net loss of ₹3.22 crore in 9M FY26. This reversal from profitability to loss highlights significant headwinds impacting the company's operations.
This current downturn is particularly concerning given Flomic's strong performance in the full fiscal year FY25. For FY25, the company had reported a revenue increase of 50.6% to ₹500.15 crore and a PAT growth of 69.1% to ₹3.70 crore compared to FY24. The recent results suggest a significant shift in the company's trajectory.
Strategic Outlook: Focus on Integration and Efficiency
The company's management, through the CEO's message, emphasized the resilience of its diversified logistics platform and customer engagement. Flomic aims to strengthen its integrated service offerings, expand its network selectively, and pursue growth that is both sustainable and improves margins. The 'Way Forward' strategy includes geographical expansion, scaling e-commerce focused warehousing, growing project logistics and air cargo capabilities, increasing customer wallet share through integrated solutions, and boosting efficiency via digital platforms. However, no specific quantitative financial targets were provided for the future.
Financial Deep Dive: Shrinking Margins and Rising Debt
The income statement reveals a significant pressure on revenue, with a 19.3% YoY drop in Q3 and a 15.2% YoY drop in 9M FY26. EBITDA also fell by 17.7% in Q3 and 25.2% in 9M FY26. While the EBITDA margin in Q3 improved slightly by 20 basis points to 9.0%, the 9M margin contracted by 110 basis points to 7.8%. The net profit margin also saw a slight decrease.
Notably, finance costs have increased significantly year-on-year in both periods, indicating higher borrowing expenses.
The balance sheet shows a slight increase in total assets to ₹2093.47 crore in FY25 from ₹2017.38 crore in FY24, and total equity grew to ₹468.78 crore. However, total liabilities also rose to ₹1624.69 crore. A key concern is the substantial increase in consolidated borrowings, with non-current borrowings rising to ₹3.77 crore from ₹0.52 crore and current borrowings increasing to ₹33.49 crore from ₹27.26 crore. Cash and cash equivalents have also decreased from ₹119.93 crore to ₹101.30 crore.
Investor Risks
- Performance Decline: The substantial year-on-year decrease in revenue and profitability for Q3 FY26 and the nine-month period is a primary concern. The shift to a net loss in 9M FY26 warrants close investor scrutiny.
- Increased Leverage: A significant rise in consolidated borrowings, coupled with higher finance costs, indicates increased financial leverage and potentially higher debt servicing burdens, which could strain future profitability.
Key Events
The company has filed its Investor Presentation for the Q3 FY26 financial results.
Peer Comparison
While Flomic Global Logistics grapples with declining revenues and a net loss, its peers in the Indian logistics sector are demonstrating more robust performance. For instance, Transport Corporation of India (TCI) reported a 13.68% year-on-year rise in net profit for Q3 FY26 to ₹114.70 crore, accompanied by an 8.87% increase in net sales [3]. Mahindra Logistics (MLL) achieved a 19% year-on-year revenue growth in Q3 FY26, reaching ₹1,898 crore, and importantly, turned profitable after several quarters of losses [5]. Shadowfax, a rapidly growing player, posted a 65.5% revenue jump to ₹1,160 crore and a significant increase in net profit in Q3 FY26 [7, 9]. Tiger Logistics also reported revenue of ₹139 crore and PAT of ₹5.94 crore for Q3 FY26, with expanded EBITDA margins [8]. The broader Indian logistics sector is projected to grow, driven by e-commerce and government initiatives [6, 11, 16], suggesting that Flomic's performance is not a sector-wide trend but rather specific to the company.