Glottis Limited (GLOTTIS) Q2 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to Glottis Limited Q2 and H1FY27 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note, this conference is being recorded. I now hand the conference over to Mr. K. Manikandhan. Thank you, and over to you, sir.

Thank you, man. Good afternoon, everyone, and thank you for joining us for our earnings call to discuss our performance for the quarter and half-year ended 30th September, 2026. We appreciate your participation and continue your interest in Glottis. The operating environment during the quarter remains mixed across global trade and logistics markets. Indian merchandise exports recorded growth during the quarter, supported by shipment across engineering goods, electronic goods, and chemicals. At the same time, geopolitical development, changes in freight rate, and uneven activity across green lanes continue to influence the logistics industry. In this environment, our focus was on expanding our exports, lead business, and diversifying our presence across customer industry. Thank you. So, we recorded growth in revenue during quarter. Revenue from operation was 2765 million, an increase of 28.8% year-on-year and 17.9% subsequently. Key development during quarter was significant increase in our C-Export business. Revenue from this segment grew 344.4% year on year, which is contribution to total revenue increase around 42% from 12% in due to FY2026. See, import remains our largest business vertical, contributing around 50% of revenue. Although, its share moderated from 81% in the corresponding quarter last year. This shift reflects our increasing focus on expanding export business alongside our established import operations. Air export also recorded growth, with air import and air export revenues increased by 16.9% and 4.20% year-on-year respectively. From a profitability perspective, the quarter saw a pressure on margin due to changes in businesses. 5. Fine realisation and no training costs. EBITDA for a quarter walk, Rs. 34 million, with marginal 1.2%. We remain focused on improving shipments level, profitability, managing operating costs, maintaining discipline in working capital as we expand the business. Customer acquisition and diversification also remain an important area of focus. The contributions from our top 5 customers reduced to around 33% of revenue compared to what you are offering due to FY2026. We are working to broaden our customer base and increase distance from existing accounts across the sea price, tax price, and transportation offerings. This is aimed at building wider base of customer relationship and reducing dependence on the limited amount of accounts. Moving to our industry, we have made progress in broadening our presence across different end-users industries. The contribution from renewable energy declined to around 16% of revenue from product 6,000 in Q2 to 5.026. Reducing our difference on this segment, at the same time logistics contributed around 20% of the revenue while home offline accounts for around 80% compared to 4% and 11% respectively. In the corresponding quarter last year, the increasing contribution from the industry reflects our efforts to expand our presence across different cargo category and reduce concentration in any single industry. Alongside customer and industry, we are also expanding our operational network to support business growth. We also expanded our intermediary network and service in the infrastructure through the addition of office agents, customer office agents, shipping line of commercials and transports. This addition of or aid at improving our network reach and supporting customer requirements across different regions. We also took steps towards expanding our international process. The substrate has been incorporated over only one substrate, Glottis Logistics, STM, UST in Malaysia. The substrate has been established to expand our flight forwarding and logistics support services. This provides us with base for developing operations in Malaysia and strengthening our customer relationship and service capability across international markets. On operational trend, we progressing with our planned investment in transportation infrastructure, Following the addition of trailers during Q1 FY 2027, the deployment of containment is planned to begin in Q3 FY 2027. We intend to complete our planned capital expenditure program during 2027 using the IPO process as outlined earlier. These investments are aimed at improving the control over transportation requirement and supporting service delivery as business expands. As we move ahead, our priorities will remain on improving shipment-level profitability and expanding our presence across export market and different industries. We will also continue to focus on managing working capital and making measured investment in operating capabilities to support the long-term growth of the business. I would like to thank our customers for the continued trust of our employees for their efforts and our shareholders for their support. With that, I will now take you to the financial

and operational performance for the Quadra and the half-year ended circa September 2026. Starting with the financial performance, the revenue from operations for Q2 FY27 was $2,765 million, registering a growth of 28.8% year-on-year and 17.9% quarter-on-quarter, including other income of $19 million. The total income for the quarter was $2,783 million, compared to $2,151 million in Q2 FY2026. For H1 FY27, the revenue from operations reached $5,110 million, registering a growth of 33.5% over $3,829 million in H1 FY26. Coming to the operating profitability. For FY27, the EBITDA leads to 195 million with a margin of 3.8%. The moderation in the profitability was mainly on account of the trading price rate. Thank you for listening to the other year. I just contributed. 7% and 97.9% respectively. For H1 FY 2027, Asia contributed around 80% of the revenue followed by North America at around 11% and Europe at around 4%. Africa contributed around 3%. While the balance came from South America or Australia and other markets. Looking at the industry mix, logistics contributed around 20% of the revenue during Q2FY27 compared to 4% in Q2FY26. Home appliances accounted for 18% compared to 11% in corresponding quarter last year. Renewable energy contributed around 16% of the revenue compared to 46% in Q2. Chemicals contributed around 7% while the engineering products and automobiles accounted for around 10% and 5% respectively. Revenue from chemicals and automobile increased to 532% and 110% year-on-year. For FY27H1, the largest is contributed around 15% of the revenue, while the home appliances accounted for 14%. Thank you very much. and widening the Thank you. This is the operator to open the floor for questions.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. The first question is from the line of Venkata Chalam from Aldebaran Capsule. Please go ahead.

Hello. So, I hope I'm audible.

Yes, you are.

So, firstly, I would, you know, congratulate Glottis on a very high performance metrics and also wish to applaud that I've seen that the promoters are also infusing quasi-equity or unsecured loans to support the business at trying times. So this is on the very positive note. I wish to also seek some inputs that we understand that the oil prices are cooling down and this will reduce the, you know, the costings. So, you know, do we see a higher EBITDA or higher guidance in terms of profitability over the next two quarters? Thank you.

Hi, Mr. Enkit. So, thank you. So, yes, as you rightly said, there has been a lot of fluctuations in the group in relation to the water, and now it is like, as of now, it is like settling down, and we are expecting a positive trend, especially when the group is like coming, settling down to some pace. We are expecting a positive feedback and we will turn very positive and this is getting settled now. So, in the next two quarters, we are very bullish. So, considering this crude levels are maintained in the same levels, like currently it is like $92 yearly, it used to be $70 to $80 a barrel. So, if it is like sustaining less than $80 or $85, it would be great for the industry, and we can see great growth in the next two quarters. Thank you.

Mr. Venkatichalam, you are not audible.

Thanks, thanks ma'am. Thank you very much.

Thank you. Next question is from the line of Kedah from NAND Partners. Please go ahead.

Hello, am I audible?

Yeah, Mr. Kedah.

Yeah. So, my question is around the competition. So, how is the competition shaping up in the sector, especially like your pricing pressure from the global forward years and smaller regional players?

So, Kedav, definitely the whole industry is facing the same pressure. And, in fact, as CFO has commented, there has been a drop in renewables in this particular quarter and there has been a significant growth on exports from our side. So, we are also trying to concentrate more on different verticals where we have more opportunities to grow. And the credit line is again a difficult situation, challenging situation for the whole industry as the flight levels have gone up significantly. So overall, the industry is facing a similar pressure.

Okay. Okay. Got it. And like are the importers or exporters now committing to like longer term contracts or is it still spot price driven?

Mr. Kedar, long-term contracts are not getting fulfilled by any of the shipping lines in the recent past, because of the high volatility on the crude as well as the availability of the vessel. The vessel charter hires are also highly flexivating, like crude, vessel charter hires is also highly flexivating. So, shipping lines are not willing to sign any long-term contracts, so which is, which is, The situation now, everything is going on, moving on in spot. So, either exporters or importers, everyone is moving on spot.

Okay. Okay. Understood. And could you give like a guidance for FI27 and FI28? Like what do you see in revenue growth and EBITDA margins?

So, revenue growth, we are very bullish on the revenue growth. Definitely, we will surpass earlier numbers. And now the challenging part for the company is to how to sustain and increase the bottom line, so which we are working out with different measures. So very positive on it. And we see growth-wise, in terms of growth-wise, definitely we see a double-digit here on it.

Thank you. Those are my questions.

Thank you. Ladies and gentlemen, you may press star and one to ask a question. Next question is from the line of Shashank Mehta from Parak Family Office. Please go ahead.

Am I audible? Yes, sir.

You are audible.

So, my question is, how much are you investing in the technology, like transport management system, real-time visibility automation, and what are the service differentiation which you guys expect from it?

Sir, right now we have deployed close to 80 vehicles, and each vehicle has been added to the GPS, and the tracking is normal for any tracking. Going forward, we got a software, especially exclusive on transformation activity, to track and monitor each and every movement. So, which will be integrated with the EIA. So that the real-time tracking will be automated and will be shared with the respective customers as well as the people in our team to monitor and keep the flow in the network.

Okay, and what are your plans to scale warehousing and road transportation, and what is the expected margin profile from these two verticals?

Varos, definitely we are scaling up. So currently, we have signed the long-term deal for 200,000 square feet, which we are trying to scale up in South as well as in West of India. So we have recruited strong team, especially for the Varos. And we see a margin of like double-digit margin in terms of Varos. And in terms of coming back to the transportation, transportation may increase furthermore fees and the development of fees would be in different areas and the margins would be again double digit in terms of the transportation.

Fair enough. And one more question. Your subsidiaries in Texas and Malaysia, how are they performing? And what is their contribution to your total top line and bottom line?

Yes, sir. First, I will start with EOS. We have incorporated this EOS in March, actually. So, after all the OMALP's completion, we managed the operation started from last month. So, we are slowly increasing the revenue side of the business, and we are trying to establish and start focusing on the customer, especially from the audience side, as well as the decision side, and we will start seeing the proofs of the deployment, maybe from the Q4 of this year. So... That is from the U.S. side.

And in terms of Malaysia, we have just incorporated and the rest of the properties work has been in track and hopefully this will be completed by the Q3 or Q4. So from that, we will start seeing the results, sir.

Okay. And one last question. So how do you see your working capital shaping up? Working capital cycle shaping up in the coming quarters?

Actually, our current trade receivable days is around 80 days, but we are having some measures, we are taking some measures to control and reduce our trade receivables, but despite all the freight rate increase, we are also supporting our customers in this hard time. So meanwhile, we are also very choosy in our customer base, and we will be targeting the customers, long-term customers, and supporting them.

And all the best to you guys.

Thank you. Next question is from the line of Shiv Mattu, an individual investor. Please go ahead.

Thanks for this opportunity. Just one question, actually. The promoter funding has allowed to close the working capital gap. Is it short-term funding? If the working capital improves, the promoter funds will be reversed.

Actually, since the price rates are very high, four to five times, there was increase in the price rate. And also, we are expanding our business all over the world. So, to support these two things, mainly, we are taking the help from the director. But at the same time, since we are in expansion mode, definitely based on the requirement, based on the cash flow situation, the repayment or the income. It seems like we are taking the interest rate loan from the director. So that is one more point we need to note.

What is that? It's 60 crores, right, from what I remember? Yeah, it's just 60 crores, and the tenant, what we have fixed it up till 5 years is what we have fixed, and it is an interest-free loan, and it can be partially or fully withdrawn back based on the cash flow situation of the company. Okay, okay, got it. Thank you. Thank you, sir.

Thank you. A reminder to all the participants, anyone who wishes to ask a question may press star and 1 on your touchtone telephone. Next question is from the line of Nakul De from NTV Asset. Please go ahead.

Yeah, thank you. Am I audible?

Yes, sir, you are audible, sir.

Yeah, thank you for the opportunity. I just want one of the questions I had. I believe that at the end of 2-1, the company had an owned fleet of around 80 vehicles or so, with container deployment expected to commence from Q3. So I just wanted to understand what is the current fleet strength, and how are the utilization levels trending, and to what extent is the backward integration contributing to cost 3 and 3s and margin improvement?

So, current fleet strength is 85, post-deployment of funds, current fleet is 85, and so we are completely engaged with the backward integration to our exporters as well as importers. So, currently, vehicles are based out of South, and we will be also trying to engage the vehicles in multiple locations. To give more comfortability doing this backward integration for our customers, and this will be a great support for the in-customer or for the exporters. So definitely the margin levels will be increased and it is getting increased in terms of transportation. I mean, I'm coming back to the containers, the deployed containers, it's getting rolled out from 2.3, and we will start utilizing these containers from 2.3 onwards. The delay has happened due to multiple reasons, due to raw material issue, geopolitical issue, multiple issues, but now it is getting rolled out, the production has already completed, it is getting rolled out from Q3 onwards, and we will start replacing the containers from Q3. Hope I have answered your questions.

Thank you for that update. Another question that I had is, your air freight has emerged as an important growth driver for you. What would be the key factors that are driving growth in this segment, and what are your medium-term growth ambitions and targets for air freight?

So, air freight is a better profitable business segment for us. So, the concentration is going more into air freight projects and new verticals, the new added verticals like auto or chemicals. After a development, we have identified and we have infused a lot of sales teams being destroyed across India with multiple branches. So, aftrade is going in the right track and we foresee aftrade growth will be in double digits quarter on quarter. And a lot of charter activities have been done, especially on the trade, both exports as well as imports, and we will be having a lot more opportunities going forward post this war scenario. So, concentration in ads will keep increasing more.

Okay, thank you. One last question more towards the industry side now. You see, despite strong growth in India's merchandise exports and... September 26th, evolving U.S. tariff policies and the recently signed U.S. sanctions legislations have created some uncertainty, I believe. How are these developments, along with the ongoing India-U.S. trade deal negotiations, influencing your U.S.-bound export volumes, customer demands, or shipment plannings?

So, most of the customers which have been considerate like, they take time and see, got the work obviously in both locations. And some of the vehicles we have been targeting is, for example, one is like in power transmission and all those things, which in spite of all the tariff level, all the different kind of tariff between the countries, I think this has a huge demand for a growth in particular sector, especially the power transmission and auto crisis. So, in this industry, in spite of all the tariff differences keep growing, and the commitment to the company remains safe. So, I think there are certain traits like examples, like minerals, and those sectors support, but the automobile and the power transmission keep on. Oh, no. The segment which you are concentrating is doing a tablet.

Okay, that answers my questions. Thank you so much and all the best for your forthcoming H2.

Thank you.

Thank you. As there are no further questions, I now hand the conference over to Mr. Ramkumar, sir, for closing comments.

Thank you once again for joining us today and for your continued interest in Glottis. We appreciate the confidence you raise in our company. If you have any additional questions, please feel free to reach out to our investor relations and advisors, Chhatgei department, and we will be glad to assist you. Thank you for your time and kind support. Thank you.

Thank you. On behalf of Glottis Ltd, that concludes this conversation. Thank you for joining us and you may now disconnect your lines.