Glottis Limited (GLOTTIS) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Glottis Limited Q1 FY27 Earnings Conference Call. As a reminder, all participant lines will be in the listener-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-down phone. Please note that this conference is being recorded. I now hand the conference over to the management for their opening comments.

Good afternoon, everyone. Thank you for joining us for the earnings call to discuss our performance for the quarter ended 30th June, 2026. We appreciate your participation and interest in Glottis as we begin the yield financial year. The operating environment during the quarter remains mixed across global logistics and price markets. India's merchandise exports recorded growth during the quarter, with engineering goods, chemicals, and electronic goods among the category contributing to the increase. At the same time, swipes activity across the individual trade lines remain uneven. In this environment, our focus remains on customer engagement, expanding our services, capabilities, and maintaining operational discipline. We delivered good growth in revenue during that quarter. Revenue from operations was Rs. 2345 million and increase of 39.5% here on year. EBITDA was Rs. 163 million with margin of 6.9% while profit after tax work was at Rs. 107 million with margin of 4.6%. The growth in revenue was supported by better realisation as well as favorable distribution. Ocean price continued to upward for a majority of our revenue, while the contribution from export and outside activity increased during the quarter. This helps the growth revenue even through container throughput was lower. From volume perspective, our ocean flight container throughput was 21,841 years during the quarter. The lower throughput was partially offset by better realization and higher contribution of persons with higher revenue for ship funds. Looking at the business mix, sea input remains our largest vertical and magnitude around 70% of revenue during the quarter. See export English, its contribution to around 20% compared to about 15% in the Q1 F5 conditions. Revenue from pre-export grew at 83.5 year-on-year. Air flight also recorded growth during the quarter, with air import and air export contributing around 2.8% and 2.1% of revenue that was given. Transport contributed around 4.6% of revenue when the new deal and a narrow business contributed around 0.04%. The improvement in exports and air price contribution is part of our broader effort to build more balanced business heads. We are seeing opportunity to increase our share of customer requirements beyond traditional C-info and provide a wider range of logistics services. As the disability perspective, the company reported EBITDA margin of 6.5%. The quarterly plan has higher operating costs in line with increase in business activity, while the overall pricing and cost development remain competitive. We remain focused on improving the quality of revenue and maintaining business-based cost management as we scale the business. Moving to our industry list. Renewable energy remains our largest industry vertical and contributing around 38% of revenue during that quarter. At the same time, the contribution from other industries increased meaningfully. Consumer durables contributed around 10% of revenue compared to 7% in Q1 F526-2026, while chemical increased to 7% from 2% in Q1. FI 2026. This reflects the wider consumer base we are building across different industrial and cargo categories. We are also seeing opportunities across apparel, auto, chemical, equipment, engineering, pharmaceutical, and other industrial segments. Our objective is to increase the share of business over time so that growth is not dependent on any more industry. This diversification also allows us to participate in different trade and shipments cycles across the area. On the geographic side, Asia remains our largest region and contributed around 84% of revenue during the quarter. The region remains important for our business given the sourcing and manufacturing activity across markets. While our customer operates, we are also working on increasing our presence across other continent cultures, Africa, Europe, and Europe as we expand our customer relationship. Customer acquisition remain an important area of focus during the quarter. We elect 260 new customers and our repeat customers to approximately 75% during the quarter. I'm the same guy. The contribution from the top 5 customer was around 29% of the revenue. Lower concentration reflects the larger diversification of our customer base and our efforts to build relationships across a wider list of accounts. Along with the customer expansion, we continue to immerse in our operations with operating capabilities during the quarter. We are researching owned vehicles, taking a total of 3 to 80 vehicles. Largely, we have greater control over first-mile and last-mile movements and help us provide more consistent service to customers. We will continue to add capacity selectively based on customer requirements and locations as we see the sustainable demand. As we move ahead, our focus will remain on increasing customer coverage, improving our mix across sea, air, transport, and biodiversity, and expanding our presence across industries. We will also remind ourselves on improving realization and maintaining of discipline as this is a scale. The announcement made in areas where they can improve service. Please now I hand out the call to our BFO to take the flow and financial performance in greater detail. Thank you.

Thank you, sir. Good afternoon, everyone, on the call. I will now take you through the financial and operational performance for the quarter in the 30th, June, 2026. Starting with the financial performance, the revenue from operations for Q1 FY27 was $2,345 million. This represents a growth of 39.5% year-on-year and 19.7% quarter-on-quarter. Including this other income, the total income was Rs. 2,366 million compared to Rs. 1,682 million in Q1 FY26. Coming to the operational profitability, EBITDA for the quarter was Rs. 163 million, compared to Rs. 169 million in FY26, and Rs. 105 million in Q4 FY26. EBITDA margin was 6.9%. On a sequential basis, EBITDA increased by 54.8%, while the margin improved by 150 basis points. That was 107 million with a margin of 4.6 percentage. Coming to the operational matrix, CU's handled during Q1FY27 were 21,841 compared to 26,720, 278 in Q1FY26 and 31,402 in Q4FY26. Looking at the segment performance in more detail, CIM4 generated revenue of around Rs. 1647 million and contributed 70% of our total revenue. Revenue from this segment increased 24.1% each year-on-year. C-exportes generated the revenue around $467 million with growth of 83.5% year-on-year, its contribution increasing to 19.9% from 15.1% in QNFY26. The air-side business recorded significant growth. Air import revenue was around $66 million, increasing 97.1% year-on-year. As export revenue was around $50,000,000, increased to 40.4% year-on-year. Together, the air flight businesses contributed around 4.9% of this revenue during the quarter, as compared to 2.9% in Q1, FY26. North transport revenue was around Rs. 1 or 7 million, contributing 4.6% of revenue. Revenue from this segment increased to 1 or 7.8% year-on-year. Additionally, the company also generated around these 9 million from Barron.

We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on your touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.

Participants, if you wish to ask a question, you will press star and 1.

Ladies and gentlemen, if you wish to ask a question to the management, you will press start and run. Our first question comes from the line of Disha. It's our fire capital. Please go ahead.

Hello. Yeah, I'm audible, sir. Yes, ma'am, I'm audible. Yeah, yeah. Thank you so much for this opportunity. A couple of questions. Firstly, on the international trade side, given, again, the geopolitical situation, what sort of impact are we seeing there, and what sort of steps are we taking to mitigate that?

Madam, if you look at the geopolitical situation, the war in Iran, the U.S., and the U.S. war on Iran, that is a serious implication, especially in the supply side. So, if you look at that, geographically, not in this problem, you should play right now. If you look at the overall volume, 84% of our major contribution comes from Asia, so there is impact, but it's not like major apps be seen with other sales in the market. So I would say there is a minor impact in terms of price, in terms of supply availability and all those things, but it is mitigated in the right manner.

So, no major impact we see in terms of these freight rates and the vessel availability.

We see them, but it's not impacting as much as we expected it's true. We are an Asian-dominated player, so one major contribution comes from Asia to India, it contributes from imports, and the majority happening from the Paris into India.

Right. So, what sort of growth can we look at for this year?

Sorry, madam?

What sort of growth are we targeting for this year, please?

Growth, but, uh, Rajshree has, uh, yearly competition, so maybe people are passing FI 25 numbers.

Sorry, sir, it's not audible.

Uh, ma'am, actually, we expect that it will exceed about 5-25 lbs.

Okay, okay. And in terms of our margins, what will be our outlook? For this quarter, I think we were at around 7%. What is the outcome? Definitely, we have had it in.

Hello? Can you hear us, huh?

Yeah, now I can hear you.

So, margins, everything, and looking low compared to the current.

And what sort of KPES are we doing for this year?

CapEx, we will be completing the whole CapEx program within FI conditions, like investing on the trailers as well as investing on the containers.

And what will be the total amount for that?

So, actually, we will be utilizing the IPO process fully. So, it will be a total amount of the previous 132 crores as mentioned in our prospector. So, we will be utilizing it fully by the end of March.

And what was the KPEX number for the first quarter?

KPEX numbers, so we have purchased for the minimum of KPEX in this Q1. So, I think in Q3, containers will be deployed in Q3. And with respect to the trailers, we have added 42 trailers in Q3.

Forty-two containers have been added?

Trailer, Trailer.

Forty-two Trailer, okay. Yes. And, sir, you mentioned also about increasing presence across Africa and Europe. Could you just elaborate a bit more on that?

Uh, something, madam, if you look at the, uh, uh, U.S. Trailer line, uh, the overall, uh, compared to Around here, the concentration towards concentration into your suffering. If you look at Africa as a whole, as the closest, we being a traditional Asia player, now our concentration also in terms of export also increased. So overall, we are looking more into the West side, like for example Africa, US, Europe, Africa. Customer concentration will be even if priority will be your industry and a sector.

Okay, okay, okay. That is it for myself. Thank you.

Thank you, Mala.

Thank you. A reminder to all participants that you may press star and one to ask a question. The next question comes to the line of Rajiv Pandey with AKPMS. Please go ahead.

So, I have a question, like a couple of questions. What would be, like, now, right now, top five customer contribute to around 30 to 33 percentage of the business.

Where can we see this number reaching in next two to three years?

Hello, am I audible?

Sir, actually we are expecting it to be 15 to 20% because we are diversifying the customer base. So we wanted to increase the number of customers and decrease the customer conversation.

Okay, got it, got it. And the next question from my side was like the airsprite contribution is still in single digit. So what is your approach strategy towards this segment?

Can you repeat in one second?

Yeah. Okay. So as right contribution is still in single digit. So what is your approach and strategy towards the segment?

Sir, if you look at the year or two before, we are not much into advertising itself. It's a C-based company. We are considering more than C-export shipping. In the last two years, we managed to get this number to a reasonable, but going forward, more contribution from in terms of revenue as well as in terms of viral numbers. I don't know exactly on which number we will be there in like next few years or something, but the importance is given into our product to them.

Okay, okay, got it. And one last question from my side that currently you have expanded in Ahmedabad. So do you have any plans to expand the network further? Can you comment on any specific reasons that you plan to target?

Sir, going into plans, like we are planning to expand in other markets, like Hyderabad is one of the things we are concentrating into, and more importance will be given into the sector like Kolkata. Right now, it has been a great operating office. So, obviously, like Kolkata, Hyderabad, Hamadabath, these are sectors which will be even more sales focused and will be developing much faster.

Okay, okay. Got it. Thank you, sir. This was from my side. Thank you, sir.

Thank you. Participants, if you wish to ask a question, you may press star and 1. Ladies and gentlemen, if you wish to ask a question to the management, you will press star and 1. Thank you. As there are no further questions at this time, I would like to hand the conscience over to the management for closing comments.

Thank you once again for joining us today and for your continued interest in Glossus. We appreciate this confidence you have placed in our company. If you have any additional questions, please free to reach out to our Inversor Relations and we will be glad to assist you. Thank you for your kind support and your time. Thank you so much.

Thank you. On behalf of Glottis Limited, that concludes this conference. Thank you for joining us and you will now disconnect your lights.

Thank you.