Logistics company Tiger Logistics (India) Ltd announced its third quarter results for FY2026, reporting a net profit of ₹5.94 crore for the October to December quarter. According to latest reports, the company's revenue from operations stood at ₹139.02 crore during the quarter, reflecting a 13.37% sequential decline from the previous quarter. The logistics solution provider, which recently debuted on the National Stock Exchange (NSE), is engaged in providing a range of logistics services across North India.
As reported by latest market data, Tiger Logistics shares closed ₹32.25, down 2.63% on Friday following the results announcement. The stock has experienced significant corrections over longer periods, declining 39.14% in the last one year, 14.31% over three years, and 175.28% over five years. Despite these recent declines, the stock has delivered impressive returns over longer timeframes, yielding 1432.09% returns over five years. Trading activity has also declined with delivery volume dropping 71.85% compared to the five-day average, indicating waning investor participation.
The latest quarterly results indicate several operational challenges for Tiger Logistics. The company reported net sales of ₹139.02 crore, down 13.37% sequentially, which is particularly concerning as Q3 is typically a stronger period for logistics companies. Net profit fell 29.5% compared to the previous quarter, while operating margin contracted to 5.45%, marking the lowest level in recent quarters. This combination of declining revenues and profit margins raises concerns about the company's ability to manage costs effectively, with the deteriorating operating margin highlighting potential pricing pressures or operational inefficiencies.
According to ET Now, Tiger Logistics forayed into renewable energy logistics business earlier this year through a separate vertical called TiGreen. The company is targeting ₹100 to ₹150 crore additional revenue from the renewable energy logistics business. This strategic expansion represents the company's diversification into the growing renewable energy sector, though the recent quarterly results reflect operational challenges that need to be addressed for the company to regain momentum.
Despite operational challenges, Tiger Logistics maintains a strong return on equity of 34.49% and return on capital employed of 17.17%, demonstrating efficient use of capital. The company has a market capitalization of ₹532 crore and total assets of ₹104.35 crore as of March 2020. Recent analysis indicates the stock is undervalued with a PE ratio of 15.22, trading below peers like Container Corporation (PE of 30.18) and Delhivery (PE of 236.69). The company has also declared a 10% dividend of ₹1 per share with an ex-date of December 1, 2021, though the dividend yield remains at 0%.
