Glottis (NSE:GLOTTIS) Q1 2027 Earnings Call

0:01 Ladies and gentlemen, good day and welcome to the Glottis Limited Q1 FY 'twenty seven Earnings Conference Call. As a reminder, all participant lines will be in a listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. 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 06/30/2026. We appreciate your participation and interest in Glottis as we begin the new financial year.

0:51 The operating environment during the quarter remained mixed across global logistics and price markets. India 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, price activity across the individual trade lanes remain uneven. In this environment, our focus remains on customer engagement, expanding our services capability and maintaining operational discipline. We delivered good growth in revenue during the quarter. Revenue from operations was INR 2,345 million, an increase of 39.5 year on year.

1:40 EBITDA was INR 163,000,000 with margin of 6.9%, while profit after tax was at INR 107,000,000 with margin of 4.6%. The growth in revenue was supported by better realization as well as favorable business. Ocean price continued to afford for a majority of our revenue, while the contribution from export and add price activity increased during the quarter. This Airtel's group revenue even through container throughput was lower. From volume perspective, our ocean freight container throughput was 21,841 TEUs during the quarter. The lower throughput was partially offset by better realization and higher contribution from results with higher revenue 20% compared to about 15% in the Q1 FY 'twenty six.

2:53 The revenue from Sea Export grew at 83.5% year on year. Our price also recorded growth during the quarter, With our import and our export contributing around two point eight percent and two point one to the 0.04%. The improvement in exports and added tariff wide contribution is part of our broader effort to build a more balanced business base. We are seeing opportunity to increase our share of customer requirements beyond traditional fee input and provide a wider range of logistic services.

3:38 From of We are also the management have been in the business. Made Moving to while chemical increased to 7% from 2% in Q1 FY twenty twenty six. This reflects the wider customer base we are building across different industrial and cargo categories.

4:42 We are also seeing opportunities across apparel, auto, chemical, civil, 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 hot industry. This diversification also allows us to participate in different trade and shipment cycles across the areas. On the geography side, Thank

7:25 you, sir. Good afternoon, everyone, on the call. I will now take you through the financial and operational performance for the quarter ended 06/30/2026. Starting with the financial performance, the revenue from operations for Q1 FY 'twenty seven was thousand $345,000,000 This represents a growth of 39.5% year on year and 19.7% quarter on quarter. Excluding this other income, the total income was INR 2,366 million compared to INR $1,682,000,000 in Q1 FY 'twenty six. Coming to the operational profitability. EBITDA for the quarter was INR 163,000,000 compared to INR 169,000,000 in FY 'twenty six and INR 105,000,000 in Q4 FY 'twenty six.

8:20 EBITDA margin was 6.9%. On a sequential basis, EBITDA increased by 54.8%, while the margin improved by 150 basis points. Was 107,000,000 with a margin of 4.6%. Coming to the operational metrics, TUs handled during Q1 FY 'twenty seven were INR 21,841 compared to INR 26,722 thousand 78 in Q1 FY 'twenty six and 31,202 in Q4 FY 'twenty six. Looking at the segment performance in more detail, CECO generated revenue of around INR $1,647,000,000 and contributed 70% of our total revenue.

9:07 Revenue from this segment increased 24.1 percentage year on year. We exported generated the revenue around $3.04 67,000,000, that's growth of 83.5% year on year, its contribution increasing to 19.9% from 15.1% in Q1 FY 'twenty six. The ad side business recorded significant growth. Ad import revenue was around 56,000,000, increasing 97.1 percentage year on year. Ad export revenue was around 50,000,000, increased two forty point four percentage year on year. Together, the ad based businesses contributed around 4.9 percentage of revenue during the quarter as compared to 2.9 percentage in Q1 FY 'twenty six.

9:56 Road transfer revenue was around rupees 107,000,000, contributing 4.6% of revenue. Was Revenue from this segment increased to 107.8% year on year. Additionally, the company also generated around INR 9,000,000 from during the quarter. And at the quarter end compared to eighty seven days at the end of FY 'twenty six.

11:00 So this reflects the beginning of the normalization we applied in our last call. As the newer customer accounts move into the study in this cycle. On our backward integration program, our own fleet in Q1 FY 'twenty seven stands at 80 vehicles, up from 42 at the end of Q4 FY 'twenty six and seventeen at the end of Q3 FY 'twenty six. Container deployment will start from q three, and we remain on track to substantially complete this CapEx program during FY twenty seven as guided in our previous call. We are happy to update that the reputed monitoring agency, Kirtan, has released the report stating that IPO process we used as planned and there are no deviations.

11:47 Overall, the quarter saw a meaningful increase in revenue and sequential improvement in EBITDA. The key operating trends during the quarter were better relations, higher contribution from the expo growth in ad site businesses. At the same time, the increase in the cost base impacted profitability. We remain focused on improving operating leverage, managing costs and maintaining working capital discipline as the business scales up. As far as revenue is concerned, we expect it to exceed FY 'twenty five numbers. With that, I conclude my remarks and request the operator to open the floor for questions. Thank you. Thank you, ma'am. We will now begin the question and answer session. If you wish to remove yourself from the question queue, you may press star and two.

12:42 Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Ladies and gentlemen, if you wish to ask a question to the management, you may press star and 1.

13:40 Our first question comes from the line of Tisha with Capital. Please go ahead. Hello? Yeah. Am I audible, sir? Yes, ma'am. I'm audible. Yeah. Yeah. Thank you so much for this opportunity. 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 stocks what sort of steps are we taking to mitigate that? Madam, if you look at the geopolitical situation, the one in Iran, and Iran foreign... Sorry. It was on the... It's in Iran Iran. That is serious implication, especially in the supply side.

14:25 So if you look at the, you know, typically, in this from 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 way, madam. So no major impact we see in terms of lease trade rates and the vessel availability? It is them, but it's not impacting as much as we expected it to.

15:11 We have a player, we are an Asian Right. So so what sort of growth then can we look at for this year? Sorry. What? What sort of growth are we targeting for this year? Sorry, sir. It's not audible. Ma'am, actually, we expect that it will exceed our five twenty five numbers.

15:58 Okay. Okay. And in terms of our margins, what will be our outlook for this quarter? I think we're at around 7%. What is the assumption? Will be... We have we have added in. Hello? Madam, can you hear us, sir? Yeah. Now I can hear you, sir. So margins, yes, everything for a little a little more compared with the current. And what sort of CapEx are we doing for this year? CapEx, we will be completing the whole...

16:44 We'll be replacing the whole CapEx program within FY '27, like, investing on the trailers as well as investing on the containers. And what will be the total amount for that? So actually, we'll be placing the IPO process. It will be total amount also INR 132 crores mentioned in our profit. So we will be by the end of March. Right? And what was the CapEx number for the first quarter? CapEx numbers... So we have a purchase on the minimum of CapEx in this q one.

17:30 So we we... I think in q three, we'll be... Containers will be deployed in q three. And with respect to the trailers, we have added 42 trailers in two. 42 containers have been added? Trailers. Trailers. Yeah. 42 trailers. Okay. Yes. And sir, you had mentioned also about increasing presence across Africa and Europe. Could you just elaborate a bit more on that? Madam, if you look at The US trade line, Okay. Okay. Okay. That is it from my side. Thank you.

18:59 Thank you, madam. Thank you. The next question comes from the line of Rajiv Pandey with AKPMS. So I have a question, like, a couple of quick. So my first question would be about, 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?

19:54 Hello? Am I audible? Yeah. Yeah. Yeah. 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 compensation. Okay. Got it. Got it. And the next question from my side was like the Air Flight contribution is still in single digit. So what is your approach strategy towards this segment? Sorry, sir. Can you repeat it once again?

20:41 Yes. Okay. So Air France contribution is still in single digit. So what is your approach and strategy towards this segment? Sir, see, if you look at the see, like year or two before, we are not much into our direct itself. It's a fee based company. We are concentrating more into C, more than C export, Shikan. In the last two years, we managed to get this number to a, like, a reasonable. But going forward, more contribution to... From... In terms of revenue as well as in terms of final numbers are giving a major boost. So I can't comment exactly on which number we will be starting, like, next two years or something, but we will be given into our product to develop.

21:37 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 applying to expand in other markets like Ahmedabad... I'm sorry. Ahmedabad and Ahmedabad. These are sectors which will be even more deals focused and will be developing much further... Faster deals.

22:32 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. Thank you. As there are no further questions at this time, I would like to hand the conference over to the management for closing comments.

23:44 Thank you once again for joining us today and for your continued interest in Glottis. We appreciate this conference, your place in our company. If you have any additional questions, please feel free to reach out to our Investor 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 may now disconnect your lines. Thank you.