Western Carriers India Ltd Management Discussions

Disclaimer

The Management Discussion and Analysis report outlines the Companys objectives, assumptions, expectations and forward-looking statements, as defined under applicable laws and regulations. It should be noted that actual outcomes may vary significantly from those anticipated. Factors that could materially influence the Companys performance include changes in tax legislation, shifts in government policies, prevailing economic conditions in India and other unforeseen circumstances.

Economic Overview

Global Economy¹

The global economy remained resilient during CY2025 because of moderating inflationary pressures and sustained domestic demand across major economies. Global growth remained steady at 3.5% in CY2025, despite persistent geopolitical uncertainties, elevated trade policy tensions and ongoing supply chain realignments. Global inflation moderated to around 4.1% in CY2025, as supply chain disruptions eased and the impact of earlier monetary tightening measures continued to transmit across economies. Lower commodity prices and stabilising logistics costs also contributed to easing price pressure. Emerging Market and Developing Economies (EMDEs) outperformed advanced economies, expanding by 4.5% compared with 1.9%, driven by stronger domestic consumption, public infrastructure investments and improving capital inflows. The U.S. economy continued maintained strong momentum, with GDP growth estimated at approximately 2.1% during CY 2025, supported by resilient labour markets, robust consumer spending and continued investments in technology and artificial intelligence-led infrastructure. The Euro Area recorded modest growth of around 1.4%, reflecting weak industrial activity, softer external demand and continued energy-related pressures. Asian economies remained key contributors to global growth, supported by manufacturing resilience and expanding services activity.

Outlook

Global growth is projected to moderate to 3.0% in CY 2026 before improving to 3.4% in CY 2027. The outlook remains shaped by heightened geopolitical uncertainties, elevated trade fragmentation risks and the economic impact of ongoing regional conflicts in the Middle East and energy market volatility. The U.S. economy is projected to grow by approximately 2.3% in CY 2026 amid moderating consumer demand and tighter financial conditions, while the Europe witness a moderate decline of nearly 0.9%, due to the Middle East unrest and persistent rise in energy prices. Advanced economies overall are expected to witness relatively slower growth amid softer industrial output, fiscal consolidation measures and persistent structural challenges. EMDEs are expected to remain the principal drivers of global growth, supported by resilient domestic demand, infrastructure investment and continued digital and manufacturing expansion. EMDEs are projected to grow by approximately 3.8% in CY 2026 and 4.5% in CY 2027, significantly outpacing advanced economies.

Global inflation is expected to remain elevated in the near term due to energy market disruptions and geopolitical tensions, before gradually moderating over the medium term as monetary conditions stabilise and supply-side pressures ease. Central banks across major economies are expected to continue balancing inflation management with growth support through calibrated monetary policy actions. Despite near-term uncertainties, long-term global economic fundamentals remain positive, supported by technological innovation, supply chain diversification, digital transformation and investments in sustainable infrastructure. However, risks relating to geopolitical conflicts, trade protectionism, commodity price volatility and tighter financial conditions may continue to influence the global economic trajectory over the coming years.

World Economic Outlook Projections

(in % terms)

Indian Economy

Overview²

India remained among the fastest-growing major economies in FY2025–26, demonstrating resilience amid persistent geopolitical tensions, evolving global trade realignments, tariff-related uncertainties and intermittent commodity price volatility. Strong domestic consumption, sustained government capex and expanding manufacturing activity underpinned economic momentum during the year. Real GDP growth for FY 2025–26 is estimated at 7.7%, driven by robust performance across the manufacturing, construction and services sectors.

Government-led infrastructure development continued to play a pivotal role in sustaining economic growth. The Governments capex outlay stood at approximately _11.21 lakh crore during FY 2025–26, reflecting continued emphasis on infrastructure creation, logistics enhancement and crowding in private sector investments.

Indias external sector remained resilient despite ongoing global trade disruptions. Total exports stood at approximately USD 860.09 billion during FY 2025–26, registering growth of around 4.22% over the previous year, driven by healthy performance across engineering goods, electronics, pharmaceuticals, chemicals and technology-led services exports.³ Foreign Direct Investment (FDI) inflows remained strong at approximately USD 64.7 billion⁴ during the year, reflecting sustained investor confidence, policy reforms, improving ease of doing business and Indias growing role within global supply-chain diversification strategies. India also continued to benefit from its demographic advantage, rising digital adoption and expanding formalisation of the economy. Investments in infrastructure, renewable energy, defence manufacturing and industrial corridors further strengthened long-term growth prospects across multiple sectors.

Outlook

Indiaseconomicoutlookremainspositive,supportedbystrong domestic demand, resilient investment activity and continued policy support for manufacturing and industrial development. Real GDP growth for FY 2026–27 is projected to be at 6.6%, positioning India among the fastest-growing major economies globally despite external macroeconomic uncertainties. The Governments continued focus on infrastructure-led growth remain a key economic driver, with capital expenditure for the FY2026–27 budgeted at approximately _12.22 lakh crore. Investments in transportation networks, urban infrastructure, renewable energy, logistics and industrial corridors are expected to strengthen Indias manufacturing competitiveness and improve supply-chain efficiency. Indias external outlook remains positive, underpinned by ongoing trade negotiations, increasing global interest in India as an alternative manufacturing hub and continued diversification of global supply chains. Policy support for domestic manufacturing, including electronics, defence, textiles and advanced engineering sectors create long-term opportunities across industrial value chains. Despite short-term uncertainties from global trade shifts, geopolitical tensions, and fluctuating commodity prices, Indias economy is positioned for strong medium- to long-term growth. This positive outlook is driven by solid macroeconomic fundamentals, a resilient banking sector, robust corporate balance sheets, and continuous public investments. Continued structural reforms, digitalisation initiatives and rising private sector participation are expected to support broad-based economic expansion in the coming years.

Indian GDP Growth Trend
(in %)
FY-2024-25	7.1
FY 2025-26	7.7
FY 2026-27 (P)	6.6*

Industry Overview

Global logistics Industry

The global logistics industry plays a critical role in facilitating international trade, supply chain integration and efficient movement of goods across economies. The industry has recorded strong growth, driven by rising global trade activity, rapid e-commerce expansion, increased outsourcing of logistics operations and rising demand for integrated supply chain solutions. The global logistics market was valued at approximately USD 11.97 trillion in 2025 and is projected to reach nearly USD 22.05 trillion by 2035, reflecting a CAGR of 6.3% during 2026-2035.⁵ Digital transformation, automation and technology-led solutions are reshaping the logistics landscape. The adoption of artificial intelligence, Internet of Things (IoT), GPS-enabled fleet management, predictive analytics, warehouse automation and real-time cargo tracking systems is enhancing operational visibility, route optimisation and supply chain efficiency. In addition, increasing emphasis on green logistics, multimodal transportation and integrated supply chain management is driving investment in sustainable and technology-enabled infrastructure.

The rapid expansion of e-commerce and changing consumer expectations for faster and reliable deliveries remain major growth drivers for the global logistics industry. Demand for last-mile delivery, warehousing, express cargo movement and third-party logistics (3PL) solutions has increased significantly across developed and emerging markets. Third-party logistics

(3PL) accounts for 56.3% of the market in 2025, while road transport represented 59.2% of global transportation demand. Asia-Pacific remained the largest regional market, accounting for nearly 48.7% of the global logistics market share in 2025, bolstered by strong manufacturing activity, rising consumption and sustained infrastructure investment.⁶ Over the medium term, the global logistics industry is expected to benefit from infrastructure development, expanding cross-border trade, increasing adoption of digital supply chains and rising investments in transportation connectivity. Growth in organised retail, manufacturing and industrial activity, along with increasing preference for outsourced logistics solutions, is expected to supports long-term industry expansion.

Indian Logistics Industry⁷

The Indian logistics industry plays a critical role in supporting economic growth, manufacturing expansion and trade competitiveness. The sector is undergoing a significant structural transformation, driven by infrastructure development, policy reforms, increasing formalisation and rising adoption of technology-enabled logistics solutions. The India freight and logistics market is expected to grow from USD 288.89 billion in 2025 to USD 315.89 billion in 2026 and a reach USD 476.51 billion by 2031 at 8.57% reflecting CAGR over 2026-2031. Expansion across e-commerce, organised retail, manufacturing, pharmaceuticals and industrial production continues to drive demand for integrated transportation, warehousing and supply chain management services.

Source: Mordor Intelligence

The adoption of digital logistics platforms, warehouse automation, fleet tracking systems and data-driven supply chain management solutions continues to accelerate across the industry. Expansion of third-party logistics (3PL), fourth-party logistics (4PL), cold-chain logistics and integrated warehousing solutions is accelerating the transition towards organised and technology-enabled operations. Indias emergence as a global manufacturing and sourcing hub, supported by initiatives such as "Make in India" and supply chain diversification strategies, create sustained long-term demand for efficient logistics infrastructure and multimodal transportation services.

The B2B logistics segment continues to remain a key contributor to overall industry demand, supporting sectors such as metals, automotive, engineering, chemicals, FMCG, pharmaceuticals and industrial manufacturing. growing emphasis on just-in-time inventory management, supply chain optimisation and cost-efficient cargo movement is driving higher demand for integrated logistics and value-added supply chain solutions across industrial sectors.

Market Composition and Industry Dynamics

Modal Shift and Multimodal Transportation

Indias logistics industry continues to rely predominantly on road transport for domestic freight and express cargo, primarily due to expansive networks and operational agility However, increasing investments in rail infrastructure, Dedicated Freight Corridors (DFCs), multimodal logistics parks and inland waterways are accelerating the shift towards multimodal transportation solutions. Rail logistics is gradually gaining traction as a cost-efficient and sustainable alternative for bulk cargo and long-haul transportation, while air cargo continues to support high-value and time-sensitive sectors such as pharmaceuticals, electronics and engineering.

Infrastructure Development and Supply Chain Integration

The logistics ecosystem in India is undergoing a significant transformation, driven by large-scale infrastructure development and policy-led modernisation initiatives. Government programmes such as PM Gati Shakti, Bharatmala, Sagarmala and the development of Multimodal Logistics Parks (MMLPs) are improving transportation connectivity, reducing transit timelines and strengthening supply chain integration across regions. Increasing investments in warehousing infrastructure, industrial corridors, freight terminals and port modernisation are further enhancing operational efficiency and enabling scalable logistics operations.

Technology Adoption and Digital Transformation

Technology adoption continues to reshape the logistics landscape in India, with increasing implementation of AI-driven route optimisation, warehouse automation, IoT-enabled fleet management systems and digital freight platforms. Logistics companies are increasingly leveraging data analytics, GPS tracking and cloud-based transportation management systems to improve shipment visibility, operational efficiency and customer service capabilities. Digital initiatives such as e-way bills, FASTag integration and automated documentation processes are also supporting greater operational transparency and streamlined logistics management.

Regulatory Reforms and Ease of Doing Business

The logistics sector has benefited significantly from regulatory reforms aimed at improving ease of doing business and reducing supply chain inefficiencies. Implementation of GST, digitisation of customs procedures, unified digital compliance systems and policy initiatives under the National Logistics Policy are simplifying freight movement and enhancing supply chain efficiency. Continued focus on trade facilitation, multimodal integration and logistics standardisation support long-term industry growth and formalisation.

Workforce Development and Employment Generation

The logistics industry remains one of Indias largest employment-generating sectors, supporting workforce requirements across transportation, warehousing, cargo handling and supply chain management operations. Increasing technology integration and operational sophistication are driving demand for skilled manpower in areas such as warehouse management, digital logistics, fleet operations and supply chain analytics. Industry participants are increasingly focusing on workforce training, skill development and operational safety to support long-term sectoral growth.

Industry Outlook

The Indian logistics industry witness sustained long-term growth driven by manufacturing expansion, infrastructure investments, increasing exports, growth in e-commerce and rising demand for integrated supply chain solutions. Government-led initiatives supporting multimodal connectivity, industrial development and logistics efficiency, combined with increasing private sector investments in warehousing, technology and transportation infrastructure, are expected to strengthen Indias position as a globally competitive logistics and manufacturing hub.

Growth Drivers⁸

Expansion of E-commerce and Omnichannel Retail

The continued expansion of global e-commerce remains a major growth driver for the logistics industry. Global e-commerce sales are projected to surpass USD 6.8 trillion by 2028, driving sustained demand for warehousing, fulfilment centres, parcel delivery networks and last-mile logistics solutions. Rising consumer expectations for faster delivery timelines, same-day delivery models, and omnichannel retail integration is further accelerating investments in distribution infrastructure and logistics optimisation across global markets. Major global retailers and e-commerce players continue to strengthen regional logistics capabilities to support increasing order volumes and supply chain efficiency.

Growth in Global Trade and Regional Supply Chain Integration

Expanding international trade flows and deeper regional economic integration continue to support demand for freight transportation and integrated logistics services.

Global merchandise trade remained resilient during 2025 despite geopolitical uncertainties, supported by trade agreements, supply chain diversification strategies and increased manufacturing activity across emerging markets. Growing cross-border cargo movement across Asia-Pacific, North America and Europe is driving higher demand for multimodal logistics, freight forwarding and supply chain management solutions.

Technology Adoption and Supply Chain Digitisation

The logistics industry is undergoing rapid digital transformationthroughtheadoptionofartificialintelligence, automation, Internet of Things (IoT), predictive analytics and cloud-based transportation management systems. Technology investments across the global logistics ecosystem are enhancing route optimisation, warehouse automation, cargo visibility and fleet utilisation while reducing operational costs and transit timelines. Digital freight platforms, automated warehousing solutions and real-time tracking capabilities are increasingly becoming integral components of modern logistics operations.

InfrastructureDevelopmentandMultimodalConnectivity

Governments and private sector participants across the world continue to invest significantly in transportation and logistics infrastructure development. Large-scale investments in multimodal logistics parks, rail corridors, ports, highways and dedicated freight infrastructure is enhancing connectivity and improving supply chain efficiency. Initiatives such as Indias PM Gati Shakti programme, infrastructure modernisation in North America and trans-European transport connectivity projects are expected to support long-term growth in freight movement and logistics demand globally.

Opportunities & Challenges

Opportunities

Supply Chain Diversification and Nearshoring Trends

Global manufacturers continue to diversify supply chains and reduce overdependence on single-region sourcing models. Nearshoring and regional manufacturing expansion, particularly across North America, Southeast Asia and India, are driving growth in cross-border freight movement, contract logistics and third-party logistics (3PL) services. These structural shifts are creating long-term opportunities for logistics companies with integrated transportation and multimodal capabilities.

Green Logistics and Sustainable Transportation

Increasing focus on sustainability and decarbonisation is accelerating investments in green logistics solutions globally. Adoption of electric commercial vehicles, sustainable aviation fuel (SAF), low-emission shipping solutions and energy-efficient warehousing infrastructure is creating new growth opportunities across the logistics value chain. Customers are increasingly prioritizing environmentally sustainable logistics partners, encouraging industry participants to strengthen ESG-focused logistics capabilities.

Growth in Integrated and Value-Added Logistics Services

Demand for integrated supply chain solutions, including warehousing, inventory management, customs clearance, freight forwarding and end-to-end logistics management, continues to rise across industries. Businesses are increasingly outsourcing logistics operations to improve operational efficiency and reduce supply chain complexities, creating growth opportunities for organized logistics service providers offering comprehensive and technology-enabled solutions.

Expansion of Warehousing and Fulfilment Infrastructure

Rapid growth in e-commerce, organized retail and manufacturing activity is driving significant demand for modern warehousing and fulfilment infrastructure globally. Companies are increasingly investing in automated warehouses, cold-chain facilities, urban fulfilment centres and distribution hubs to improve inventory management and delivery efficiency. This trend is creating substantial opportunities for logistics operators with scalable warehousing and distribution capabilities.

Rising Demand for Multimodal Logistics Solutions

Increasing focus on supply chain optimization and cost efficiency is accelerating adoption of multimodal transportation solutions integrating rail, road, sea and air freight. Multimodal logistics enables improved transit efficiency, reduced handling costs and better cargo visibility, creating opportunities for logistics companies offering integrated transportation networks and end-to-end supply chain solutions.

Growth in Emerging Markets and Manufacturing Shifts

Emerging economies, particularly India, Southeast Asia, Latin America and Africa, are witnessing increasing industrialization, infrastructure investments and manufacturing expansion. Global companies are diversifying manufacturing bases beyond traditional hubs, creating higher demand for freight transportation, industrial warehousing and integrated logistics services in emerging markets.

Challenges

Workforce and Driver Availability Constraints

The logistics sector continues to face challenges relating to driver shortages, skilled workforce availability and rising labour costs across several regions. Increasing demand for logistics services, coupled with workforce aging and operational skill requirements, may impact transportation capacity, delivery timelines and operating costs for logistics operators globally.

Cybersecurity and Technology Risks

Growing dependence on digital infrastructure and interconnected supply chain systems has increased exposure to cybersecurity threats, ransomware attacks and operational disruptions. Logistics companies are required to continuously strengthen cybersecurity infrastructure, data protection mechanisms and IT resilience to safeguard operations and maintain business continuity.

Geopolitical and Trade Route Disruptions

Geopolitical tensions, trade restrictions, regional conflicts and disruptions in global shipping routes continue to impact supply chain stability and freight movement globally.

Cold Chain and Specialized Logistics Growth

The pharmaceutical, healthcare, food processing and chemicals sectors are driving increased demand for temperature-controlled logistics and specialized cargo handling solutions. Rising healthcare spending, vaccine distribution requirements, growth in processed food consumption and expansion of organized retail are creating strong opportunities in cold-chain logistics and specialized supply chain management services.

Digital Logistics and Data-Driven Supply Chains

Growing adoption of artificial intelligence, predictive analytics, IoT-enabled fleet management and digital freight platforms is transforming logistics operations globally. Companies capable of leveraging technology for route optimization, real-time cargo tracking, inventory planning and operational efficiency are expected to gain competitive advantages and improve customer retention.

Infrastructure Modernization and Government Initiatives

Large-scale public and private investments in logistics infrastructure, including dedicated freight corridors, multimodal logistics parks, smart ports and transportation connectivity projects, are expected to enhance supply chain efficiency and reduce logistics costs globally. Government-led initiatives supporting manufacturing, exports and infrastructure modernization are creating long-term growth opportunities for organized logistics service providers.

Events affecting major trade corridors and shipping routes may result in higher transportation costs, extended transit timelines and increased operational uncertainty across international logistics markets.

Fuel Price Volatility and Cost Inflation

Fluctuations in crude oil, diesel and aviation fuel prices continue to impact transportation and freight operating costs across logistics segments. Rising fuel prices, inflationary pressures and supply chain disruptions may adversely affect profitability, particularly for transportation-intensive and asset-heavy logistics operators.

Regulatory and Compliance Requirements

The global logistics industry continues to face increasing regulatory scrutiny relating to emissions standards, carbon reporting, transportation safety, customs compliance and digital documentation requirements. Compliance with evolving regulatory frameworks across multiple jurisdictions may increase operational complexity and compliance-related expenditure for logistics service providers.

Government-Led Transformation of Indias Logistics Ecosystem⁹

Indias logistics sector is undergoing significant transformation driven by large-scale infrastructure investments, policy reforms and digital integration initiatives. The governments continued focus on multimodal connectivity, logistics efficiency, supply chain digitization and ease of doing business reduce logistics costs, improve freight movement efficiency and strengthen Indias competitiveness as a global manufacturing and trade hub.

Infrastructure and Multimodal Connectivity PM Gati Shakti National Master Plan

The PM Gati Shakti initiative continues to strengthen integrated infrastructure planning by bringing together railways, roads, ports, airports and industrial corridors onto a unified digital platform. The programme is aimed at improving multimodal connectivity, accelerating infrastructure execution and reducing logistics inefficiencies across the supply chain ecosystem.

Dedicated Freight Corridors (DFCs)

The Eastern and Western Dedicated Freight Corridors are enhancing Indias rail freight infrastructure by increasing cargo carrying capacity, reducing transit timelines and improving freight efficiency. Increasing operationalization of DFC networks support industrial growth, reduce transportation costs and promote rail-led multimodal logistics solutions.

Multimodal Logistics Parks (MMLPs)

The Government continues to develop Multimodal Logistics Parks across key industrial and logistics hubs under the Bharatmala programme. These integrated logistics facilities are expected to improve warehousing, freight consolidation, cargo handling and transportation efficiency while reducing overall logistics costs.

Maritime Amrit Kaal Vision 2047

The Maritime Amrit Kaal Vision 2047 aims to strengthen Indias maritime infrastructure through port modernization, capacity expansion, automation and sustainable maritime initiatives. The programme enhance coastal shipping, improve trade connectivity and position India as a major global maritime and logistics hub.

Bharatmala and Sagarmala Initiatives

Infrastructure programmes such as Bharatmala and Sagarmala continue to strengthen highway connectivity, port infrastructure and coastal logistics capabilities across India. These initiatives are improving cargo movement efficiency, reducing transit bottlenecks and supporting integrated freight transportation networks.

Digitalization and Technology Integration Unified Logistics Interface Platform (ULIP)

ULIP is emerging as a key digital integration platform for the logistics sector by enabling seamless data exchange among logistics stakeholders, ministries and service providers. The platform supports real-time shipment tracking, operational visibility and improved supply chain coordination.

Logistics Data Bank (LDB)

The Logistics Data Bank initiative enhances real-time tracking and visibility of EXIM containers across Indias logistics network. The platform improves cargo traceability, operational transparency and supply chain reliability for exporters, importers and logistics service providers.

E-Way Bill System

The E-Way Bill system has streamlined interstate movement of goods through digital documentation and automated compliance processes. The system supports faster cargo movement, improved transparency and reduction in paperwork-related delays across transportation operations.

Regulatory Reforms and Ease of Doing Business National Logistics Policy (NLP)

The National Logistics Policy continues to support the development of an efficient and integrated logistics ecosystem in India. The policy focuses on reducing logistics costs, improving operational efficiency, promoting multimodal transportation and strengthening digital integration across the supply chain network.

Goods and Services Tax (GST)

GST remains one of the most significant structural reforms for the logistics industry by streamlining interstate goods movement and reducing supply chain inefficiencies. The unified taxation framework has improved transportation efficiency, optimized warehousing networks and reduced transit timelines across the country.

Customs and Trade Facilitation Reforms

Digitization of customs procedures and trade documentation processes continues to improve cargo clearance timelines and ease of doing business for EXIM trade participants. Technology-enabled trade facilitation measures are strengthening operational efficiency across Indias international logistics ecosystem.

Workforce Development and Sectoral Competitiveness Gati Shakti Vishwavidyalaya (GSV)

Gati Shakti Vishwavidyalaya continues to support skill development and talent creation for Indias transportation a nd logistics sector. The institution focuses on developing specialized capabilities in logistics, infrastructure planning and supply chain management to meet the sectors evolving workforce requirements.

Logistics Ease Across Different States (LEADS)

The LEADS framework assesses logistics performance across Indian states and union territories, helping identify infrastructure gaps, operational challenges and policy priorities. The initiative supports competitive federalism and encourages states to improve logistics efficiency and investment attractiveness.

Technology Adoption in the Indian Logistics Sector

Technology is playing an increasingly transformative role in the Indianlogisticssector,enhancingoperationalefficiency,supply chain visibility and service reliability. Increasing digitalization, evolving customer expectations and the growing complexity of supply chains are accelerating the deployment of advanced technologies across transportation, warehousing and freight management operations. Recent global disruptions, including pandemic-led supply chain challenges and geopolitical uncertainties, have reinforced the importance of resilient, technology-enabled logistics ecosystems.

The Indian logistics industry is increasingly adopting digital freight platforms, AI-driven route optimization, GPS-enabled fleet tracking, warehouse automation, cloud-based transportation management systems and Internet of Things (IoT)-enabled monitoring solutions. These technologies are helping logistics providers improve shipment visibility, optimize transit timelines, enhance asset utilization and reduce operational inefficiencies across the supply chain network.

Key Drivers for Technology Adoption

Need for End-to-End Visibility and Traceability

Increasing customer expectations and supply chain complexities are driving demand for real-time shipment tracking and cargo visibility solutions. Advanced tracking systems, integrated digital platforms and data-driven monitoring capabilities are enabling better operational control, faster decision-making and improved customer experience across logistics operations.

Transition Towards Integrated and Agile Supply Chains

The logistics sector is witnessing a gradual shift from fragmented and linear supply chains towards integrated, interconnected and agile logistics networks. Companies are increasingly leveraging digital technologies to strengthen supply chain resilience, improve coordination across transportation modes and respond more effectively to operational disruptions and market uncertainties.

Automation and Operational Efficiency Enhancement

Automation technologies are being increasingly deployed across warehousing, cargo handling and transportation operations to improve process efficiency and reduce manual intervention. Automated sorting systems, warehouse management systems, robotics and AI-enabled planning tools are helping logistics operators optimize resource utilization, reduce turnaround time and improve service reliability.

Sustainability and Green Logistics Initiatives

Environmental concerns, regulatory developments and increasing focus on sustainable operations are encouraging logistics companies to adopt greener and technology-enabled solutions. Fleet optimization systems, digital documentation, route planning technologies and energy-efficient logistics infrastructure are supporting lower emissions, reduced fuel consumption and improved sustainability performance across the logistics ecosystem.

Growth of E-commerce and Digital Supply Chains

The rapid expansion of e-commerce, organized retail and omnichannel distribution models is accelerating the adoption of digital logistics technologies across the sector. Growing demand for faster deliveries, efficient inventory management and seamless last-mile logistics is driving investments in technology-enabled warehousing, fulfilment and transportation solutions.

Data Analytics and Predictive Decision-Making

Logistics companies are increasingly leveraging data analytics, predictive modelling and AI-driven insights to optimize supply chain planning, forecast demand and improve operational efficiency. Data-driven decision-making capabilities are helping organizations enhance inventory management, reduce logistics costs and strengthen overall supply chain responsiveness.

Technology Stack Powering Modern Logistics

The logistics industry is accelerating digital technologies to build more agile, efficient and resilient supply chains. Technologies such as real-time shipment visibility, automated warehousing, predictive analytics and intelligent fleet management are reshaping how logistics operations are planned, executed and monitored across the value chain.

Intelligent Supply Chain Technologies

Technology	Key Applications Across Logistics Operations	Strategic Impact
Blockchain	Smart contracts, paperless documentation, cargo traceability and secure transaction management	Enhances transparency, reduces documentation inefficiencies and improves security across supply chain operations. Blockchain-based systems also strengthen shipment authentication and operational reliability in global trade networks.
Big Data Analytics	Demand forecasting, route optimization, predictive maintenance, fuel management and freight planning	Supports data-driven decision-making, improves fleet utilization and enhances operational efficiency through optimized logistics planning and reduced turnaround time.

 

Technology	Key Applications Across Logistics Operations	Strategic Impact
Cloud Computing	Fleet management systems, warehouse management platforms, cargo visibility tools, ERP integration and real-time monitoring	Enables scalable and integrated logistics operations with improved coordination, real-time visibility and faster information flow across supply chain networks.
Autonomous Vehicles and Smart Equipment	Automated cargo handling systems, autonomous trucks, smart warehouse equipment and intelligent transportation systems	Expected to improve operational efficiency, reduce manual intervention, enhance safety standards and optimize transportation and cargo handling operations over the long term.
Drones	Last-mile delivery, emergency logistics support, medical supplies transportation and remote cargo access	Improves delivery speed, operational flexibility and connectivity in hard-to-reach areas while supporting rapid-response logistics capabilities.
Digital Twins	Virtual modelling of warehouses, transportation networks, ports and logistics infrastructure	Enables simulation-based planning, operational optimization and disruption management by creating digital replicas of physical logistics assets and supply chain networks.

Technology-Led Transformation of Logistics

The adoption of intelligent logistics technologies is accelerating the transition towards more agile, integrated and customer-centric supply chain ecosystems. Increasing investments in automation, predictive analytics, digital infrastructure and real-time monitoring capabilities are expected to enhance operational resilience, improve cost efficiency and support the long-term transformation of Indias logistics sector.

Accelerating Digital Transformation in Indian Logistics

The Indian logistics sector is undergoing a rapid digital transformation. Driven by governments technology initiatives, private sector investments and growing demand for intelligent supply chain solutions. The focus on integrated digital infrastructure, real-time cargo visibility and automated logistics management. These automated supply chain solutions are boosting operational efficiency, transparency and ease of doing business nationwide.

Government Initiatives Enabling Technology Adoption

Initiative	Focus Area	Impact on Logistics Ecosystem
Unified Logistics Interface Platform (ULIP) ICEGATE and Digital Customs Platforms	Integrated digital logistics platform enabling real-time data exchange across transportation modes and government systems Electronic customs processing, digital documentation and automated cargo clearance systems	Enhances cargo visibility, improves operational coordination and supports seamless digital integration across the supply chain network. Streamlines EXIM trade procedures, reduces documentation timelines and improves trade facilitation efficiency.
E-Logs and NLP Digital Initiatives	Digital grievance redressal, logistics process integration and operational transparency	Supports faster issue resolution, improved stakeholder coordination and increased efficiency across logistics operations.
Enterprise Business System (EBS) Integration at Ports	Standardisation and automation of port operations and cargo workflows	Improves operational consistency, enhances cargo handling efficiency and supports port modernization initiatives.
Public–Private Partnerships (PPP) and Startup Ecosystem Support	Encouraging innovation, logistics technology development and digital infrastructure investments	Accelerates adoption of emerging technologies, promotes logistics innovation and strengthens Indias digital logistics ecosystem.

Key Challenges in Technology Adoption

Legacy Systems and Operational Fragmentation

Widespread dependence on legacy technology and manual documentation in the logistics ecosystem continues to restrict the speed of digitization and standardization.

Lack of Interoperability Across Platforms

Fragmentation among digital platforms, stakeholders and transportation networks continues to create integration challenges, affecting seamless data sharing and supply chain visibility.

Data Governance and Cybersecurity Concerns

With rapid digitization, the logistics sector is increasingly focusing on robust data management, resilient cybersecurity, and strict regulatory compliance to safeguard privacy and operations.

Need for Greater Ecosystem Coordination

Effective digital transformation requires an aligned supply chain ecosystem, where government, logistics, and tech sectors collaborate seamlessly to connect infrastructure and data.

Road Ahead

The future of the domestic logistics sector is expected to be driven by increasing adoption of advanced technologies such as Artificial Intelligence (AI), Internet of Things (IoT), Blockchain, automation and predictive analytics. Investment in digital marketplaces, collaborative logistics platforms and smart supply chain solutions is expected to improve operational agility, reduce logistics costs and improve customer experience.

Concurrently, the increasing focus on sustainable logistics and green supply chain practices is encouraging adoption of technology-enabled solutions that improve fuel efficiency, optimize transportation networks and reduce environmental impact. Collaboration among government bodies, industry participants and technology innovators are expected to accelerate the development of a more resilient, efficient and future-ready logistics ecosystem in India.

Sustainability in the Logistics Sector

Sustainability is emerging as a core priority for Indias logistics industry as stakeholders seek to build environmentally responsible and energy-efficient supply chains. Government initiatives, infrastructure modernization and growing adoption of green logistics practices are encouraging the transition towards lower-emission transportation networks and sustainable freight movement solutions. Increasing adoption of electric mobility solutions, green warehousing practices and energy-efficient logistics infrastructure is further strengthening the industrys sustainability transition.

Outlook

The Indian logistics sector is expected to deliver sustained long-term growth, underpinned by strong economic activity, infrastructure investments, rising manufacturing output and expanding consumption demand. Growth in e-commerce, industrial production, exports and organised retail is likely to drive demand for integrated transportation, warehousing and supply chain management solutions across the country. While infrastructure gaps, operational fragmentation and regulatory complexities continue to persist, ongoing modernisation initiatives, technology integration and sustainability-focused investments support long-term industry expansion. Over the long term, Indias logistics sector will remain a critical enabler of the countrys manufacturing growth, trade competitiveness and economic development ambitions.

Company overview

Western Carriers (India) Limited is among Indias leading private, multimodal, rail-focused 4PL asset-light logistics companies, offering integrated supply chain solutions across road, rail, water and air transportation. The Company provides end-to-end logistics and warehousing services, including customised handling, transportation, freight forwarding, stevedoring, customs clearance and supply chain management solutions. With decades of operational experience, the Company has established a strong presence across key industrial sectors such as metals, mining, FMCG, pharmaceuticals, chemicals and engineering, catering to both domestic and international clients through a widespread logistics network.

The Companys business model is anchored in multimodal transportation, operational efficiency and long-standing customer relationships. Its integrated logistics capabilities, bolstered by technology-enabled operations and strategic infrastructure partnerships, facilitate efficient cargo movement and optimised turnaround time for clients. Over the years, the Company has strengthened its market position by expanding service offerings, enhancing warehousing capabilities and leveraging rail-led logistics solutions to improve cost efficiency and sustainability. As Indias logistics sector undergoes greater formalisation, infrastructure development and supply chain transformation, the Company remains well positioned to capitalise on emerging growth opportunities in integrated logistics and multimodal transportation services.

Operations

Western Carriers (India) Limited operates an integrated, asset-light multimodal logistics network, providing end-to-end supply chain and transportation solutions across domestic and international markets. The Companys operational capabilities span rail, road, ocean, air and inland water transport, supported by warehousing, cargo handling, customs clearance and distribution services. Its diversified logistics network, technology-enabled processes and customer-centric operating model enable efficient cargo movement, operational flexibility and scalable logistics solutions across multiple industries.

Warehousing and Redistribution Centres

Western Carriers operates a strategically located warehousing and redistribution network across key industrial and consumption hubs in India. Its warehousing capabilities support inventory management, cargo storage, distribution and supply chain optimization requirements of customers. The Company also leverages ERP-enabled systems to facilitate seamless operational coordination and data integration across its logistics network.

Ocean and Air Freight

The Company provides integrated ocean, coastal, inland waterway and air freight logistics solutions for domestic and international cargo movement. Its services include breakbulk and containerized cargo transportation, barging services and air logistics solutions for time-sensitive shipments, enabling flexible and efficient freight management based on customer requirements.

Custom House Agency

The Company possesses customs house agency licenses across major ports in India, enabling efficient customs clearance and improved visibility over EXIM cargo movement. Its customs handling capabilities facilitate timely documentation, cargo processing and dispatch of goods across key ports and trade routes.

Cargo Handling Services

Western Carriers offers specialized cargo handling services supported by operational equipment such as reach stackers, forklifts, hydras and excavators. These capabilities enable efficient loading, unloading, container management and cargo handling operations across logistics and transportation activities.

Road Transport

The Company provides road transportation and distribution services for inbound and outbound cargo movement, including transportation of raw materials, semi-finished goods and finished products. Its road logistics solutions support supply chain connectivity, market distribution and integrated multimodal transportation requirements.

Rail Transport

Rail logistics remains a key component of the Companys multimodal transportation network. The Company provides rail-based cargo movement solutions through mini-rakes, jumbo rakes and parcel cargo express train operations, enabling efficient bulk cargo transportation and long-distance freight movement while maintaining operational flexibility through its asset-light business model.

Multimodal Transportation

The Company integrates rail, road, sea, river and air transportation services to provide seamless multimodal logistics solutions. Its multimodal capabilities help optimise transit efficiency, reduce cargo handling risks, minimise documentation complexities and improve cost efficiencies for customers across diversified sectors.

Single Window Logistics

The Company offers customised single-window logistics solutions designed to address end-to-end customer supply chain requirements. Through integrated logistics management and coordinated service offerings, the Company provides tailored solutions aimed at enhancing operational efficiency, supply chain visibility and customer service experience.

What sets Western Carriers apart

Integrated Multimodal Logistics Network

Multimodal logistics solutions across rail, road, ocean, inland waterways and air transportation. The Companys ability to combine multiple modes of transport enables efficient cargo movement, optimized transit timelines and reduced cargo handling risks. This integrated approach enhances supply chain reliability while helping customers improve operational and cost efficiencies.

Asset-Light and Scalable Business Model

Western Carriers operates through an asset-light business model, enabling operational flexibility, scalable capacity management and optimized cost structures. By leveraging leased infrastructure, third-party transportation networks and strategic operational partnerships, the Company is able to efficiently manage varying cargo volumes and customer-specific logistics requirements across geographies.

Rail-Focused Logistics Expertise

Rail logistics remains a key differentiator for the Company, supported by its capabilities in handling mini-rakes, jumbo rakes and parcel cargo express train movements. The Companys rail-road integrated transportation model enables efficient bulk cargo handling, long-distance freight movement and cost-effective logistics solutions for customers across industries.

End-to-End Single Window Solutions

The Company provides integrated single-window logistics solutions covering transportation, warehousing, cargo handling, freight forwarding, customs clearance and distribution management. Its ability to deliver comprehensive end-to-end logistics services under a unified operational framework simplifies supply chain management and enhances customer convenience.

Technology-Enabled Operations

The Company leverages ERP-enabled systems and technology-driven operational processes to enhance supply chain visibility, operational coordination and real-time data integration. Its technology-backed logistics management capabilities support efficient planning, execution and monitoring of cargo movement across the supply chain network.

Diversified Industry Presence

The Company caters to a diversified customer base across sectors including metals, mining, FMCG, pharmaceuticals, chemicals and engineering. Its sectoral expertise and customized logistics solutions enable it to address varied cargo handling and supply chain requirements across industries.

Technology Integration

Technology is an integral part of Western Carriers (India) Limiteds logistics operations, enabling greater visibility, control and efficiency across its asset-light operating model. The Company leverages an integrated ERP and transport management system to monitor consignments across transportation modes and manage key operational and financial processes, including consignment management, billing, invoicing, accounting and GST compliance. GPS-enabled fleet tracking provides real-time visibility of cargo and container movements, while technology-enabled reporting supports proactive shipment monitoring and customer-specific service requirements. The Company also deploys digital tools for e-way bill monitoring, enabling timely identification and resolution of exceptions and supporting compliance across its logistics operations.

Key capabilities of the Companys technology infrastructure include:

Real-Time Fleet and Shipment Visibility: GPS-enabled tracking provides real-time visibility of vehicles, cargo and container movements, enabling closer monitoring of shipment status and facilitating timely interventions.

Customer-Centric Reporting: The ERP and transport management systems generate customised shipment and fleet reports at defined intervals, enabling customers to track consignments and receive visibility aligned with their operational requirements.

Integrated Billing and Financial Processes: The integrated ERP platform supports billing, invoicing and accounting processes, including generation of e-invoices, improving process efficiency and reducing manual intervention.

Digital Compliance Management: Technology-enabled monitoring of e-way bills facilitates tracking of their generation, cancellation and rejection, allowing potential exceptions to be identified and corrective action to be taken within prescribed timelines.

These capabilities strengthen operational visibility, process discipline and customer responsiveness, while supporting the Companys ability to deliver reliable and timely logistics services at scale.

Gati Shakti Multi Modal Cargo Terminal

The Companys Gati Shakti Multi Modal Cargo Terminal (MMCT) at Devaliya, near Morbi, is fully operational and strategically strengthens its presence in Western India. The terminal serves the tiles, ceramics, chemicals, agri and food-grade industries, with its location providing a first-mile cost advantage.

During FY2026, lower activity in the tiles industry due to propane and natural gas shortages impacted throughput, while the Company mitigated the impact by diversifying into industrial chemicals, salt and FMCG. The terminals storage, consolidation and flexible routing capabilities, along with connectivity to North, South and East India, provide a platform for expanding domestic cargo volumes and penetrating new customers and industries.

Consolidated Financial Performance of the Last 5 Year

PARTICULARS (_ CR)	FY22	FY23	FY24	FY25	FY26
REVENUE FROM OPERATIONS	1470.9	1633.1	1685.8	1725.7	1829.2
TOTAL REVENUE	1470.9	1633.1	1685.8	1725.7	1829.2
OPERATIONAL EXPENSES	1280.4	1421.3	1436.6	1489.8	1615.0
GROSS PROFIT	190.5	211.7	249.2	236.0	214.2
GROSS PROFIT MARGIN	12.9%	13.0%	14.8%	13.7%	11.7%
EMPLOYEE EXPENSES	37.0	41.8	46.9	53.1	61.4
OTHER EXPENSES	49.5	48.3	56.2	62.9	68.0
EBITDA	104.0	121.7	146.1	119.9	85.0
EBITDA MARGIN (%)	7.1%	7.4%	8.7%	6.9%	4.6%
OTHER INCOME	4.9	4.8	5.6	13.2	14.5
DEPRECIATION	11.6	15.3	21.2	23.8	28.3
EBIT	97.3	111.2	130.5	109.3	71.2
EBIT MARGIN (%)	6.6%	6.8%	7.7%	6.3%	3.9
FINANCE COST	13.9	15.1	22.2	21.5	18.5
SHARE OF PROFIT OF AN ASSOCIATE	0.0	0.0	0.1	0.0	0.0
PROFIT BEFORE TAX	83.4	96.1	108.4	87.8	52.7
PROFIT BEFORE TAX(%)	5.7%	5.9%	6.4%	5.1%	2.9%
TAX	22.2	24.5	28.1	22.7	13.9
PROFIT AFTER TAX	61.1	71.6	80.3	65.1	38.8
PAT MARGIN (%)	4.2%	4.4%	4.8%	3.8%	2.1%
EPS (AS PER PROFIT AFTER TAX)	7.8	9.1	10.2	7.2	3.81

Key Financial Ratios

PARTICULARS	FY25	FY26
1 Revenue from Operations (_ Million)	17257.20	18292.38
2 Revenue growth rate (%)	2.37	6.00
3 EBITDA (_ Million)	1199.37	849.74
4 EBITDA growth rate	-17.95	-29.15
5 EBITDA Margin (%)	6.95	4.65
6 Profit after tax (PAT) (_ Million)	651.30	388.16
7 PAT Margin (%)	3.77	2.12
8 Net Debt/EBITDA	0.00	2.1
9 Return on Equity (RoE) (%)	10.62	4.58
10 Return on Capital Employed (RoCE) (%)	12.50	7.97
11 Working Capital Days	111.00	120
12 Debt to Equity Ratio	0.21	0.25
13 Consolidated Throughput (Volume in TEU)	213475.00	226578.00
14 Volume growth	0.46	6.13
Throughput by multimodal movement (TEU)
15 - Domestic	79840.00	86353.00
16 - EXIM	133635.00	140225.00

Outlook

Western Carriers (India) Limited is positioned to pursue growth through geographic expansion, new customer acquisition and broadening of its integrated logistics service portfolio. The Company will focus on increasing the share of higher-value logistics solutions, improving operational efficiency and enhancing asset utilisation to support margin expansion. Investments in technology, fleet modernisation and strategic partnerships are expected to strengthen service capabilities and expand market reach. By deepening integration with customers supply chains and offering end-to-end logistics solutions, the Company aims to enhance customer value, improve service quality and strengthen its competitive position in the Indian logistics industry.

Human resources

The Company recognises that its workforce is central to driving growth and supporting the achievement its long-term objectives. Human Resource initiatives focus on attracting, developing and retaining the right talent to ensure the organisation has the skills, capabilities and leadership required to address changing business challenges. Acting as a strategic partner, HR enables innovation, strengthens employee engagement and builds resilience, positioning people as the Companys greatest competitive advantage. Western Carriers is committed to providing a positive work environment and supporting the continuous development of its employees to secure long-term success. In addition, employee safety and wellbeing remain integral, with dedicated measures in place to maintain a secure, healthy and supportive workplace.

Risk Management

Risk Category	Risk Details	Mitigation Measures
D Economic Risk	Fluctuations in macroeconomic conditions, inflationary pressures, geopolitical uncertainties and changes in interest rates may impact industrial activity, trade volumes and overall logistics demand, thereby affecting operational performance and profitability.	The Company continues to strengthen its domestic logistics operations, expand multimodal infrastructure capabilities and diversify service offerings across sectors and geographies. Its asset- light operating model and focus on operational efficiency enhance resilience during periods of economic volatility.
Fuel Price and Freight Cost Risk	Volatility in fuel prices and changes in transportation-related costs may adversely impact operating margins and overall cost structures.	The Company has incorporated Diesel Price Variation Clause (DPVC) mechanisms in major customer contracts, enabling pass-through of fuel cost fluctuations. In rail logistics operations, haulage charge revisions are generally recoverable through customer contracts, thereby mitigating margin pressures arising from cost volatility.
Customer Concentration Risk	Dependence on a limited number of customers or specific sectors, particularly metals and mining, may expose the Company to sector-specific demand fluctuations and revenue concentration risks.	The Company continues to diversify its customer base across sectors such as FMCG, pharmaceuticals, chemicals, industrials and MSMEs while strengthening long-term customer relationships through integrated logistics and value-added solutions.
Infrastructure and Network Risk	Disruptions in transportation infrastructure, including rail networks, roads, ports and warehousing facilities, may impact cargo movement, operational efficiency and service timelines.	The Companys multimodal logistics capabilities enable cargo movement through alternative transportation modes, allowing operational flexibility and minimizing disruption risks arising from infrastructure bottlenecks or maintenance shutdowns.
Human Resource Risk	Shortage of skilled manpower, employee attrition, labour disputes or workforce disruptions may adversely impact operational continuity and service quality.	The Company focuses on employee engagement, workforce training, skill development and internal talent enhancement initiatives to strengthen organizational capabilities and maintain operational efficiency.

 

Risk Category	Risk Details	Mitigation Measures
Operational Risk	The Company is exposed to operational risks including accidents, cargo damage, equipment failures, warehousing disruptions and transportation-related incidents that may affect service continuity.	The Company follows preventive maintenance practices, operational monitoring systems, safety protocols and employee training programs across its logistics network to mitigate operational disruptions and enhance service reliability.
Technology and Cybersecurity Risk	Disruptions in technology infrastructure, cybersecurity threats, system failures or data breaches may adversely affect logistics operations, customer service and business continuity.	The Company leverages integrated technology systems, backup infrastructure, cybersecurity measures and fail-safe operational processes to enhance system reliability, operational visibility and data security.
Financial Risk	Risks relating to liquidity management, financing obligations, working capital requirements and interest rate fluctuations may impact financial stability and operational flexibility.	The Company maintains prudent financial management practices supported by a relatively low debt profile, healthy profitability levels and disciplined capital allocation, enabling adequate liquidity and financial flexibility.

Internal control and their adequacy

The Company has established internal financial control systems that are suited to its size,complexity and the nature of its operations. These controls are designed to ensure the accurate preparation and fair presentation of financial statements. To maintain transparency and independence, regular internal audits are conducted by an external, independent agency, with the findings and recommendations placed before the Audit Committee for review. The Board derives confidence from these audits regarding the effectiveness and reliability of the Companys financial controls. In addition, the internal audit team continuously monitors and evaluates operations to reinforce the effectiveness of these control mechanisms.