OM Freight Forwarders Limited IPO

30 Sep 2025 , 12:03 PM

Om Freight Forwarders Limited is a third‑generation, Mumbai‑based logistics and freight‑forwarding group. The company offers end‑to‑end supply‑chain solutions that include customs‑house agency services, sea‑ and air‑freight forwarding, multimodal transportation, vessel‑agency, bonded‑warehouse operations and specialised project‑cargo handling. With more than four decades of experience, a pan‑India network of major ports and airports, and a suite of international subsidiaries, Om Freight has built a strong brand recognised for speed, compliance and technology‑enabled service delivery.

Offer details of the IPO

• Total Offer Size – The IPO comprises of a total offer size of upto INR 122.3 cr. It combines an offer for sale of INR 97.9 cr and a fresh issue of INR 24.4 cr.
• The shares being sold by existing shareholders are held by:
• Rahul Jagannath Joshi (Promoter) – 3,987,500 shares
• Harmesh Rahul Joshi (Promoter) – 2,537,500 shares
• Kamesh Rahul Joshi (Promoter) – 725,000 shares

Price Band: INR 128 to INR 135 per Equity Share

Book‑Running Lead Manager

• Smart Horizon Capital Advisors Private Limited

Indian logistics and freight‑forwarding industry – Overview

The Indian logistics and freight‑forwarding industry is the backbone of the country’s supply chain. It moves raw materials, intermediate goods, and finished products across a vast geography, still heavily reliant on road transport but rapidly adopting multimodal options. The sector is highly fragmented, with over 80 % of freight handled by unorganised operators. However, organised, technology‑enabled players (3PL, 4PL, 5PL) are growing fast due to rising demand for faster, more efficient, and transparent supply-chain solutions.

Table: Key segments

Key Segment	What it Covers
Road freight	Truck‑based haulage of non‑bulk and time‑critical cargo; the dominant mode (≈ 63 % of total freight tonnage).
Rail freight	Bulk commodities (coal, cement, iron ore, fertilisers) and increasingly containerised cargo on the Eastern & Western Dedicated Freight Corridors (DFCs).
Coastal / Inland‑waterway shipping	Low‑cost movement of bulk and semi‑bulk cargoes along the 7 major national waterways and coastal routes.
Air freight	High‑value, perishable or time‑sensitive shipments (pharma, electronics, precious metals).
3PL services	End‑to‑end logistics (transport, customs clearance, warehousing, value‑added services) for manufacturers, e‑commerce and FMCG players.
4PL / 5PL	Integrated supply‑chain orchestration, data analytics platforms and digital freight marketplaces that aggregate demand across multiple 3PLs.
Organised warehousing	Grade‑A/B bonded and private warehouses that support 3PL, e‑commerce and cold‑chain requirements (currently only ~ 17 % of total warehousing stock).
Unorganised warehousing	Small, fragmented facilities that still dominate the market (≈ 83 %).

Source: RHP

The industry’s growth is being propelled by three macro‑drivers:

1. E‑commerce & quick‑commerce– a sustained shift to online shopping (including Tier‑2/3 cities) is creating relentless demand for both line‑haul and ultra‑fast last‑mile delivery.
2. Infrastructure & policy reforms– PM Gati Shakti, the National Logistics Policy (2022), Bharatmala, Sagarmala and the completion of the DFCs are expanding capacity, reducing logistics cost targets (8‑10 % of GDP) and shifting freight from road to rail/coastal modes.
3. Manufacturing & export push– Make‑in‑India, Production‑Linked Incentive (PLI) schemes and a projected 6‑7 % GDP growth in FY 2025 generate healthy freight volumes for automotive, pharma, consumer durables and bulk commodities.

 

Table: Growth‑Rate Snapshot (Past vs Future)

Segment	Past Growth (FY 2022‑23 E)	Recent Growth (FY 2023‑24 E)	Near‑Term Outlook (FY 2024‑25 P)	CAGR FY 24‑29 P	Comment
Road freight (BTKM)	6‑8 %	8‑10 %	5‑7 %	4‑6 %	Road remains the largest share, but growth is moderating as rail and coastal modes gain traction and congestion‑related costs rise.
Rail freight (BTKM)	9‑11 %	4‑6 %	6‑8 %	10‑12 %	Rail is rebounding strongly after DFC commissioning; bulk‑commodity volumes and dedicated‑freight‑train policies are key catalysts.
Coastal shipping (BTKM)	11‑13 %	7‑9 %	10‑12 %	5‑7 %	Coastal mode benefits from Sagarmala ports and lower per‑tonne cost; growth is expected to stay double‑digit as inland‑waterway projects mature.
Primary BTKM (overall freight)	7‑9 %	7‑9 %	6‑8 %	6‑8 %	Mirrors the pace of the Indian economy; reflects balanced demand from manufacturing, agriculture and consumer sectors.
3PL services (revenue)	12‑15 % (industry‑wide)	14‑16 %	16‑18 %	9‑11 %	Adoption of integrated logistics, digital platforms, and e‑commerce fulfilment drives faster revenue expansion than pure transport volumes.
4PL/5PL (digital freight platforms)	5‑7 % (nascent)	8‑10 %	12‑14 %	13‑15 %	Early‑stage but high‑growth segment; AI‑driven route optimisation and marketplace models are attracting large captive users.
Organised warehousing (sq ft.)	3‑4 %	5‑7 %	10‑12 %	11‑16 %	Post‑COVID normalisation and 3PL‑driven demand for Grade‑A/B space are accelerating absorption, especially in Tier‑1/2 cities.
Air freight (value‑share)	11‑13 % of total freight value	9‑11 %	12‑14 %	8‑10 %	Air remains the premium, high‑value mode; growth is linked to pharma, electronics and quick‑commerce, but cost differentials keep its share modest.

Source: RHP

• Rail’s CAGR (10‑12 %) outpaces road in the medium term, signalling a structural shift toward multimodal freight as DFCs become fully operational.
• Coastal shipping is poised for a resurgence(10‑12 % growth in FY 24‑25) as Sagarmala‑linked ports and inland waterways reduce reliance on road for bulk cargoes.
• Technology‑enabled logistics (3PL/4PL/5PL) will be the fastest‑growing revenue driver, with double‑digit CAGR through 2029, reflecting the industry’s move from commodity‑based transport to value‑added supply‑chain solutions.
• Organised warehousing is set to expand at 11‑16 % CAGR, driven by e‑commerce fulfilment, cold‑chain needs and the consolidation of fragmented storage assets.

Om Freight Forwarders Limited – Company Overview

Om Freight Forwarders Limited, founded on 16 June 1995, is a Mumbai‑based integrated 3PL provider offering freight forwarding, customs clearance, multimodal transport, warehousing, and project‑cargo services. Promoted by Rahul Jagannath Joshi, Jitendra Maganlal Joshi, Harmesh Rahul Joshi, and Kamesh Rahul Joshi, it has ~1,700 employees (FY 2025). The company holds strategic memberships and certifications, including FIATA, IATA, and ISO 9001/14001/45001. It is promoter-driven with no external institutional investors.

Core Services

• International Freight Forwarding – Air, sea, and multimodal shipments.
• Customs House Agency (CHA) – Licensed customs broker (License No. 11‑732) and Authorised Economic Operator (AEO).
• Vessel Agency & Port Services – Handling import/export clearances at major Indian ports (Mumbai, JNPT, Chennai, etc.).
• Domestic Transportation – Road and rail haulage (registered under Multimodal Transport Operators Rules 2022).
• Warehousing & Bonded Storage – Public bonded warehouse (10,662 sq ft, Uran, Raigad) and private warehouse network.
• Project Cargo & ODC Handling – Specialised planning for heavy-lift, over-dimensional, and high-value cargo.
• Value‑Added Services – Insurance, documentation, clearance, and end-to-end supply-chain visibility (IATA accredited, FIATA member).

Competitive Positioning

Strengths

• Long-standing market presence – 28+ years of experience with deep customs expertise.
• Integrated end-to-end services – Single-window logistics covering freight, customs, warehousing, and project cargo.
• Operational footprint – Presence at all major Indian ports with inland hubs; capable of handling bulk and high-value cargo.

 

Weaknesses

• Customer concentration – Top 10 customers form a large revenue share; the single largest customer is >11% in FY 2025.
• Regulatory & litigation exposure – Ongoing customs penalties, dock-safety probes, and pending CESTAT matters may impact cash flows.
• Margin pressure – EBITDA margin improving but still below larger peers (e.g., AVG Logistics ~17%).
• Technology adoption gap – Slower uptake of AI, IoT, and blockchain could reduce competitiveness.
• Fuel & freight volatility – Heavy dependence on road and diesel makes costs sensitive to fuel and freight-rate swings.

Financial Profile

Robust Revenue Growth: Om Freight Forwarders reported revenue of INR4,711.38 mn in FY 2023, INR4,105.01 mn in FY 2024 (‑12.87% YoY), and INR4,901.37 mn in FY 2025 (+19.40% YoY). The decline in FY 2024 was primarily due to adverse geopolitical developments, including the Russia-Ukraine conflict, and a slowdown in the logistics industry. Policy support, pan-India network expansion, and international reach to over 800 destinations continue to drive growth momentum.

Better Profitability: PAT margin rebounded from 2.5% in FY 2024 to 4.5% in FY 2025, with EBITDA margin improving to 7.7% from 2.9%. RoCE rose to 15.8%, and RoE recovered to 13.5%, above peer averages. Margin gains were driven by cyclical recovery, better asset utilisation, cost control, and higher-margin services like project cargo and bonded-warehouse handling.

Table: Peers Comparison

Name of Company	Revenue from operations (INR million)	Closing price as of September 19, 2025	P/E	EPS (Basic) (INR)	EPS (Diluted) (INR)	NAV per equity share (INR)
Om Freight Forwarders Limited*	4,901.37	135*	19.6	6.90	6.90	54.44
Tiger Logistics (India) Limited	5,363.05	50.48	19.72	2.56	2.56	13.08
Total Transport Systems Limited	6,652.45	73.80	13.32	5.54	5.54	51.76
AVG Logistics Limited	5,515.18	242.43	16.15	15.01	15.01	163.76
Patel Integrated Logistics Limited	3,426.91	15.06	13.33	1.13	1.13	17.48

Source: RHP; * – upper end of price band

Table: KPI Comparison

Company	Particulars (Units)	FY 2023	FY 2024	FY 2025	CAGR
Om Freight Forwarders Limited^	Revenue from operations (INR mn)	4,711.38	4,105.01	4,901.37	1%
	EBITDA (INR mn)	333.31	119.60	377.14	6%
	EBITDA Margin (%)	7.07	2.91	7.69	–
	PAT (INR mn)	271.58	103.45	219.90	-10.00%
	PAT Margin (%)	5.76	2.52	4.49	–
	Return on Equity (RoE) (%)	21.63	7.11	13.53	–
	Return on Capital Employed (%)	35.46	9.72	15.80	–
	Net Fixed Asset Turnover Ratio (in times)	16.58	5.67	5.00	–
	Net Capital Turnover Ratio (in times)	5.44	5.93	7.23	–
	Debt to Equity Ratio (in times)	0.07	0.17	0.17	–
	Debt Service Coverage Ratio (in times)	(21.35)	2.22	8.13	–
	Current Ratio	1.56	1.70	1.57	–
Tiger Logistics (India) Limited*	Revenue from operations (INR mn)	4,333.48	2,402.59	5,363.05	13%
	EBITDA (INR mn)	259.23	150.23	309.15	9%
	EBITDA Margin (%)	5.98	6.25	5.76	–
	PAT (INR mn)	232.12	129.64	270.08	6%
	PAT Margin (%)	5.36	5.40	5.04	–
	Return on Equity (RoE) (%)	26.98	12.44	21.68	–
	Return on Capital Employed (%)	32.77	14.80	22.61	–
	Net Fixed Asset Turnover Ratio (in times)	57.69	27.31	61.25	–
	Net Capital Turnover Ratio (in times)	5.05	2.64	4.45	–
	Debt to Equity Ratio (in times)	0.00	0.11	0.25	–
	Debt Service Coverage Ratio (in times)	54.97	1.66	1.09	–
	Current Ratio	5.50	4.22	3.29	–
Total Transport Systems Limited*	Revenue from operations (INR mn)	5,902.72	4,881.02	6,652.45	6%
	EBITDA (INR mn)	146.20	70.75	135.00	0
	EBITDA Margin (%)	2.48	1.45	2.03	–
	PAT (INR mn)	52.23	12.55	88.14	18%
	PAT Margin (%)	0.88	0.26	1.32	–
	Return on Equity (RoE) (%)	8.06	1.66	11.05	–
	Return on Capital Employed (%)	14.16	6.52	11.33	–
	Net Fixed Asset Turnover Ratio (in times)	47.11	26.85	42.03	–
	Net Capital Turnover Ratio (in times)	9.47	10.44	14.01	–
	Debt to Equity Ratio (in times)	0.22	0.44	0.46	–
	Debt Service Coverage Ratio (in times)	0.78	0.30	0.44	–
	Current Ratio	2.50	1.64	1.60	–
AVG Logistics Limited*	Revenue from operations (INR mn)	4,271.08	4,798.89	5,515.18	13%
	EBITDA (INR mn)	749.53	976.80	955.70	12%
	EBITDA Margin (%)	17.55	20.35	17.33	–
	PAT (INR mn)	83.44	319.21	213.27	44%
	PAT Margin (%)	1.95	6.65	3.87	–
	Return on Equity (RoE) (%)	9.57	22.04	9.55	–
	Return on Capital Employed (%)	11.88	16.84	11.88	–
	Net Fixed Asset Turnover Ratio (in times)	4.89	4.95	5.08	–
	Net Capital Turnover Ratio (in times)	19.33	5.83	5.28	–
	Debt to Equity Ratio (in times)	1.00	1.10	0.89	–
	Debt Service Coverage Ratio (in times)	0.64	0.94	0.71	–
	Current Ratio	1.16	1.72	1.73	–
Patel Integrated Logistics Limited*	Revenue from operations (INR mn)	2,782.78	2,905.49	3,426.91	11%
	EBITDA (INR mn)	103.27	90.98	87.79	-5%
	EBITDA Margin (%)	3.71	3.13	2.56	–
	PAT (INR mn)	48.97	55.38	76.00	25%
	PAT Margin (%)	1.76	1.91	2.22	–
	Return on Equity (RoE) (%)	4.17	4.67	6.31	–
	Return on Capital Employed (%)	6.35	5.70	6.49	–
	Net Fixed Asset Turnover Ratio (in times)	5.56	8.23	10.02	–
	Net Capital Turnover Ratio (in times)	2.36	2.43	2.82	–
	Debt to Equity Ratio (in times)	0.25	0.20	0.11	–
	Debt Service Coverage Ratio (in times)	0.62	0.61	0.83	–
	Current Ratio	3.13	2.35	2.85	–

Source: RHP