CJ Darcl Logistics, a company preparing for an Initial Public Offering (IPO), expects to maintain its revenue growth momentum, which has averaged around 10% CAGR in recent years, stated Nikhil Agarwal, President of CJ Darcl Logistics.
The logistics firm, supported by South Korea's CJ Logistics Corporation, reported consolidated revenue of ₹5,680.19 crore in the fiscal year 2026 (FY26), marking a 10% increase year-over-year (YoY). Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for this year reached ₹273.24 crore, showing a slight rise of 1.88% YoY. However, the company's net profit in FY26 decreased by 6.87% YoY to ₹86.72 crore, according to the annual report for FY26.
Agarwal attributed the expected continuation of this growth momentum to production growth, exports, industrial demand in India, and government initiatives aimed at stimulating industrial activity.
Expansion of Key Business Areas
The company is currently actively developing three main areas: a technologically equipped marketplace for small fleets, alternative fuels and electric vehicles (EVs), and warehousing and distribution.
CJ Darcl is preparing to launch a platform for small transporters that will give drivers access to technology and numerous products through a single solution, allowing them to benefit from the company's purchasing power. Agarwal noted that 'we believe this segment of drivers needs much better access to technology and numerous products through a single solution.'
The company serves about 8-10 lakh drivers, with approximately 2-2.5 lakh new trucks joining annually. The marketplace will also offer accounting solutions, including a digital ledger, to help drivers understand costs related to downtime, commissions, and other factors.
The second area of focus is sustainability, where CJ Darcl is working on alternative fuels and EVs. The company is discussing scenarios with clients for using electric trucks that can achieve high utilization. Agarwal emphasized that currently, an electric vehicle costs about three times more than a 55-ton diesel truck, which is the largest truck category in India. He added: 'The only way to make an electric truck financially viable is to maximize asset utilization and ensure high loading.'
The company plans to invest in EVs where client contracts make the proposition financially sound, and it is also working on developing alternative fuel solutions.
The third area is warehousing and distribution. As of FY26, CJ Darcl manages warehouse spaces covering approximately 2.78 million square feet across India. This business has shown annual growth of 70-80% over the last two to three years. Furthermore, the company has included e-commerce and express delivery warehousing and distribution in its portfolio, already attracting some clients.
In FY25, CJ Darcl transported 22.42 million tons of cargo. Road logistics remains the primary focus, but the company is also involved in rail and coastal logistics. It has been participating in multimodal container transport by rail for nearly two decades and began operating in coastal logistics about 10 years ago.
Current Market Challenges and Outlook
According to Agarwal, demand for metals and minerals has slowed down, while the FMCG sector remained relatively stable. The company also noted some reduction in business volumes compared to the same period last year with certain clients. He suggested several reasons for this, stating: 'Production and sales of our clients were much higher last year.'
Rising crude oil prices have led to increased diesel fuel prices, impacting logistics costs and freight rates. For CJ Darcl's contract logistics business, diesel fuel costs are typically passed on to clients. Nevertheless, Agarwal warned that higher sea freight and shipping rates could ultimately affect industrial demand.
Regarding freight rates, the impact of higher diesel prices is already noticeable, especially on long-haul routes. At the same time, the growth in commercial vehicle sales may increase supply and potentially lead to some correction in freight rates, which, he said, usually happens within one to two quarters.
CJ Darcl is also exploring opportunities for inorganic growth, particularly in new sectors such as warehousing. Acquisitions could attract additional clients or expand logistical reach, creating opportunities to add automotive and multimodal transportation services.
Concerning the planned IPO, Agarwal reported that the Draft Red Herring Prospectus (DRHP) has been filed and approved. However, implementation depends on market conditions and the work of the banking advisors. He clarified that CJ Logistics will not be a selling shareholder.
CJ Logistics supports Indian businesses in areas such as warehousing, technology, artificial intelligence, and driver marketplaces. Additionally, thanks to its presence in 38 countries, CJ Logistics helps attract global clients for CJ Darcl, Agarwal added. He also noted that infrastructure development, including port and railway terminal expansions, as well as initiatives like Gati Shakti, have contributed to improving India's logistics ecosystem. Broader use of technology and data can enhance efficiency, while the fragmentation of various logistics services continues to increase costs.