AVG Logistics net doubles but one-time gain masks core weakness
Q4 standalone profit doubled to ₹10.64 cr, but a ₹21.19 cr lease termination gain accounted for the entire increase. Full-year revenue flat at ₹556 cr; ₹52.93 cr rights issue fully subscribed.
— 4 earlier stories on AVG Logistics Ltd. →What's new
- Q4 standalone net profit doubled to ₹10.64 cr from ₹5.26 cr a year ago.
- Profit includes a one-time gain of ₹21.19 cr from termination of a lease with Indian Railways.
- Full-year revenue flat at ₹556.3 cr; rights issue of ₹52.93 cr fully subscribed post-period.
Why this matters
The dramatic profit jump is entirely from a non-recurring item. Without it, operating profitability remains under pressure from higher finance costs and depreciation. The flat revenue and lack of fresh guidance mean the investment thesis is unchanged.
What we're watching
- How the Haldiram contract (₹35 cr/year) flows through in FY27 results.
- Deployment of ₹52.93 cr rights issue proceeds.
- Any improvement in core operating margins.
The full read
AVG Logistics delivered a headline-grabbing Q4: net profit doubled to ₹10.64 crore. But that's the whole story. The ₹21.19 crore one-time gain from terminating a railways lease accounted for the entire increase; without it, the core business remains under pressure from higher finance costs and depreciation, which is why full-year revenue nudged up only slightly to ₹556.3 crore from ₹551.5 crore. The ₹52.93 crore rights issue was fully subscribed and shares were allotted after the quarter, adding cash but doing nothing to fix margins overnight. Not enough. The delayed FY26 results are finally out, the audit is clean, and the rights issue is done, but what hasn't changed is that AVG remains a nano-cap logistics player that still needs to show it can grow profits from operations, not one-offs.
Questions answered
- What drove the sharp Q4 net profit increase?
- A one-time gain of ₹21.19 crore from terminating a lease with Indian Railways on the Yesvantpur–Patel Nagar route. Excluding this, operating profitability was under pressure.
- How much was the rights issue and is it done?
- The ₹52.93 crore rights issue was fully subscribed and shares were allotted after the reporting period (post-March 2026).
- Is AVG Logistics' core business growing?
- Not significantly. Consolidated full-year revenue was ₹556.3 crore, only marginally up from ₹551.5 crore in FY25. The core operation appears flat.
- What did the auditor say?
- Auditor MSKA & Associates issued an unmodified opinion on the standalone and consolidated financial statements.
- What is the company's market cap and valuation?
- AVG Logistics has a market capitalisation of about ₹336 crore, with a trailing P/E of 16.2 and ROE of 8.7%.
AVG Logistics Ltd.
Latest quarter · Mar 2026
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All notes on AVG →- 23 Jun 2026 · 10:28 PM IST AVG Logistics net doubles but one-time gain masks core weakness
- 9d ago AVG Logistics Q4 profit doubles, but press release is a rehash
- 15d ago AVG Logistics delays FY26 results; audit still incomplete
- 18d ago Sixth Sense Ventures takes 18.36% stake in AVG Logistics
- 21d ago AVG Logistics lands ₹35 cr/year Haldiram contract