Exim Routes sets Rs 300 cr revenue target for FY27 after 72% growth in its first listed year
Core trading margin rose 300bps to 22.4%, but reported EBITDA margin compressed to 6.8% on freight headwinds.
What's new
- FY26 revenue hit ₹207 cr, up 72% YoY, with volume expansion driving ~90% of the growth.
- Core trading margin rose to 22.4% from 19.4%, while reported EBITDA margin fell to 6.8% on European sourcing costs.
- ERIS platform claims to cut deal matching from 2-3 days to minutes, visualizing 1 million tons of inventory.
- CFO Anshul Bansal guided for 30-50% revenue growth in FY27, targeting ₹300 cr.
Themes from the call
Demand
Volume expansion drove ~90% of FY26's 72% top-line growth, with sourcing now at 150,000 MT annually from 25+ countries.
Margins
Core trading margin rose to 22.4%, but reported EBITDA margin fell to 6.8% due to higher European sourcing costs and elevated freight.
Capital allocation
The company is using invoice financing to convert its ₹59 cr receivables book into working capital.
Guidance watch
- CFO Anshul Bansal set an explicit FY27 target of ₹300 cr in revenue, representing 30-50% growth.
- The long-term vision is to reach ₹1,000 cr in revenue by FY31 and capture 8-10% of the global recycled-paper market.
Risk flags
- Customer concentration is high: the top 5 customers represent ~50% of revenue, with the largest at 20%.
- The ERIS platform's value proposition is still in its internal optimization phase (Phase 1).
- Geopolitical disruptions and elevated global logistics costs are near-term headwinds cited by management.
Key quotes
-
"For FY27, our business target is 30.0%-50.0% revenue growth... aiming to hit a goal of Rs 300 crores in revenue."
— Anshul Bansal, CFO -
"Core trading margin expanded 300bps to 22.4%... from deliberate European sourcing mix shift and elevated global oil prices impacting freight."
— Exim Routes management
The brief
Exim Routes' first full-year results as a listed company show a business scaling fast on the top line. Revenue grew 72% to ₹207 cr in FY26, driven almost entirely by volume expansion in its core recycled-paper trading. The company is now sourcing 150,000 MT annually from over 25 countries. The core trading margin rose to 22.4%. The reported EBITDA margin of 6.8% tells a different story, however, and one investors should watch closely. It compressed despite the rise in the core business margin, a result of a deliberate shift toward higher-cost European sourcing and a spike in global freight rates. This creates a gap between the company's controllable trading margin and its actual bottom-line profitability. That gap is funded, for now, by a working capital build. Trade receivables stand at ₹59 cr, which the company says is a deliberate growth investment, not a liquidity problem. It has brought in new invoice financing to help convert that receivables book into cash. The biggest question mark is the ERIS platform. Management claims it has cut deal-matching time from days to minutes and now visualizes inventory worth ₹300 cr annually. But the platform is still in its first phase, focused on internal optimization, and its monetization path is years away. The FY27 guidance for ₹300 cr in revenue is bold, and the long-term ₹1,000 cr vision by FY31 is even bolder. Management will need to prove the platform's value, manage customer concentration risks, and work through freight headwinds to hit those targets.
The core trading machine works, but the platform story is still a promise on a PowerPoint.