Tejas Cargo revenue climbs 25% as margins face hiring and toll pressure
Revenue hit ₹666.5 crore in FY26, but rising market hiring costs and tolls squeezed EBITDA margins to 18.2%.
What's new
- Revenue grew 25.2% to ₹666.5 crore in FY26.
- EBITDA margin slipped to 18.2% as market hiring costs reached 21% of revenue.
- Management secured a ₹35-40 crore bauxite mining contract with CMDC.
Why this matters
Tejas Cargo is trading margin for scale as it expands into new verticals like mining and coal. The company's ability to recover margins depends on shifting its business mix away from the high-cost market hiring that currently accounts for over a fifth of its revenue.
What we're watching
- Whether the shift to coal and fly ash improves margins in FY27.
- The pace of EV fleet deployment with Amazon and Dalmia Cements.
- Management's ability to keep revenue growth above 20%.
The full read
Tejas Cargo India grew revenue 25.2% to ₹666.5 crore in FY26, but the expansion came at a cost. EBITDA margins slipped to 18.2% as the company relied on market hiring for 21% of its revenue. Management pointed to toll and insurance inflation as the primary headwinds, rather than fuel costs.
It is a difficult trade-off.
To improve margins, the company is diversifying into new verticals like coal, fly ash, and mining, which now account for 25.5% of total revenue. A new ₹35-40 crore bauxite mining contract with CMDC and early-stage EV deployments with Amazon and Dalmia Cements are the latest additions to this strategy. Executives are guiding for revenue growth above 20% in FY27, though the company owns 1,339 vehicles, the reliance on external hiring remains the central friction point for profitability. The next test is whether the shift toward higher-margin segments can finally offset these rising operational costs.
Questions answered
- What caused the decline in EBITDA margins?
- Margins slipped to 18.2% primarily due to higher market hiring costs, which now represent 21% of revenue, alongside rising toll and insurance expenses.
- What are the new growth drivers for FY27?
- Management is targeting revenue growth above 20% by expanding into new verticals including coal, fly ash, and mining.
- Does the company have any new contracts?
- Yes, Tejas Cargo signed a five-year bauxite mining contract with CMDC valued at ₹35-40 crore.
- How large is the company's current fleet?
- The company owns 1,339 vehicles.
An independent reading of the company's own disclosure — the primary filing above is the final word.