Accuracy Shipping subsidiary A.R.S. Terminals has secured a Letter of Intent from the Central Board of Indirect Taxes and Customs to develop a Container Freight Station at Kandla, Gujarat. The project requires a ₹25 crore capital expenditure and targets annual revenue of ₹175-200 crore at peak operations.

Key details of the CFS development

The Letter of Intent, issued by the Central Board of Indirect Taxes and Customs (CBIC) on September 10, 2026, authorises A.R.S. Terminals (India) Private Limited to build and operate the facility at Plot No. 7, Sector 10B, Kandla. Accuracy Shipping holds a 99.80% stake in the subsidiary. The company plans to fund the estimated ₹25 crore capital expenditure through a combination of debt and internal accruals.

The facility is expected to be operationalised within one year from the date of the Letter of Intent. It will feature a planned storage capacity of approximately 5,000 containers per month, translating to 80,000 containers annually. The centre will cater to both import and export cargo handling requirements in the region.

Revenue outlook for the facility

The following table summarises the key parameters of the proposed CFS project as disclosed:

At full utilisation, the CFS is projected to generate revenue between ₹175 crore and ₹200 crore. Management indicated that EBITDA margins are expected to grow to double-digit levels as operations scale up and operating leverage improves.

Strategic significance for Accuracy Shipping

The development marks a significant step for Accuracy Shipping as it expands its logistics infrastructure through A.R.S. Terminals. Vinay Tripathi, Chairman and Managing Director, stated that the expansion strengthens integrated logistics capabilities and enables service to a wider customer base. The Kandla CFS is expected to serve as a key node in the company's freight and customs handling operations, supporting sustainable long-term value creation.

Accuracy Shipping Limited reported a sharp improvement in profitability for the quarter ended June 30, 2026, with EBITDA rising 30.3% year-on-year to ₹6.7 crore. This growth occurred despite a 12.4% decline in revenue, which stood at ₹140.8 crore compared to ₹160.7 crore in Q1FY26.

The margin expansion signals a strategic shift towards higher-value operations within its logistics portfolio. Gross profit increased by 21.4% to ₹16.2 crore, lifting the gross margin by 321 basis points to 11.5%. Consequently, the EBITDA margin expanded by 156 basis points to 4.8% from 3.2% in the corresponding quarter last year.

Segmental Performance

The revenue mix continued to diversify, reducing reliance on traditional clearing and forwarding services. Logistics services contributed 71% of total revenue, while the sale of heavy commercial vehicles (HCV) emerged as a significant growth driver, accounting for 28% of the top line. Petroleum and petroleum products made up the remaining 2%.

In terms of profitability contribution, logistics services dominated, generating 91% of the EBITDA. The commercial vehicles segment contributed 9%, while the petroleum segment’s contribution became negligible.

What the Numbers Show

A notable divergence exists between top-line performance and operating efficiency. While revenue contracted by nearly 13%, operative expenses fell more sharply, dropping from ₹100.9 crore in Q1FY26 to ₹83.3 crore in Q1FY27. This cost discipline, combined with a higher proportion of revenue coming from the HCV dealership vertical—which typically carries different margin dynamics than pure logistics—drove the substantial expansion in gross and EBITDA margins. However, finance costs rose to ₹3.5 crore from ₹2.9 crore, pressuring the bottom line and resulting in a slight 6.2% decline in net profit after tax.

Operational Highlights

The company handled 21,565 containers in Q1FY27, maintaining its operational scale with a fleet of 417 trucks. Average realization per container improved slightly to ₹51,491 from ₹49,368 in Q1FY26. The management highlighted strengthened long-term rate contracts with major carriers and new train chartering movements as key initiatives supporting future resilience.