VRL Logistics has filed its Business Responsibility and Sustainability Report for the financial year ended March 31, 2026. The filing provides a comprehensive overview of the company's environmental, social, and governance (ESG) performance, highlighting its operational footprint and workforce metrics. The disclosures are made on a standalone basis.

Environmental Performance

The company identified energy efficiency and greenhouse gas (GHG) emissions as material issues, characterizing them as an opportunity and a risk respectively. VRL Logistics reported a total energy consumption of 3,941,611.13 GJ in FY26, derived entirely from non-renewable sources. This comprised 46,670.40 GJ from electricity and 3,894,940.73 GJ from fuel consumption. Consequently, the total Scope 1 and Scope 2 emissions were recorded at 260,247.8 TCO2e.

Water withdrawal for the year stood at 49,750 kilolitres, with the company noting that water waste from vehicle cleaning is recycled for gardening. The report also detailed waste generation, which totaled 662,728.31 metric tonnes. This included 30.74 metric tonnes of battery waste and 111.69 metric tonnes of other hazardous waste. The company recycled 30.74 metric tonnes of battery waste and 2,793.85 metric tonnes of other non-hazardous waste.

Workforce and Social Metrics

VRL Logistics reported a workforce of 21,511 permanent employees, comprising 21,208 male and 303 female employees. The company stated it does not employ any workers on its payroll. The median remuneration for the Board of Directors was ₹3,60,00,000, while Key Managerial Personnel received a median of ₹1,80,94,200. For other employees, the median remuneration was ₹2,40,000 for males and ₹3,00,120 for females.

The company incurred costs on wellbeing measures equivalent to 18.24% of its total revenue. Regarding safety, the Lost Time Injury Frequency Rate (LTIFR) for employees was 1.04 per million person hours worked. The report recorded 19 employee fatalities during the financial year, compared to 20 in the previous year.

Grievance Redressal and Governance

The company disclosed that it received 345,328 complaints from customers during FY26, with 954 cases pending resolution at the end of the year. This figure was significantly higher than the previous year's 90,383 complaints, a change the company attributed to an expanded reporting scope and revised classification criteria. Employee grievances totaled 109, with none pending resolution.

Governance oversight is managed directly by the Board, with the Audit Committee undertaking periodic reviews of sustainability-related issues. The company confirmed that it has not established a separate committee for sustainability decision-making.

VRL Logistics Limited reported a net profit of ₹23,683 lakh for the financial year ended March 31, 2026, an increase from ₹18,292 lakh in the previous year. Revenue from operations rose to ₹3,22,111 lakh from ₹3,16,095 lakh in FY25, while total income stood at ₹3,24,478 lakh. The company’s EBITDA improved to ₹67,389 lakh from ₹59,841 lakh in the prior year.

Financial Performance

The growth in profitability was driven by margin expansion resulting from the discontinuation of low-margin business and improved freight realizations. Earnings before interest, depreciation, tax, and amortization (EBITDA) margins improved to 20.77% from 18.79% in FY25. The net profit ratio increased to 7.35% from 5.79% in the previous year. Finance costs for the year were ₹9,498 lakh, compared to ₹9,483 lakh in FY25.

Operational Efficiency

The company reported a return on equity of 21.27% for FY26, up from 18.02% in the previous year. The return on capital employed improved to 24.56% from 21.40%. The debt-equity ratio stood at 0.40 as of March 31, 2026, compared to 0.41 in the prior year. VRL Logistics managed its costs effectively, with fuel cost as a percentage of revenue decreasing to 24.91% from 27.32% in FY25.

Corporate Governance and Compliance

The Board of Directors met five times during the financial year. The company confirmed compliance with the Secretarial Standards issued by the Institute of Company Secretaries of India (ICSI) and all applicable SEBI regulations. There were no instances of non-compliance or penalties imposed by regulatory authorities during the year. The statutory auditors identified revenue recognition as a key audit matter due to the volume and decentralized nature of transactions.