AVG Logistics Limited has announced a significant corporate restructuring move with its board of directors approving an increase in authorized share capital during a meeting held on March 02, 2026. The decision marks an important milestone in the company's capital structure enhancement strategy.

Board Meeting Outcomes

The board meeting, which commenced at 03:30 P.M. and concluded at 04:30 P.M. on March 02, 2026, addressed several key corporate governance matters. The primary focus was on increasing the company's financial capacity through authorized share capital expansion.

Capital Structure Modification

The board approved the increase in authorized share capital along with corresponding alterations to the Capital Clause of the company's Memorandum of Association (MOA). The amended capital structure will significantly enhance the company's financial flexibility.

Postal Ballot Process

The board has initiated a postal ballot process to seek shareholder approval for the authorized share capital increase. This democratic approach ensures all shareholders can participate in this crucial corporate decision.

Key Appointments and Procedures

The company has made strategic appointments to ensure the postal ballot process maintains transparency and regulatory compliance:

• Scrutinizer Appointment: M/s Chauhan Pradeep and Associates, Company Secretaries
• Membership Number: 68078
• Role: Scrutinize votes cast through postal ballot
• Process: Notice of Postal Ballot approved by board

Regulatory Compliance

The announcement was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015. The company has fulfilled its disclosure obligations by informing both BSE Limited and National Stock Exchange of India Limited about the board meeting outcomes.

Documentation and Amendments

The capital structure changes require formal amendments to the company's constitutional documents. The Memorandum of Association will be updated to reflect the new authorized share capital, while no changes are required to the Articles of Association for this particular modification.

This authorized share capital increase positions AVG Logistics for potential future growth initiatives and provides the company with enhanced financial flexibility to pursue strategic opportunities in the logistics sector.

AVG Logistics Limited demonstrated resilient operational performance during Q3 FY26, maintaining stable financial metrics while advancing its strategic initiatives in green logistics and multi-modal transportation. The company's earnings call highlighted significant developments in sustainable transportation and infrastructure expansion.

Financial Performance Overview

The company delivered consistent financial results across key metrics for the quarter and nine-month period ended December 31, 2025.

CFO Rajesh Rohilla emphasized that these numbers reflect the resilience of the company's integrated logistics model and continued focus on execution excellence across transportation, warehousing, and cold chain segments.

Strategic Green Logistics Initiatives

AVG Logistics achieved several milestone developments in sustainable transportation during Q3 FY26. The company introduced and expanded its LNG-powered fleet, reinforcing its commitment toward green and cost-efficient logistics solutions.

A landmark achievement was becoming the first company in India to commercially deploy 55-ton electric trucks from Tata Motors at Tata Steel's premises for intra-plant and short-haul deliveries. This initiative advances the company's green logistics strategy while supporting Tata Steel's carbon reduction goals.

Infrastructure and Contract Wins

The company secured a significant 6-year lease contract for operating a Parcel Cargo Express Train (PCET) from Indian Railways (Northeast Frontier) connecting Agartala/Guwahati to Delhi/Ludhiana. This contract strengthens AVG Logistics' rail transportation capabilities and multi-modal service offerings.

Additionally, the company entered into a long-term contract with a renowned FMCG company for supply chain management services without any capex requirements, maintaining decent margins.

Fleet and Operational Capacity

Managing Director Sanjay Gupta outlined the company's current operational scale and expansion plans:

The company maintains high fleet utilization rates with only 2-3% of vehicles typically under maintenance or repair at any given time.

Business Segment Performance

AVG Logistics operates across multiple logistics segments with varying profitability profiles. The cold chain segment generated approximately INR80 crores in revenue during the nine-month period, representing a significant portion of overall operations.

The company's warehousing operations span both owned and leased models, with facilities located in Goa, Mysore, Agartala, Ghaziabad, and Panipat. Warehousing margins range between 25-30%, providing stable returns on invested capital.

Market Outlook and Growth Strategy

Management characterized FY26 as a consolidation year for the logistics industry, affected by various market factors. The company invested approximately INR65 crores in capex during the current financial year, expecting benefits to materialize in the subsequent year.

Sanjay Gupta highlighted the favorable policy environment, noting the Government of India's proposed capital expenditure outlay of approximately INR12.2 lakh crore in the Union Budget FY 2026-27. This infrastructure-led growth strategy is expected to improve transit times, enhance asset utilization, and reduce overall logistics costs.

The company targets 15-20% year-on-year growth through network expansion, technology integration, fleet modernization, and strategic partnerships while maintaining its asset-light approach and integrated service offerings.