Snowman Logistics has released its comprehensive investor presentation for the quarter and nine months ended December 31, 2025, showcasing strong operational performance despite facing regulatory challenges. The cold chain logistics leader reported revenue of ₹143.7 crores for Q3FY26 compared to ₹131.8 crores in the corresponding quarter of the previous year, registering a growth of 9.0%.

Q3FY26 Financial Performance

The company's quarterly results demonstrate solid operational improvements with revenue growth accompanied by enhanced EBITDA performance. The total income for the quarter reached ₹145.0 crores, marking an 8.3% increase from ₹133.9 crores in Q3FY25.

Segment-wise Performance Analysis

Snowman Logistics operates through three key business segments, with warehousing services leading the growth trajectory during the quarter.

Nine-Month Performance Highlights

For the nine months ended December 31, 2025, the company maintained its growth momentum with total income reaching ₹464.7 crores compared to ₹419.4 crores in the corresponding period of the previous year, representing a 10.8% increase.

Management Commentary and Strategic Outlook

Padamdeep Singh Handa, CEO & Whole-time Director, expressed satisfaction with the continued positive growth trajectory. "We are pleased to report a continued positive growth into Q3FY26, with revenue for Q3 standing at ₹143.7 crore, reflecting a 9% year-on-year growth. This performance is a testament to the strategic investments made in expanding our cold chain infrastructure and strengthening our integrated logistics solutions," he stated.

The company has expanded its capacity by adding a temperature-controlled facility in Jaipur with 1,440 pallet positions, bringing the total capacity to 1,55,099 pallets across 45 warehouses in 21 cities.

Impact of Labour Code Implementation

The company reported exceptional items of ₹2.8 crores during Q3FY26, primarily related to the impact of newly notified Labour Codes by the Government of India. These codes consolidate 29 existing labour laws and have created incremental compliance costs, affecting the bottom line performance.

Corporate Actions and Dividend Declaration

Despite the quarterly loss, the Board of Directors declared the first interim dividend for FY2025-26 at ₹0.50 per equity share, representing 5.00% of the face value. The record date for dividend eligibility has been fixed as February 12, 2026.

Snowman Logistics and its parent company Gateway Distriparks Limited (GDL) have reported mixed results for the second quarter, with rail operations showing growth while facing challenges in the Container Freight Station (CFS) and cold chain segments.

Rail Operations Show Resilience

GDL reported an EBITDA per TEU of INR 9,300.00 for its rail operations in Q2. The company has seen an increase in its double-stack percentage from 39% in the previous quarter to 41% in the current quarter, indicating improved operational efficiency.

Samvid Gupta, Joint Managing Director of GDL, expressed optimism about future growth: "We're expecting double-digit growth closer to maybe 10% to 15% from our existing locations over the next 2 to 3 years, not counting Ankleshwar and domestic volumes or any other new location."

Market Share and Expansion

GDL has maintained its strong position in key markets:

The company has also commenced domestic services from Ankleshwar, targeting 1,000+ TEUs monthly within two years. This move into the domestic market is part of GDL's strategy to diversify its operations and mitigate risks associated with international trade fluctuations.

CFS Segment Faces Temporary Setback

The CFS segment experienced a dip in performance, with EBITDA per TEU dropping to INR 1,000.00. Samvid Gupta attributed this to "some one-offs, which included legal costs and repair and maintenance. There was also a dip in exports because of the US tariff situation." However, he expressed confidence that this would improve in the coming quarters, with a target range of INR 1,300.00 to INR 1,400.00 per TEU.

Snowman Logistics: Challenges and Strategies

Snowman Logistics, GDL's cold chain subsidiary, faced challenges in both its transportation and warehousing segments:

Transportation Segment:

• PBT margins dropped to breakeven levels
• The company is realigning its business model and removing low-margin operations
• Management expects to restore margins to high single-digit PBT levels

Warehousing Segment:

• Revenue maintained at INR 60.00 crores
• PBT margins declined from 12% to 3% due to:
  1. Reduced capacity utilization
  2. Weather-related power cuts increasing diesel consumption
  3. Stress in seafood warehouses

Padamdeep Singh Handa, CEO of Snowman Logistics, stated, "We are seeing positive traction from December onwards till the year-end, we are expecting good volumes."

Future Outlook and Strategies

1. Expansion Plans: Snowman Logistics plans to invest INR 100.00-150.00 crores annually, primarily for developing two to three owned warehouses.

2. Fleet Optimization: The company is moving out aging fleet and replacing it with new vehicles, with a focus on leasing and some capex on EVs and CNG vehicles.

3. 5PL Segment Growth: Snowman is working on securing 2-3 major accounts in the 5PL space, with at least one expected to close.

4. Trade Agreements: GDL expects positive impacts from potential trade deals with the UK, EU, US, and other countries, which could boost container volumes.

5. Domestic Market Entry: GDL's move into domestic services from Ankleshwar represents a strategic shift to balance its portfolio and reduce dependence on international trade.

As both companies navigate through temporary challenges, they remain focused on long-term growth strategies and market expansion. The management's outlook suggests a cautious optimism for the coming quarters, with expectations of improved performance across various segments.