Glottis Limited reported challenging third quarter results for FY26, with revenue from operations declining to INR 1,439 million amid a soft global logistics environment. The company faced headwinds from lower shipment volumes, softer freight rates, and cautious customer behavior across key trade corridors.

Financial Performance Overview

The company's financial metrics reflected the challenging operating environment during the quarter ended December 31, 2025.

The decline in profitability margins was attributed to softer freight rates and the company's strategic decision to maintain customer relationships despite thinner margins. Management emphasized their focus on protecting long-term business continuity during this challenging period.

Operational Metrics and Volume Analysis

Container throughput during Q3 FY26 was 20,710 TEUs, representing a decline from earlier periods. For the nine-month period, total TEUs handled reached 67,742. The revenue per TEU averaged approximately INR 69,000 during the quarter, down from previous periods due to market softness.

Management noted that freight rates dropped by 28-30% during the quarter, with average per TEU costs declining from approximately INR 79,000 in Q2 FY26 to around INR 67,000 in Q3 FY26, representing a 16% decrease.

Business Mix and Geographic Distribution

Sea import operations remained the dominant revenue contributor, accounting for 79% of total revenue during Q3 FY26. Sea export showed improvement, increasing to 14.5% of revenue compared to 12.2% in the previous quarter.

Geographically, Asia continued as the primary market, contributing 83% of Q3 FY26 revenue and 84% for the nine-month period. North America accounted for 8% of Q3 revenue, followed by Europe at 5%.

Industry Verticals and Customer Concentration

Renewable energy remained the largest industry vertical, contributing 32.7% of Q3 FY26 revenue. Engineering products showed significant growth, increasing to 20.2% of revenue compared to 10.8% in the previous quarter, driven by project cargo movements and higher dispatch activity.

Customer concentration remained stable with the top 5 customers contributing INR 438.9 million (30.5%) of Q3 FY26 revenue and INR 1,976.3 million (37.5%) for the nine-month period.

Operational Expansion and Fleet Growth

Despite market challenges, Glottis continued selective investments in its operational footprint. The company opened a new branch in Ahmedabad to strengthen its presence in West India and enhance customer service capabilities in the region.

Fleet expansion continued with the addition of 25 vehicles during the quarter, bringing the total owned fleet strength to 42 vehicles. This expansion aims to improve first-mile and last-mile control while reducing dependency on third-party logistics providers.

Management Outlook and Strategic Focus

Management acknowledged the challenging market conditions, citing policy changes and global freight market softness as key factors impacting performance. The company maintained its focus on customer engagement, disciplined cost control, and long-term relationship building.

Looking ahead, Glottis plans to continue expanding its service depth, broadening customer coverage in target industries, and maintaining tight operational cost control. The company emphasized its measured, long-term approach and requested investors to evaluate performance from a long-term perspective rather than quarterly fluctuations.

Glottis Limited has announced its unaudited financial results for the quarter ended December 31, 2025, reporting a significant decline in revenue and profitability amid challenging global trade conditions. The Chennai-based logistics solutions provider faced headwinds from softer freight rates and reduced shipment volumes across key trade routes.

Financial Performance Overview

The company's Q3FY26 performance reflected the impact of a difficult operating environment on key financial metrics:

Revenue from operations declined 27.2% year-on-year to Rs 1,439 million, while quarter-on-quarter revenue fell 33.0%. The company's profitability was severely impacted, with EBITDA margins compressing to 2.8% from 9.5% in the corresponding quarter last year.

Nine-Month Performance

For the nine-month period ending December 31, 2025, Glottis reported revenue of Rs 5,267 million, down 16.9% from Rs 6,340 million in the previous year. EBITDA for 9M FY26 stood at Rs 390 million with a margin of 7.4%, compared to Rs 623 million and 9.8% margin in 9M FY25. Profit after tax declined 39.7% to Rs 270 million.

Operational Metrics and Segment Performance

Glottis handled 20,710 TEUs of ocean freight import during Q3FY26, with volumes remaining lower in line with industry trends. The revenue contribution by segment showed ocean freight import continuing to dominate at 78% of total revenue, followed by ocean freight export at 14%.

Geographically, Asia remained the leading region contributing 83% of revenue in Q3FY26. From an industry perspective, engineering products accounted for 33% of revenue, while home appliances contributed 20% and renewable energy 19%.

Management Commentary

Managing Director Ramkumar Senthilvel attributed the performance to softer global trade activity and continued pressure on freight rates. He noted that the company remained focused on protecting customer relationships and maintaining service quality while aligning capacity with demand conditions. The management emphasized disciplined shipment selection and variable cost alignment to mitigate the impact of challenging market conditions.

Post-Earnings Conference Call

Following the announcement of Q3FY26 results, Glottis Limited conducted a post-earnings conference call for investors and analysts on February 19, 2026. The company has now made the audio recording of this earnings call available on its website for stakeholders who wish to review the detailed discussions about the quarterly performance.

The audio recording provides comprehensive insights into the company's quarterly performance, management's strategic outlook, and responses to analyst queries regarding the challenging operating environment and future business prospects.