Tiger Logistics Reports 52% Volume Growth in Q3 FY26 Despite Market Headwinds
Tiger Logistics (India) Limited reported strong Q3 FY26 performance with 52% year-on-year volume growth despite challenging market conditions. The TiGreen renewable energy vertical contributed over 40% to total revenue, establishing the company among top solar logistics providers. While revenue declined due to historically low freight rates in the cost-plus model, robust volume growth across diversified verticals demonstrates successful business expansion and reduced sector dependence.
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Tiger logistics delivered strong operational performance in Q3 FY26, showcasing remarkable resilience amid challenging market conditions. The company's earnings conference call, held on February 20, 2026, revealed significant volume growth despite geopolitical headwinds affecting international trade.
Strong Volume Performance Drives Growth
The company achieved impressive volume metrics during the quarter, demonstrating the effectiveness of its diversification strategy across multiple business verticals.
| Performance Metric | Growth Rate |
|---|---|
| Year-on-Year Volume Growth | 52% |
| Quarter-on-Quarter Volume Growth | 9% |
| TiGreen Revenue Contribution | Over 40% |
Chairman and Managing Director Harpreet Singh Malhotra highlighted that the volume growth occurred despite turbulent conditions in export businesses due to US tariffs and overall geopolitical situations, particularly affecting the Gulf region and EXIM business operations.
TiGreen Vertical Emerges as Key Growth Engine
The company's renewable energy logistics vertical, TiGreen, has established itself as a dominant revenue contributor. The division focuses primarily on solar sector logistics and has positioned Tiger Logistics among the top five to seven service providers in solar sector logistics.
Solar Sector Expansion
- Strong performance in renewable and solar panel logistics
- Significant market penetration with specialized handling capabilities
- Increased hiring to build specialized bench strength
- Anticipated growth from upcoming solar company CAPEX investments
Malhotra expressed optimism about the coming quarters, noting that solar companies are planning substantial capital expenditure over the next two quarters, involving significant imports of plants and machinery.
Revenue Impact from Market Conditions
While volume growth remained strong, the company experienced a slight decline in top-line revenue. This decrease was attributed to historically low freight rates during the quarter, which directly impacts revenue in Tiger Logistics' cost-plus business model.
Freight Rate Challenges
- Lowest freight levels experienced in recent years
- Direct correlation between freight rates and revenue in cost-plus model
- Revenue fluctuations expected due to market freight variations
- Volume growth remains the key business penetration indicator
Business Diversification Strategy
The company has successfully reduced dependence on particular sectors through strategic diversification across multiple verticals.
Key Business Segments
| Business Vertical | Performance Status |
|---|---|
| TiGreen (Solar/Renewable) | Strong growth, 40%+ revenue contribution |
| CUBOX (LCL Model) | Break-even achieved in first year |
| Pharmaceutical Sector | Good penetration in North India |
| Automotive Sector | Continued strong performance |
| Government Sector | Sustained business levels |
Regional Expansion and Sector Penetration
Tiger Logistics expanded its pharmaceutical sector presence through a strategic office opening in the upper north region six months prior to the quarter. This expansion covers the pharmaceutical corridor of Punjab, Haryana, and Himachal Pradesh, generating substantial container exports to various global destinations in pharmaceutical and chemical sectors.
CUBOX LCL Business Development
The company's Less than Container Load (LCL) business, CUBOX, completed its first year of operations. While achieving break-even status, the vertical has not yet reached initial expectations.
CUBOX Performance Highlights
- Break-even achieved within first operational year
- B2B model serving small and medium freight forwarding companies
- Longer development timeline expected for LCL model maturation
- Potential for better margins as business scales
Future Growth Outlook
Management expressed confidence about upcoming quarters, citing several positive factors including potential resolution of US trade issues and tariff matters. The company maintains a focused approach on strengthening existing successful verticals before expanding into new business areas.
Strategic Priorities
- Continued focus on solar and renewable energy logistics
- Deep market penetration in established verticals
- Selective approach to new business development
- Maintenance of strong financial hygiene and receivables management
The company remains open to inorganic growth opportunities through acquisitions of international logistics companies, though suitable acquisition targets have not yet been identified. Tiger Logistics maintains its focus exclusively on international freight forwarding and logistics, avoiding domestic logistics operations.
Historical Stock Returns for Tiger Logistics
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.41% | -5.44% | +9.70% | -37.69% | -37.69% | -37.69% |
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