Sical Logistics witnessed a significant surge in its stock price, hitting the upper circuit limit after announcing a major contract win worth ₹4,038 crores. The integrated logistics solutions provider's shares jumped 5% to ₹93.30 from the previous close of ₹88.90, reflecting strong investor confidence in this substantial order win.

Major Contract Win Details

The company secured a Letter of Acceptance dated January 12, 2026, from South Eastern Coalfields Limited for operations at the Porda Chimtapani Open Cast Project in Raigarh, Chhattisgarh. This contract represents one of the largest project wins in the company's history and significantly strengthens its position in the coal logistics and mining services segment.

The contract's extended execution period of 4,214 days provides strong long-term revenue visibility and earnings stability, with potential annual revenue of approximately ₹336 crores over the next 11 years.

Recent Corporate Developments

Beyond the major contract win, Sical Logistics has undertaken several strategic initiatives. The company's board approved the issuance of an unconditional and irrevocable corporate guarantee of up to ₹20 crores in favor of CSB Bank Limited. This guarantee supports credit facilities for its step-down subsidiary, Sical Multimodal and Rail Transport Limited (SMART), including a ₹10 crore cash credit limit and a ₹10 crore term loan with an eight-year tenure.

Additionally, the company completed the sale of non-core land assets measuring 5.52 acres in Trichy, Tamil Nadu, as part of its NCLT-approved resolution plan, supporting balance sheet strengthening and financial consolidation.

Strong Financial Performance

Sical Logistics has demonstrated impressive financial turnaround in recent quarters. The company's financial metrics show substantial improvement across key parameters:

The company has also made significant progress in debt reduction, bringing down its debt levels from ₹1,200-1,700 crores in FY21 and FY22 to ₹607 crores as of Q2FY26.

Company Overview and Market Position

Incorporated in 1955 and headquartered in Chennai, Sical Logistics operates as one of India's leading integrated logistics solutions providers. The company offers comprehensive end-to-end logistics services across multiple segments, including Container Freight Station (CFS) operations, Coastal Shipping, Container Rail services, Integrated Logistics solutions, Mining services, and Offshore Logistics.

With a current market capitalization of ₹609 crores, the company maintains a strong presence across ports, rail, road, and marine logistics, serving diverse sectors such as infrastructure, energy, and commodities. The stock has delivered a compounded return of 123% over the last three years, demonstrating consistent value creation for shareholders.

Sical Logistics has secured a major contract worth ₹40.38 billion from South Eastern Coalfields Limited (SECL), marking a significant milestone for the logistics company. This substantial contract award demonstrates the company's growing capabilities in the coal transportation and logistics sector.

Contract Details

The contract details are summarized below:

Strategic Significance

This contract award represents a major business development for Sical Logistics, significantly expanding its operations in the coal sector. South Eastern Coalfields Limited, being one of the largest coal-producing subsidiaries of Coal India Limited, offers substantial opportunities for logistics service providers.

The ₹40.38 billion contract value indicates the scale and duration of services that Sical Logistics will be providing to SECL. This partnership is expected to strengthen the company's position in the coal transportation and logistics segment, which forms a crucial part of India's energy infrastructure.

Business Impact

The contract win positions Sical Logistics to leverage its expertise in handling bulk commodities, particularly coal transportation services. This development aligns with the company's focus on expanding its presence in the logistics sector, especially in serving major public sector enterprises involved in coal production and distribution.

The partnership with South Eastern Coalfields Limited provides Sical Logistics with a substantial revenue opportunity and reinforces its capabilities in managing large-scale logistics operations for the coal industry.