Accuracy Shipping Limited has received a credit rating downgrade from CRISIL Ratings Limited, with its long-term bank facilities rating revised from CRISIL BBB-/Stable to CRISIL BB+/Stable. The downgrade affects bank facilities totaling ₹128.00 crores and reflects concerns about the company's recent operational performance.

Rating Downgrade Details

CRISIL cited weakening business performance as the primary driver for the downgrade, while acknowledging that the rating continues to factor in the promoters' extensive industry experience, prudent working capital management, and moderate capital structure.

Financial Performance Decline

The downgrade reflects a notable deterioration in the company's financial metrics. Operating income declined significantly to ₹355.00 crores in the first half of fiscal 2026, compared to ₹451.00 crores in the first half of fiscal 2025. The operating margin remained subdued at 3.40% during the first half of fiscal 2026.

Despite the operational challenges, the company maintains a moderate capital structure with limited reliance on external funds, resulting in a gearing ratio of 1.13 times and total outside liabilities to adjusted net worth ratio of 1.67 times as of March 31, 2025.

Key Rating Strengths

CRISIL highlighted several positive factors that continue to support the rating. The promoters bring over two decades of experience in the logistics industry, enabling strong market understanding and healthy relationships with suppliers and customers. The company operates an extensive network with more than 400 trucks, 14 branches across India, and over 72 agency agreements for global shipping.

Container handling capacity has shown growth over the long term, increasing from 69,102 containers in fiscal 2020 to 115,221 containers in fiscal 2024. The commercial vehicle business, launched in January 2022, generated revenue of approximately ₹193.00 crores in fiscal 2024.

Operational Challenges

The rating agency identified several weaknesses affecting the company's performance. Operating margins face pressure from intense competition in the highly fragmented logistics industry. The business remains directly linked to national and international trade, making it susceptible to economic slowdowns and global freight volume volatility.

Container handling decreased year-on-year to 102,789 from 115,221 in fiscal 2024, though realization increased from ₹40,963 to ₹68,859 per container. In the first half of fiscal 2026, the company handled 51,698 containers with average realization decreasing to ₹47,532, contributing to the topline decline.

Company Response and Outlook

Accuracy Shipping acknowledged the challenging operating environment for the logistics sector, particularly in light of recent financial performance and evolving geopolitical developments that may impact global trade and freight markets. The company stated it is taking necessary measures to mitigate these impacts and navigate prevailing uncertainties.

CRISIL maintains a stable outlook, believing the company will continue to benefit from its promoters' extensive experience and established client relationships. The rating agency noted that liquidity remains adequate, with bank limit utilization at around 94% for the eight months ended October 2025.

Accuracy Shipping Limited has released its official investor presentation for Q2FY26, revealing mixed performance with revenue decline offset by improved profitability margins and strategic diversification efforts.

Financial Performance Overview

The company's Q2FY26 results demonstrate the challenging operating environment while highlighting operational improvements:

Half-Year Performance

For H1FY26, the company reported consolidated revenue of ₹352.20 crores compared to ₹455.30 crores in H1FY25, representing a 23% year-on-year decline. However, gross margins improved to 8.0% from 7.1% in the previous year.

Segment-wise Performance

Accuracy Shipping operates across three primary business segments with the following H1FY26 revenue contribution:

Operational Highlights

The company handled 51,698 containers in H1FY26 with an average realization of ₹47,532 per container. The operational truck fleet stood at 393 vehicles, supporting the logistics operations across 14 branch offices in India.

Industry Diversification Strategy

Accuracy Shipping has been actively reducing its dependency on core sectors. In H1FY26, marble & granite contributed 38% of revenues (down from 43% in FY23), while ceramic tiles accounted for 26%. Other diversified sectors now contribute approximately 37% of total revenues, including significant contributions from rubber, paper, textile, and glass industries.

Management Commentary

Vinay Tripathi, Managing Director, commented on the results: "In Q2FY26, the logistics industry continued to experience a slowdown, driven by the prolonged impact of the US tariff situation and broader geopolitical uncertainties. While we reported a 25% YoY decline, we achieved a healthy 18% QoQ growth, indicating early signs of stabilization."

He further added, "We have expanded our presence across sectors such as Rubber, Paper, Textile, Glass and others, which together contributed ~37% of our revenues in H1FY26, underscoring our commitment to broad-based growth."

Financial Position

As of March 2025, the company's balance sheet shows total assets of ₹305.10 crores with total equity of ₹121.80 crores. Cash and cash equivalents improved to ₹3.70 crores in H1FY26 from ₹0.70 crores in the previous year.

Outlook

Despite challenging market conditions, the company remains focused on industry diversification and operational efficiency improvements. Management expressed cautious optimism for FY26, citing improved container volumes and strategic positioning across multiple industry verticals as key growth drivers.