Buy VRL Logistics; target of Rs 350: Motilal Oswal

Buy

Motilal Oswal's research report on VRL Logistics

VRL Logistics’ (VRL) revenue was flat YoY at INR8.3b (+4% QoQ), in line with our estimate. EBITDA margins stood at 20.6% (+40bp YoY and +160bp QoQ) vs our estimate of 18.9%. EBITDA margin continued to remain robust despite volume pressure, driven by cost rationalization efforts. EBITDA grew ~2% YoY to INR 1.7b in 3QFY26 (vs our estimate of INR1.6b). Lower interest expense and lower tax outgo led to APAT growth of 9% YoY to INR648m in 3QFY26 (12% above our estimate).

Outlook

We expect VRL to clock 8% volumes and a revenue/EBITDA/PAT CAGR of 10%/9%/13% over FY26-28. Reiterate BUY with a TP of INR350 (based on 22x FY28E EPS).

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VRL Logistics_10022026_Motilal Oswal