VRL Logistics shares soar 20% amid heavy volumes, profit jumps 4x in Q3FY25

Despite this rally, the stock has remained largely stagnant over the past three months

Shares of VRL Logistics skyrocketed 20 percent to Rs 559 apiece on February 6 after the company posted strong Q3FY25 results. The stock saw heavy trading volumes in early sessions, with approximately 8 lakh shares changing hands on the NSE and BSE—significantly higher than the one-week average of 66,000 shares across both exchanges.

Despite this rally, the stock has remained largely stagnant over the past three months, slipping 3 percent, compared to the Nifty 50’s 1 percent decline.

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VRL Logistics reported a 12 percent YoY increase in revenue to Rs 830 crore in Q3FY25, while net profit soared 4x YoY to Rs 59 crore. Operating performance also showed significant improvement, with EBITDA rising 78 percent YoY to Rs 172 crore. Margins expanded by a sharp 800 basis points YoY to 21 percent.

The company attributed margin expansion to the successful implementation of freight hikes, which boosted realisations across all sectors and geographies while maintaining tonnage.

Further efficiencies came from route optimization, reducing reliance on multiple transshipment hubs along major corridors. This minimized frequent loading and unloading of consignments, while better mileage and load factors for company-owned vehicles improved utilization—ultimately driving up margins.

VRL Logistics continued its expansion, increasing its branch count from 1,209 in FY24 to 1,248 in 9MFY25, with a net addition of 39 branches (64 new, 25 closed).

The company also ramped up capital expenditure, with Rs 276.05 crore spent in Q3FY25 and Rs 395.46 crore in 9MFY25. Key investments included property acquisitions in Bengaluru, Mysuru, and Mangaluru. Meanwhile, its long-term ICRA credit rating remains stable at A+ (Positive).

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