Glottis revenue rises 29 per cent in Q2, but margin compression pushes company into marginal loss

Chennai-based Glottis is expanding beyond its historically import-led ocean freight business through exports, air freight and selective ownership of Logistics assets. The strategy helped lift revenue in the second quarter of FY2027, but a sharp rise in service and operating costs eroded profitability and pushed the freight-forwarding company into a marginal loss.

Revenue from operations rose 28.8 per cent YoY and 17.9 per cent QoQ to Rs 276.5 crore in Q2 FY2027. Total income increased 29.4 per cent to Rs 278.3 crore. However, earnings before interest, Tax, depreciation and amortisation (EBITDA), excluding other income, declined 81.5 per cent YoY to Rs 3.4 crore, while the EBITDA margin narrowed to 1.2 per cent from 8.4 per cent a year earlier.

Profit after tax (PAT) moved to a marginal loss of Rs 0.02 crore, against a profit of Rs 12.4 crore in Q2 FY2026 and Rs 10.7 crore in the preceding quarter. The pressure reflected the cost of services rendered rising to Rs 259.6 crore from Rs 186.5 crore a year earlier. Higher employee expenses, depreciation and amortisation, and finance costs also weighed on earnings. For the first half of FY2027, revenue rose 33.5 per cent to Rs 511 crore, while EBITDA fell 44 per cent and PAT declined 56.1 per cent.

The quarter’s revenue mix shifted sharply towards exports. Sea Export revenue increased 344.4 per cent YoY and accounted for 42 per cent of total revenue, up from 12 per cent in Q2 FY2026. Sea Import remained the largest vertical at 50 per cent, though its contribution fell from 81 per cent. The company handled 21,375 twenty-foot equivalent units during the quarter. Air Import and Air Export revenue rose 68.9 per cent and 420 per cent, respectively, from a low base.

Glottis also incorporated Glottis Logistics Sdn. Bhd. as a wholly owned Malaysian subsidiary to support freight-forwarding and logistics services. It plans to begin deploying containers in Q3 FY2027 after adding trailers in the first quarter, with the planned capital expenditure programme expected to be completed within FY2027 using initial public offering proceeds.

As of 10:57 am on November 12, 2026, Glottis shares were trading at Rs 57.40, down 3.64 per cent from the previous close. The stock was about 22 per cent below its 52-week high of Rs 73.76, while its one-year decline of 21.98 per cent contrasted with a marginal 0.08 per cent fall in the BSE 500 over the same period. The company’s market capitalisation stood at Rs 550.44 crore.

What This Means for Investors

The quarter reinforces that Glottis can grow revenue and diversify its freight mix, particularly through sea exports, air cargo and a broader customer base. Sea Export becoming 42 per cent of revenue is strategically significant because it reduces dependence on Sea Import, while lower renewable-energy exposure also broadens the industry mix. However, the financial outcome shows that revenue expansion alone is insufficient when freight realisations, service costs and operating expenses move adversely. The key test is whether shipment-level profitability improves as the new mix scales.

The development is mixed for the investment case. Diversification, Malaysia expansion and container deployment could strengthen service control and support integrated logistics capabilities over time. Yet the steep fall in EBITDA margin to 1.2 per cent from 8.4 per cent a year earlier raises the importance of execution discipline. Investors will need to monitor whether IPO-funded assets improve utilisation and margins without adding pressure on working capital, which had previously absorbed significant cash. At 14.61 times trailing earnings and 8.76 times enterprise value to trailing EBITDA, sustained earnings recovery remains central to the valuation outlook.

Disclaimer: The article is for informational purposes only and not investment advice.