CJ Darcl Eyes 10% Revenue Growth, Expands Into New Logistics Verticals

IPO-bound CJ Darcl Logistics is looking to sustain its growth momentum as it builds out newer businesses spanning a technology-led trucker marketplace, electric and alternative-fuel vehicles, and warehousing and distribution. 

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

The logistics company, backed by South Korea’s CJ Logistics Corporation, has grown at a compound annual rate of around 10% over the past few years. In FY26, consolidated revenue rose 10% year-on-year to ₹5,680.19 crore. 

Profitability, however, did not keep pace with revenue growth. EBITDA increased 1.88% to ₹273.24 crore, while net profit declined 6.87% to ₹86.72 crore during the year. 

CJ Darcl President Nikhil Agarwal expects the growth momentum to continue, supported by manufacturing activity in India, exports, industrial demand and government initiatives aimed at boosting industrial development. 

CJ Darcl plans marketplace for small fleet operators 

Technology is one of the areas where CJ Darcl is preparing its next leg of expansion. 

The company is working on a marketplace designed for small fleet operators associated with its network. The platform is intended to bring technology and multiple products together in one place while also allowing truckers to benefit from CJ Darcl’s purchasing scale. 

The potential user base is sizeable. CJ Darcl works with a pool of around 8-10 lakh truckers, while another 2-2.5 lakh new trucks engage with the company every year. 

The planned platform will also include accounting tools such as a digital khata-book, helping truckers keep track of costs linked to idling, commissions and other expenses. 

Electric trucks part of sustainability push 

CJ Darcl’s second area of focus is alternative fuels and electric vehicles. 

Rather than deploying electric trucks across its operations immediately, the company is speaking with customers to identify routes and applications where the vehicles can achieve sufficiently high utilisation. 

The economics remain challenging. According to Agarwal, an electric vehicle currently costs around three times as much as a 55-tonne diesel truck, the largest truck category in India. 

That cost difference means utilisation will be central to the company’s approach. CJ Darcl plans to invest in electric vehicles where customer contracts can make their deployment financially viable. Work on alternative-fuel solutions is also underway. 

Warehousing business grows rapidly 

Warehousing and distribution form the third major area of expansion. 

CJ Darcl had around 2.78 million square feet of warehousing space across India as of FY26. This part of the business has expanded at roughly 70-80% annually over the past two to three years. 

The company has also moved into warehousing and distribution for e-commerce and quick-commerce businesses and has already brought some clients on board. 

CJ Darcl is considering acquisitions as another route to grow newer businesses, particularly warehousing. Such a deal could expand its customer base or logistics footprint and create opportunities to offer road and multimodal freight services to those customers. 

Road remains the core logistics business 

Despite its expansion into newer areas, road transportation continues to be at the heart of CJ Darcl’s operations. 

The company transported 22.42 million tonnes of cargo in FY25. Alongside road transport, it operates rail and coastal logistics businesses. 

CJ Darcl has been involved in multimodal container movements by rail for close to two decades and entered coastal logistics around a decade ago. 

Demand conditions, however, have not been uniform across industries. Metals and minerals have experienced some slowdown, while FMCG activity has remained broadly stable. The company has also recorded weaker business volumes at some customers compared with the corresponding period last year. 

Higher diesel costs show up in freight rates 

Rising crude prices and the resulting increase in diesel costs have also begun feeding into logistics expenses and freight rates. 

For CJ Darcl’s contract logistics operations, diesel costs are generally passed on to customers. Higher shipping and freight expenses, however, can eventually weigh on industrial demand. 

The effect of higher diesel prices is already visible in freight rates, particularly on long-haul routes. 

At the same time, increasing commercial vehicle sales could bring additional trucking capacity into the market and potentially lead to some correction in freight rates. According to Agarwal, such an adjustment generally takes one or two quarters to become visible. 

IPO plans remain subject to market conditions 

CJ Darcl is also moving ahead with its proposed public offering. 

The company’s draft red herring prospectus has been filed and approved, though the timing of the issue will depend on market conditions and its bankers. 

CJ Logistics Corporation will not sell shares in the IPO. 

The South Korean logistics company continues to support CJ Darcl in areas including technology, artificial intelligence, warehousing and development of the trucker marketplace. Its presence across 38 countries also provides CJ Darcl with access to global customers. 

CJ Darcl sees India’s broader logistics infrastructure as another factor shaping the industry’s development. Expansion of ports and rail terminals, along with initiatives such as Gati Shakti, has helped improve the logistics ecosystem. At the same time, the company sees greater use of technology and data as an opportunity to improve efficiency in an industry where fragmentation across logistics services continues to add to costs.