Revenue for rail operators is expected to increase by double digits. According to India Ratings, the warehousing industry is expected to experience a 3-5% YoY increase in organic rentals this fiscal year. The need for Grade-It is anticipated that a space would stay stable. With less geopolitical concerns, such as the Red Sea crisis, and normalized US-bound traffic, port volumes will probably gain from the transfer of coastal commodities and the easing of global container freight. However, increased direct port deliveries and fierce competition at key ports are likely to keep container freight stations’ EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) limited.
Government investments in ports, rail, road, and air transportation are major growth drivers, according to India Ratings, which has given the logistics industry an improved outlook for FY26. For rated logistics companies, sustained investments and scale expansions are anticipated to improve profitability and cost effectiveness. With the help of private investments in rakes and dry terminals in 2024, rail operators are expected to see double-digit revenue increase by FY26.
In addition to the steady demand for Grade-A premises, warehousing is expected to witness organic rental increase of 3-5%. Notwithstanding these advantages, container freight terminals’ profitability is probably going to stay low this fiscal year. Initiatives like the PM Gati Shakti National Master Plan, the National Logistics Policy, and higher private capital investment in logistics infrastructure all contribute to the sector’s expansion.
Under Maritime Vision 2030, India’s Logistics Performance Index ranking rose to 38 in 2023 with the goal of ranking in the top 25 by 2030. The Western Dedicated Freight Corridor’s full commissioning is anticipated to increase container train operators’ profitability. Revisions to haulage charges and competition, however, continue to be obstacles. Due to consistent operational performance and responsible leverage profiles, the overall rating outlook for logistics companies is still solid.
