Domestic logistics industry revenues to grow up to 9% in FY25: ICRA

The domestic road logistics industry is expected to register a growth of up to 9 per cent in revenues in the ongoing 2024-25 financial year, according to ICRA. The organised road logistics sector witnessed a growth of 4.6 per cent in the 2023-24 fiscal year, the rating agency stated. As per ICR, the industry logged a revenue of ₹23,273 crore in FY24. “ICRA expects the revenues of the Indian road logistics industry to grow by a moderate 6-9 percent year-on-year (y-o-y) in FY25,” it said. The agency further said it also maintains a stable outlook for the sector, fuelled by various government measures and policies in favour of the sector on expectations of good demand outlook from segments like e-commerce, FMCG, retail, chemicals, pharmaceuticals, and industrial goods. Srikumar Krishnamurthy, Senior Vice President & Co-Group Head of Corporate Ratings, ICRA, said, “In FY24, the growth was subdued on account of a relatively muted demand amid high inflation, an uneven monsoon, a relatively lacklustre festive season and the rising interest rate regime.” “We expect the industry operating profit margins to remain in the range of 11-12 percent in FY25, with the organised players expected to maintain the pricing premium amid an overall inflationary cost scenario,” he said.