Ladies and gentlemen, good morning and welcome to the VRL Logistics Q3 FY 2026 earnings conference call hosted by Ashika Institutional Equities. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then 0 on a touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Disha Giria from Ashika Institutional Equities for the opening remarks. Thank you, and over to you, ma'am.
Thank you. Good morning, everyone. Welcome to the Q3 FY 2026 earnings conference call of VRL Logistics. First of all, I would like to thank the management for providing us the opportunity to host this call. From the management, we have Mr. Sunil Nalavadi, CFO of the company. Without further ado, I will hand over the call to Mr. Nalavadi for the opening remarks, followed by the Q&A session. Thank you, and over to you, sir.
Yeah, thank you, madam, and good morning to everyone. I warmly welcome all of you to the earnings conference call of VRL Logistics to discuss the financial and operational performance for the third quarter and 9-month ended FY 2026. I hope everyone has had an opportunity to review our investor presentation, which has been uploaded along with our financial results. The Indian logistics sector continues to benefit from retail and consumption, sustained public infrastructure spending, and structural reforms such as GST 2.0 and other policy initiatives aimed at improving efficiency and lowering overall logistic costs. These factors support a positive long-term outlook for the sector. Coming to our performance for quarter three of FY 2026, for the quarter ended December 2025, total income stood at INR 831 crore, broadly flat year-on-year basis, and grew 3% sequentially, driven by improved realizations, new client additions, and the return of some previously lost accounts.
Tonnage saw a quarter-on-quarter improvement supported by new account additions, growth in tonnage from the existing customers, and return of volumes following contract restructuring undertaken last year. Our daily tonnage has crossed 10,900+ tons during the quarter, reflecting improving demand trends. On a year-on-year basis, tonnage declined by 9%, primarily due to the exit of low margins and non-strategic contracts. We expect a gradual uptick in volumes going forward. During the quarter, we placed an order of 500 commercial vehicles, new HCVs, to meet the demand and improve fleet efficiency through replacement of older vehicles. Out of these 500 vehicles, around 100 vehicles have been already delivered in the month of January. The realization per ton stood at around INR 8,117, and it has increased by approximately 10% year-on-year basis, reflecting price hikes taken in the last year. We were able to maintain realizations with marginal sequential improvements.
Yield improvement remained a key profitability driver and reinforces our focus on sustainable margin-led growth rather than volume-led expansion. Our profitability EBITDA margin stood at around 20.9%, up by around 20 basis points year-on-year and 130 basis points quarter-on-quarter, supported by improved realization, discontinuation of low margin business, strict cost control measures, and better asset utilizations of the company. The fuel cost remained well controlled. Fuel cost as a percentage of total income declined to 24.8% from 26.4%, aided by increased bulk procurement from refineries, which accounted for about 40% of fuel sourcing during the quarter. Our captive fuel pumps increased from seven to eight, and further improving cost efficiency. Despite higher toll rates and additional toll plazas, bridge, and toll expenses, as a percentage of revenue remained under control.
The employee cost as a percentage of total income increased from 16.6% in Q3 FY 2025 to 18.1% in Q3 FY 2026 on account of annual increments. The vehicle running expenses increased from 4.9% in Q3 FY 2025 to 5.7% in Q3 FY 2026 on account of higher driver incentives. We continue to view these increases as investment in our people, particularly given the industry-wide shortage of skilled drivers, where VRL's on-roll driver model remains a key competitive advantage. The profit after tax for the quarter stood at INR 65 crores, registering a 9% year-on-year growth. On sequential basis, PAT has increased by almost 30%, largely driven by lower interest costs following debt repayment. The CapEx during the quarter stood at around INR 74 crores compared to INR 29 crores in quarter two of FY 2026.
Out of this INR 74 crore, INR 50 crore was deployed towards purchase of land and buildings at strategic locations in some selective locations. For the 9-month FY 2026, our total income stood at around INR 2,300 crore. EBITDA margin stood at around 20.5%, expanded by nearly around 330 basis points year-on-year basis, supported by 13% improvement in realization and sustained cost efficiencies. The PAT for the same period stood at around INR 165 crore, which has improved by around 52% on year-on-year basis. Our balance sheet remained strong. Net debt stood at around INR 272 crore as of December 2025, down from INR 304 crore in September 2025, reflecting healthy cash generation. The receivable days remained at around 11-12 days, among the lowest in the industry, underlining the strength of our collection mechanism and diversified customer base of over nine lakh GST-registered customers.
Considering this improvement in cash profits, the board of directors has approved the interim dividend of INR 5 per share to reward to the shareholders. And in terms of operationally, our network continues to scale. As of December 2025, we operate with around 1,250 branches and 50 transshipment hubs across 24 states and 5 Union T erritories. And fleet rationalization continues, with older vehicle being scrapped and utilization of owned new assets improving. Around 80% of our fleet is debt-free as of now, and 15% is fully depreciated, providing strong operation leverage. Our strategic priorities remain unchanged: profitable volume growth, disciplined cost management, and tight working capital control. Looking ahead, while near-term macro uncertainty persists, we remain optimistic. Improving demand conditions, stronger marketing initiatives, fleet rationalizations, and expansion in underpenetrated geographies position us well to drive gradual volume recovery while sustaining profitability. With this, I conclude my opening remarks.
We now open the floor for questions and look forward to an engaging interaction with all of you. Thank you.
Thank you very much, sir. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on the touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Krupashankar NJ from Avendus. Please go ahead.
Good morning, and thank you for the opportunity. My first question would be on the volume growth side. So right now, we see that the base has caught up, and the volume decline, what you have seen in this quarter, should most likely be the last of it. Just wanted to get your sense around what is your expectation on volume growth going ahead, and what are the steps which you will be taking towards achieving that volume growth?
Yeah, on volume growth, one thing is we are expecting at least around sequential basis, at least around 3%-4% growth in tonnage, even in last Q4. And basically, out of this, around 345,000 tons have been already delivered in the month of January. So based on that, we are expecting at least around 4% tonnage growth we are expecting in Q4. And with that, even on a sequential basis, the 2% growth in the next year, quarter-on-quarter basis, that will lead to almost around 10% growth in tonnage in the next financial year. That's what we are expecting. And basically, what we are doing, we are opening some of the branches also, and we are aggressively doing marketing activities. And apart from that, we are identifying some of the lost customers and approaching them too, or customers themselves are approaching us to, again, revamp the business.
That is giving a lot of support for us to having this kind of a growth.
Got it. So any targets with respect to branch addition in the next year? And are you looking at it primarily from higher volumes from existing branches? So what would be your strategy over here? Are you looking at, for example, in the north and northeast, you had expanded branches, and that was contributing to a significant portion of volumes in 2023, 2024? Just wanted to get a sense around what would be the strategy this time around.
Yeah, again, the additional activity what we are doing is apart from opening the new branches for the company-owned branches. Actually, we are considering to appoint the franchises or agents in some of the newer geography or even in the existing market. And see, basically, what it is supporting is we are identifying some of the franchises who are expert in the business, either it may be local or with other competitors or something like that. And we are offering them to the agents. And for their business perspective, they are having certain limitations. So some of the people are unable to, they are local people, and they are unable to book the consignments across the country. So we are appointing them as exclusive agents to the company, and definitely, that will give support to us.
Right now, for this quarter, we have already appointed in the month of January also, around 15-20 agents have been appointed. We are having a good number of additions. We are having a plan to add a very good number of agents going forward.
Okay. Lastly, you also mentioned about fleet addition, I think, about 500-odd CVs to meet incremental demand and replacement of old fleet. So just given that 20% of your fleet is already depreciated, that translates to about 1,200. Is it fair to assume that the new fleet would be adequate to meet your growth expectation of 10%, or would you be taking more lorry hire for meeting incremental demand?
Yeah, out of 500 vehicles, 100 vehicles have been already delivered in the month of January. And here, what our guidance is, around 10% increase in the volume. And even 500 vehicle addition will lead to increase of 10% addition in the capacity. So overall, it will match whatever we are expecting on the tonnage. The addition in the capacity will match to that extent.
That will be the overall addition. Any plans on FY 2027 on CapEx, sir? What would be your fleet addition plans next year?
Yeah, now, see, most of the rectifications in terms of the business contracts and rates have been already done. And now, the complete focus is on the volume growth. So this trend will continue even for the FY 2027 also. So we are having at least internal around the plans and something like that, at least quarter-on-quarter, we have to grow. Sequentially, even if you assume 2%-3% growth, then it will lead to at least around 10%-12% volume growth even in FY 2027. And whatever CapEx required to that additional volume, definitely, we will incur additional CapEx to that extent.
Understood. Thank you. I'll get back into the queue.
Yeah, thank you.
Thank you. Participants who wish to ask a question may press star and 1 on the touch-tone telephone. The next question is from the line of Disha Giria from Ashika Institutional Equities. Please go ahead.
Good morning, sir. So my question is regarding the realization. What I understand is that we had taken price hikes from end of second quarter, FY 2025. So a lot of those price hikes might have been factored in the base period, despite that we have had a 10% realization gain. So just wanted to understand that, how should we see it going forward?
Now, on the rate rationalization, there are two things, ma'am. See, whatever the freight rate increase, actually, we did in quarter two of last year. And in the quarter four of last year, what we did, we identified all low-margin businesses, and we discontinued those contracts. So that has led to further improvement in the realizations. So when we took up increase in the freight rates, actually, our realizations have been improved by around 10%-11% or so. And because of this withdrawal of the low-margin contracts and other things, that has led to almost around 5%-6% increase in the realization.
All right. So going forward for the fourth quarter and sequential quarters, we can assume the margin since we had let go of the low-margin business, around 4%-5% year-on-year realization gain can be assumed for the coming two, three quarters?
No, see, around 1%-2%, we can assume, not beyond that.
All right. Understood, sir. Thank you.
Thank you. The next question is from the line of Alok Deora from Motilal Oswal. Please go ahead.
Hi, sir. Good morning. Sir, just had a couple of queries. So, sir, now in fourth quarter, how we should look at it, Abhi, because the base is now revised or it's rebase now with what you had the quarter low base quarter after the change in the policy or strategy where you let go of low-margin business. So now, going forward, what could be the realization be, say, for fourth quarter? And how should we also look at the volumes? Because the reductions have kept on coming down. And now, in the third quarter, we did -9%. So how we should look at fourth quarter and next year?
Yeah, fourth quarter, we are expecting a tonnage growth of around 3%-4% on a sequential basis because for the month of January, we have already delivered around 345,000 tons. Considering this volume, definitely, in February and March, again, we are expecting good volumes, which will lead to around 4% growth in the tonnage. The realizations will be maintained at the current level. Next quarter, on a sequential basis, even if we assume around 2% growth based on the Q4 tonnage, so that will lead to at least around 10%-11% growth in the tonnage.
Next year, 10-11 tonnage growth?
Yeah.
Okay. No realization improvement?
Realization will be maintained at the current level.
Okay. You mean the quarter four exit level?
Yes.
Right. Okay. So next year, we are looking at a 11% kind of revenue growth, or it would be?
Yeah, 11% revenue growth. That will lead to the revenue of around INR 3,600 crores in the financial year 2027. And with a EBITDA of around 20.5%, then EBITDA will be in the range of around INR 730-740 crores.
Okay. Okay. So 20.5, we expect to maintain in the next year also?
Yeah, around 20%, definitely.
Okay. Sir, we had given out this 2-3% price, sorry, wage correction, which the margins were to get impacted. So that impact is already in this 20%, or something has happened there because the margins did not really come down after that? I mean, it's still at 20%.
Yeah, basically, what happened, the fuel cost has supported us further. The fuel cost as a percentage is almost reduced by around 1.6%-1.7%. So that has compensated with increase in the employee cost.
Okay. Okay. So now, the new normal margin you are saying is instead of 17-18, it will be new normal will be 20-21?
Yeah, around 20%, you can say.
20%. Right. And CapEx for next year, I missed that number. If you can repeat CapEx for this year next year?
See, there are 2 CapEx. One is the addition of this 500 commercial vehicle. That will fetch almost around INR 160-170 crores investment. And apart from that, we identified some of the locations where actually we want to buy some land and building. That will be in the range of another around INR 160-170 crores. So in a total, next year. Yeah, next year. So total CapEx we are expecting next year, yeah, around INR 350 crores.
Okay. Okay. Just last question. So any sharp improvement in the CV buying which you are seeing? Have the volumes improved quite or the outlook improved quite materially that the CV volumes are also coming very good? And so because from our side, we are just already doing it as per the tonnage growth. So just your thoughts on that.
In outside market, most of the cases, see, nobody is owning the vehicle, the leading service.
Correct. Correct. Correct.
In other segment, there is an improvement, say, like infrastructure and all related vehicle, commercial vehicle, there is an improvement.
Okay. But logistics, you are saying it's not something that it's a kind of the usual 8%-10% volume growth?
Yeah, it's spread, actually. It is spread. And most of the vehicle owners, again, these are all small fleet owners.
Right. Right.
Yeah.
Okay. Okay. Got it. So, sir, if I just sum it up, so there is no more improvement in realization which we are expecting ahead. That is number one. Whatever the incremental volume, incremental revenue growth will come, which will be largely from the volume growth, which is expected to be around 9%-10% ahead.
10%-11% next year.
10%-11% for next year. Maybe after that, more like 8%-9% on the higher base, right?
Yes.
But no price change we are expecting further anytime soon?
No, right now, no. Unless there will be substantial change in the cost structure.
Okay. Okay. Okay. Got it, sir. Got it. Okay. Thank you so much, sir. That's all from my side.
Yeah, thank you.
Thank you. The next question is from the line of Pranav Doshi from Ardeko Asset Management. Please go ahead.
Yeah, hi. Thank you for the opportunity. So my first question is on the volume growth. So can we break it down between, let's say, what was the growth from the current network? What was the attrition that we are looking from the current network? And what was the growth from the new client quarter-on-quarter?
Yeah, basically, if you see in quarter three, we added almost 10% of the tonnage has contributed from the new customers. Out of this, again, we lost a tonnage. Year-on-year basis, around 8% of the tonnage we lost because the customers have discontinued business with us or we discontinued their business contract. And there is a 1% growth in tonnage from the existing customers. We have continued the business, and their tonnage has improved by around 1%. So to sum up this, the quarter-on-quarter, we grown by around 3%.
So, sir, you mentioned YoY loss of 8%. That is QoQ, right? So Q2 on Q3.
Yeah, QoQ. QoQ, sorry. So for year-on-year basis, there is a decline of the customers we have left that accounted almost around 18%. And the tonnage which came from the new customer is around 15%. So because of this, we lost around 3% tonnage. And the decline from the existing customer is around 6%. So both put together, the decline in the tonnage is around 9%.
Right. So, sir, my next question would be that let's say in a normal business circumstance, so we took a price hike and therefore, there was a lot of loss of volume over the last one and a half years. But if we had to say in a normal business operations, what is the general QoQ volume iteration that we are looking at, so on a steady-steady basis? So yeah.
Look, definitely, see, we are going to see how we did in quarter three. For example, 3% we grown. But this lost in customer, actually, it will continue. See, on a sequential basis, around 5-6%, at least, it will be there. But the new customer addition, what we did, 10% growth on quarter-on-quarter basis, that number will further improve. And even from the existing customer, what we are looking, the 1% growth from the existing customer, even that number is going to be improved further. So that's the reason on a sequential basis, at least for quarter four, definitely, it will be in the range of around 4% growth in the tonnage.
Right. And, sir, on the CV front, sir, if we just look at the CV, so I think CV are now, again, going into upcycle. So there is a lot of demand. And I think for us, we are buying the vehicles according to our requirement. But overall, do you see any kind of a positive trend in the economy and especially in the logistics sector which can maybe push the growth towards, let's say, a bit higher than what we are expecting? So 10% is what we are expecting now. But let's say, can there be an upside risk to this given the possible higher economic activity in the country?
Definitely. Yeah, this is actually a very conservative number, actually, what I am indicating based on our internal plans. With the additional improvements, say, for example, now change in GST, that has supported some volume growth. Tomorrow, again, if there is a good monsoon spread and good agricultural activities, again, it will support further addition in the volumes. Even on FMCG side and all, if any improvement. Say, for example, textile, actually, which is a major contribution in our tonnage, almost around 16%-17% tonnage, we are carrying textile materials. There also, we are identifying some of the corporate clients. If addition of even some four, five big textile manufacturers in India, then definitely, that will lead to further improvement in the volumes.
Right, sir. And on the realization, so again, across the industry, the commentary or the thinking now has been that, let's say, people want to focus more on profitability also, not just on the volume front. So I think given we are already very profitable, but do you see any possible scope where, let's say, due to a better demand, we might consider a price hike, especially if the other players are also doing the same?
No, right now, see, we are at a good margin chart. So our focus is only on the volume. But we maintain whatever current realization plus margins.
Okay. Okay, sir. Just one final question. So given that the majority of our clients are smaller companies, so corporate is a very small chunk, so incrementally, are we looking at more traction from the corporate clients, or is the SME piece of our business also expected to do well going ahead? So how do we see the mix shifting over the next two to three years?
Our focus will remain the entire market. See, for example, whenever we go, we go with the commodities. Whether it may be corporate, it may be retail, we go and approach each and every customer related to that particular product. So always, our marketing activity is based on the product. See, for example, if we are entering into Northeast, which are the major products in those areas, say, one is incoming, then the next one is outgoing material. See, accordingly, we go and we identify customer. We go even mass marketing to this, even some of the mandis and all. Even we do that. The focus is based on the commodity rather than the kind of a customer. Hello? Hello?
Sir, we lost the line of speaker. We'll move ahead, sir.
Yes, please.
The next question is from the line of Ankita Shah. Over to you, ma'am.
Yeah, hi, sir.
Yeah, hello.
Hi. This INR 500 crore vehicle addition is over what period of time that you are expecting?
No, 500 number of vehicles.
Yeah.
It is for the current calendar year of FY 26, calendar year of 2026, till December 2026, what we are planning.
Okay. So this year itself. So this would lead to capacity expansion of 10%. But how much will it add to your revenue and EBITDA? So incremental revenue and profitability coming from incremental capacity addition would be how much?
No, basically, whatever volume growth we are anticipating, we are expecting the 10% volume growth in next financial year. To cater to this demand, actually, we are adding this vehicle. We are adding the capacity.
But there will be growth in the existing business also, right, X of this addition? I'm just trying to see how much the.
No, basically, see, the ownership of the vehicle and growth in tonnage, these two are totally independent. Whenever we get a tonnage growth, then how to carry those goods, we decide, whether it is through outside vehicle or own vehicle. Now, in FY 2026, we are expecting the 10% volume growth. To meet this demand, to serve this additional demand, actually, we are adding 500 vehicles.
Got it. These will be all.
And since almost around, say, now 96%-97% of the service we are providing through own vehicles, and the further demand will also be through own vehicles, then definitely, it will maintain our profitability margin of around 20%.
Got it. And these will be all on long haul? I mean, higher tonnage trucks?
Yeah, higher tonnage trucks. These are all around 20-tonner capacity vehicles.
20+ tons?
20 tonners.
Okay. Got it. Got it. Okay, sir. That's it from us. Thank you.
Yeah.
Thank you. The next question is from the line of Anshul from Emkay Global. Please go ahead.
Hi. Good morning. I hope I'm audible, sir.
Yeah, good morning. Please tell me.
Sir, first question is on this agent-owned or franchisee branch network. In our existing branch network, what would be the contribution of such branches?
See, currently, we are having, say, around 120, 130 agencies, which is contributing almost around, say, 9%-10% to the tonnage, currently. Going forward, actually, we wish to focus more on appointing new agencies.
Sure. Is there any difference in the realizations in the agent or the franchisee branches versus our own branches?
No. See, there will not be any change in the realization because ultimately, they have to follow our rate cards only. It is all bookings happening through system. So whatever rate card will appear in the system, accordingly, they have to book.
Okay. So.
It is common for both company-owned branches and franchises.
Okay. I'm trying to understand, how do we incentivize these agents? Because from what I understand, please correct me if I'm wrong, in an open market, these agents tie up with multiple logistics operators, and wherever they can sort of get cheaper realizations, they focus on sending those material or that tonnage through those LSPs. How do we sort of incentivize these agents to sort of ensure that their customer tonnage comes through our network?
See, one is actually, see, some of the markets, even customers need the support of the market also. See, considering our efficient service, and some of the customers actually will approach to us, and even agent can market our service level to the customers and add the new tonnage. And even our network, actually, they can go and market and expand the tonnage. And third thing is actually, we are incentivizing good commission to them based on the tonnage basis. And that will also lead, if somebody is earning lower realization tonnage, then definitely, he cannot offer good commission to the agent. Since we are earning good realization from the tonnage, then definitely, we can offer them better commission to the agent. Even that will also attract some of the new agents who are already into this business.
Got it. Second question is on our guidance of 20% EBITDA margins. Are we expecting gross margins to expand further in 2027 and 2028? Because from what I see, our employee expenses have grown at about, say, 14%-15% CAGR over the last two to three years. So 10% increase in revenue may not be able to sustain the same margins. So are we expecting higher procurement from fuel or more efficiencies because our driver incentives are also going up, toll prices are also going up? So just trying to understand, how do we maintain this 20% EBITDA margin run rate on the expectation of a 10%-11% revenue growth?
See, basically, out of the total expenditure, almost around 35%-40% of our expenses are fixed in nature. See, one is major: the employee cost, which is almost around 18% of the revenue, is fixed in nature. Whenever the revenue improves, then again, the percentage of employee cost will come down. The second thing, all rental expenses, which is almost around 8%-9% of the revenue, including the 10 days accounting. So even that is fixed in nature. All insurance costs related to vehicles and even the taxes, what we are paying to the vehicles, those are all fixed in nature. So considering these things, definitely, these fixed expenses ratio to the revenue will come down as and when the tonnage or revenue will improve.
Got it. Are we expecting gross margins?
Apart from that, on the fuel side, fuel side, also, we are adding the own pumps. See, in the last quarter, also, we added another captive pump. Going forward, we are having a plan to add another, at least, around 3-4 pumps in the next financial year. We are identifying the location where actually our consumption is on the higher side. There also, we wish to establish our own pumps. That will lead to further savings in the fuel cost.
Got it. That's it from my end. All the very best, sir.
Thank you.
Thank you. The next question is from the line of Krupashankar NJ from Avendus. Please go ahead.
Thanks for the follow-up, sir. Just a couple of questions. First one is on employee cost. You did mention in the last call that there's going to be about a 6-4 of monthly increase in the employee cost due to the inflation. But if you look at the number, I don't think it has increased to that level. Any one-off to call out here?
No, nothing. Based on some of the number of days and other things. On a gross level, actually, the monthly increment is around 5 to [inaudible] . Since we are talking about the employee cost, just I wish to highlight that. Otherwise, the new labor code, what the government has introduced, see, we are happy to say that there will not be any incremental liability on the company to comply with this new labor code. Whatever existing salary structures and the contribution from the companies, these are all already in line with the new labor code. So there will not be any further burden on the company on account of compliance with the new labor code.
Understood, sir. Understood. Also adding on to the point that while employee cost is fixed in nature, when is the next increase expected? Is it likely an inflationary increase in salary will be expected in mid of next year? Is that something which is expected? Why I'm asking is because.
Yeah.
No, why I was asking is because the sustenance of the 20% without taking any price hikes would require us to do a lot of cost control measures going ahead in the next year. Just wanted to get some sense around this.
No, basically, employee cost, we did an increase. We gave an increment in the month of August. Now, till August, anyway, it will not be there. But normally, if you take the past incremental process of the company, normally, we do after one and a half year or so, one and a half year, two years like that. So based on that, till March 2027, I don't think so there'll be further incremental process.
Understood. Understood. The last one on CapEx, sir, while I was looking at your fleet, incrementally, I've seen that you've scrapped more of 20, 25, and greater than 30-tonner trucks, right, over the last 6, 7 quarters based on tonnage. And now, you're looking to add close to about 20 tonners only. Are you not seeing any benefits of the larger trucks, the 20-25 ton or 25 ton plus, or are you seeing that these trucks were broadly underreplaced due to which you are strategically shifting towards 20 tons, something which I wanted to pick a bit on?
Yeah, one major thing that I want to highlight, even in the larger capacity vehicles, see, earlier, the current 28-tonner vehicles, earlier, those were 24-tonner vehicles before the government has announced the weight factor on the vehicles. Now, what is happening in 28-tonner capacity? They have not increased the size of the vehicle. The size of the vehicle remains same at around 32 ft. So because of this, even 20-tonner capacity vehicle also having a size of 32 ft and 28-tonner also having a 32 ft capacity, it's a 32 ft size. So because of this reason, what is happening, if you see the payload factor of the vehicle, the 20-tonner vehicles are more efficient than the 28-tonners.
Even though the registered tonnage is around 28 tons as of today, if you see the actual weight, what we are carrying, those vehicles, because of the restriction in the size, it is in the range of around 25-26 tons. So considering these factors and considering the return load factor also, so those numbers, the 28-tonner vehicle have been wherever the major maintenance or something like that, then we scrap those vehicles.
Got it. Got it. And if you had to take in a larger vehicle in the next category with a bigger size, so it would be then you will have to go into tractor-trailer sort of a system for you to get benefit because volumes are or rather, most of your shipments are volumetric in nature. Is that understanding correct?
Yeah, but we are already using some of the trailer. Around 120 vehicles, we are already having those vehicles. We are already using those vehicles in our system. Wherever both sides in our floats are there, wherever the busiest routes, there actually, we are using those trailers already.
Understood, sir. Understood, sir. Yeah. And with respect to CapEx, you did mention that you're going to add around INR 160 crore-INR 170 crore towards a new location. These are primarily hubs which you're referring to, or is it about the fuel pumps which you're going to add in the next year?
No, not a fuel pump. These are the critical branches. Wherever the major branches are also there, where actually we are not finding the ideal space, where actually we are investing.
How many such pockets are available, sir? Right now, I think you own close to about 12-13 such hubs, if I'm not wrong.
No, the owned hubs are around 10 hubs as of today. The branches are around, say, 40-45 branches are owned by the company as of today. Means properties are owned by the company. Whatever INR 57-58 crores we invested, these are invested in the branch of around 8-9 branches. Going forward, again, some of the branches have been already identified, which are in the range of around 10-12 numbers.
Okay. Okay. Got it. Got it. So hubs-wise, you're not adding anything. So it's going to be more of owning of.
For the time being, whatever CapEx we indicated, around INR 150-160 crores, this is other than the hubs. These are only investment in the branches and major branches, not the small branches, the major ones.
Understood. Understood, sir. Thank you, sir. That's it from my side.
Yes. Thanks.
Thank you. Participants who wish to ask a question may press star and one on the touchtone telephone. The next question is from the line. Participants who wish to ask a question may press star and one. Ladies and gentlemen, due to time constraint, that was the last question. I now hand the conference over to Mr. Sunil Nalavadi for closing comments.
Yeah, thank you. Thank you, everyone, for joining the call today. I'd like to reiterate that we remain confident on delivering around 10% volume growth in the next financial year. With that 10% volume growth, definitely, we'll maintain the current EBITDA margins, which are around 20% level. Definitely, that will lead to good growth in the absolute terms of EBITDA as well as profitability in the coming period. With this, I conclude the call. Thank you.
Thank you, sir. On behalf of Ashika Stock Broking Limited, that concludes this conference. Thank you for joining us. You may now disconnect your line.