Indian road logistics industry revenues to grow at a slower pace with 3%-6% in FY25 says ICRA; besides, the players remain exposed to environmental risks

 ICRA said operating profit margins are expected to remain range-bound at 10.5-12.5 per cent in FY2025 as concerns on cost inflation persist. The outlook for the sector continues to be stable, fuelled by sustained momentum in economic activities, enhanced traction of organised trade and continued support from varied segments like e-commerce, FMCG, retail, pharmaceuticals, and industrial goods.

It said e-way monthly volumes remained largely stable in the last four months at above 85 million, post reporting all-time high volumes of 100 million in October 2023, signifying resilient domestic trade and transportation activities.

The monthly FASTag volumes have also moved in tandem with the e-way bills, ranging from 295 to 350 million in the current fiscal, with an all-time peak of 348 million in December 2023, reflecting business cont, ICRA added.

ICRA Ltd Vice President & sector head corporate ratings Mr. Suprio Banerjee said, “Additionally, road logistics players also remain exposed to environmental and social risks.