Detailed Rationale Due to inadequate information, Crisil Ratings, in line with SEBI guidelines, had migrated the rating of CCI Logistics Limited (CLL) to ‘Crisil BB+/Stable/Crisil A4+ Issuer Not Cooperating’. However, the management has subsequently started sharing requisite information, necessary for carrying out comprehensive review of the rating. Consequently, Crisil Ratings is migrating the rating on bank facilities of CCILL to ‘Crisil BBB/Stable/Crisil A3+’ from ‘Crisil BB+/Stable/Crisil A4+ Issuer Not Cooperating’
The ratings continue to reflect the established market position in the logistics industry and comfortable financial risk profile of the company. These strengths are partially offset by average operating profitability amid intense competition, and large working capital requirement. |
Analytical Approach Crisil Ratings has evaluated the standalone business and financial risk profiles of CLL. |
Key Rating Drivers - Strengths Established market position: The four-decade long experience of the promoters, their strong understanding of market dynamics and healthy relationships with customers along with the company’s robust network covering all major industrial and commercial centers through the country.
Company has achieved revenue of Rs 177.60 crore in fiscal 2025 against Rs 185 crores in Fiscal 2024, moderated due to lower order received from client during the year. However, as on Dec-2025 revenue achieved is Rs 136 crores. Going forward, company is planning a capital expenditure for purchasing additional trucks, which will likely boost the topline.
Comfortable financial risk profile: Financial risk profile remains supported by the limited reliance on external funds and healthy profitability. The capital structure has been strong, with gearing stood around 0.04 time and total outside liabilities to adjusted networth ratio at 0.10 time as on March 31, 2025; networth stood comfortable at Rs 132 crore in fiscal 2025 supported by healthy accretion to reserve.
The debt protection metrics of the company are robust with interest coverage and net cash accruals to adjusted debt 83.55 times and 2.63 times for fiscal 2025. Going forward, interest cover will remain above 40 times. |
Key Rating Drivers - Weaknesses Average operating profitability amid intense competition: The domestic road freight transport industry is highly fragmented because of low entry barriers and easy availability of vehicle finance. Lack of service differentiation may intensify competition and constrain the pricing power even for established players such as CCL.
The operating margin has been rangebound at 3.5-5.6% for the three fiscals through 2025. It stood at 3.82% in FY25 against 5.58% in FY24 moderation in revenue is on account of moderation in scale of operation. However, as on 9MFY26 operating margin stood at 7.9% on account of centralized traffic management and better negotiations with the vendors. Sustenance of operating profitability with increase in scale will remain a key monitorable
Large working capital requirement: Gross current assets stood at 124 days as on March 31, 2025 driven by high receivables of 119 days as on March 31, 2025. Of the debtors of Rs 58 Cr as on March 31, 2025, receivables worth Rs 13 Cr as due for a period greater than six months. Any further strain in working capital cycle primarily driven by higher debtors will remain a key monitorable |
Liquidity Adequate Cash accrual stood at Rs 12.72 crore in FY25 and expected to be in range of Rs 13-14 crores per annum, against nil repayment obligation over the medium term; the surplus cash will act as a cushion to liquidity. Bank limits have been utilized at around 60% for the 12 months through December 2025. Current ratio is estimated to be healthy at 5.55 times as on March 31, 2025. Low gearing and comfortable networth should support financial flexibility.
Company is planning to do capex towards purchase of EV and Hydrogen based vehicles from fiscal 2027 onwards for next 3 fiscals, funding will be done through internal accruals. |
Outlook Stable CLL will continue to benefit from the extensive experience of its promoters, and healthy financial risk profile over the medium term. |
Rating sensitivity factors Upward Factors
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About the Company CCIL was set up as a partnership firm (CCI Logistics) by Mr Bishamber Dayal Sharma and his family in 1977. The company was converted into Closely held Public Limited by March 2015. It provides logistical (including third-party) and value-added (such as packing and kitting) services, with transportation being its flagship business. Key functional areas include bonded trucking, project transport, scheduled transport, and customised transport services. The company follows an asset-light model, with its own fleet comprising about 10% of the total vehicles deployed on a daily basis. |
Key Financial Indicators
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Any other information: Not applicable |
Note on complexity levels of the rated instrument: |
Annexure - Details of Instrument(s)
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* - Issuer did not cooperate; based on best-available information
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Criteria Details
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