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Snowman Logistics Ltd

| Quarterly Financial Results Q3 FY 2025-26

NEUTRAL SENTIMENT

Report Source

⬤6th Feb 26

Summary : Snowman Logistics reported Q3 and 9M FY26 losses despite revenue growth, declared an interim dividend, and is managing multiple legal and regulatory challenges.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Purchase of traded goods
  2. (Increase)/decrease in inventories of traded goods
  3. Operating expense
  4. Employee benefit expense
  5. Finance costs
  6. Depreciation and amortisation expense
  7. Other expenses
  8. Q3 FY26 Revenue from operations: INR 14,372.48 lakhs.
  9. 9M FY26 Revenue from operations: INR 46,206.98 lakhs.
  10. Segment-wise: Warehousing services, Transportation services, Trading and distribution.
  11. GST demand orders amounting to INR 1,352.73 lakhs (appeals filed, pre-deposit made).
  12. Other GST show cause notices amounting to INR 152.04 lakhs pending.
  13. Potential losses from Krishnapatnam land registration if appeal fails (indemnified by GDL).
  14. Income tax disallowance under Section 35AD (no tax impact due to MAT, penalty proceedings initiated).
  15. Paid-up equity share capital: INR 16,708.80 lakhs.
  16. Other equity (as of March 31, 2025): INR 23,991.23 lakhs.
  17. Total assets (as of December 31, 2025): INR 79,064.59 lakhs.
  18. Total liabilities (as of December 31, 2025): INR 38,592.76 lakhs.
  19. Agreement to Sell (ATS) with Gateway Distriparks Limited (GDL) for land and warehouse acquisition at Krishnapatnam.
  20. The report presents Un-audited Standalone financial results.

Corporate Overview

  1. India (Mumbai, Hyderabad, Krishnapatnam, Siliguri mentioned)
  2. Legal and regulatory issues related to income tax (DVO report, Section 35AD disallowance) and GST demands.
  3. Rejection of sale deed registration for land parcels at Krishnapatnam.
  4. Assessing financial impact of new Labour Codes.
  5. Related party transactions with Gateway Distriparks Limited (GDL) for land acquisition.
  6. Cold chain logistics services, including warehousing, transportation, and trading & distribution.
  7. Factual and confident in resolving legal and regulatory challenges.
  8. Warehousing services
  9. Transportation services
  10. Trading and distribution
  11. Expanding capacity through land and warehouse acquisitions at Krishnapatnam.
  12. Acquisition of land and warehouses at Krishnapatnam, with INR 4,396.13 lakhs spent as of December 31, 2025.

Risk Factors

  1. Multiple ongoing tax and GST disputes.
  2. Krishnapatnam land registration faces rejection.
  3. Uncertain financial impact of new Labour Codes.
  4. Company reported net loss for period.

Key Drivers

  1. Declared interim dividend for shareholders.
  2. Strong revenue growth in warehousing.
  3. Strategic land and warehouse acquisitions.
  4. Auditors issued unmodified review opinion.

Auditor’s Report

  1. Unmodified opinion on the unaudited standalone financial results.

Board Commentary

  1. Snowman Logistics became a subsidiary of Gateway Distriparks Limited (GDL) with effect from December 24, 2024.
  2. Declared first interim dividend of Rs. 0.50/- per equity share (5.00%) for the financial year 2025-26.
  3. Legal and regulatory challenges related to Income Tax and GST.
  4. Issues with land registration for the Krishnapatnam project.
  5. Income Tax: District Valuation Officer report for Siliguri assets, Section 35AD disallowance for Mumbai/Hyderabad cold-storage units.
  6. GST: Demand orders under GST Act, 2017, and pending show cause notices.
  7. Labour Codes: Impact of new Labour Codes on operations, with an incremental impact of INR 276.76 lakhs disclosed as exceptional items.
  8. Krishnapatnam project: acquisition of land and warehouses, total spent INR 4,396.13 lakhs as of December 31, 2025.

Corporate Governance

  1. Audit Committee reviewed the financial results.

Management Discussion & Analysis

Future Strategy

  1. Continued investment in infrastructure (Krishnapatnam project).
  2. Monitoring regulatory changes related to Labour Codes.

Operational Focus Areas

  1. Resolving land registration issues for Krishnapatnam project.
  2. Managing ongoing legal and regulatory challenges.

Performance Drivers

  1. Revenue growth in warehousing and trading & distribution segments.

Risk Control Measures

  1. Management's belief in strong legal cases for tax and valuation issues.
  2. Indemnification from GDL for potential losses related to Krishnapatnam land transactions.
  3. Provision made for GST demands as an abundant caution.
  4. Monitoring finalization of Central and State Rules for Labour Codes.

Critical Risks

  1. Adverse outcomes in legal and regulatory disputes (Income Tax, GST).
  2. Uncertainty regarding the finalization and impact of new Labour Codes.
  3. Potential losses from Krishnapatnam land registration if appeal fails.