Global Ocean Logistics India Ltd. IPO

Global Ocean Logistics India Ltd. is a freight-forwarding and logistics company that offers integrated multi-modal logistics services, including ocean freight forwarding, road/rail transport, air freight, container freight station (CFS) services, customs clearance, project logistics and third-party logistics (3PL). The company operates across India and handles exports and imports, leveraging partnerships at 263 ports worldwide (36 overseas) and a network of agents in 28 countries. Its asset-light business model focuses on managing the flow of goods rather than owning large fleets or warehouses. Global Ocean’s key business segments are ocean freight forwarding, inland transport, air cargo forwarding, CFS solutions, and ancillary services like customs clearance and project logistics.

Now, let’s move to what’s working for the company and what’s not.

Global Ocean Logistics India Limited was originally incorporated on January 08, 2021, and is a freight forwarding company offering multi-modal logistics solutions across various regions in India, with a significant portion of its revenue generated from Maharashtra and Gujarat. They provide diverse services, including ocean and air freight forwarding, surface transportation, and Container Freight Station (CFS) solutions, operating primarily through major ports like Nhava Sheva, Hazira, Mundra, and Chennai. The company operates on an asset-light business model, relying on a network of trusted partners for containers and commercial vehicles rather than owning major transportation assets, and leverages a global network of over 20,000 agents. Supported by a team of 55 personnel as of October 31, 2025, they also offer integrated logistics, including third-party logistics (3PL) and custom clearance, serving clients largely in the Chemical, Textile, and Machinery sectors.

Revenue Breakdown geographical-wise -

KPI’s :- 

Operating Ratio has decreased over the years, but is still quite high, and the freight charges are still above 90%. Revenue per shipment gives us the average "Ticket Size" of a job, and a single shipment consists of multiple containers. Higher revenue per shipment gives us better margins compared to lower ones. It has not shown much improvement, and neither has revenue per container scaled significantly. Revenue per container tells us if they are making more revenue on the volume they are carrying( eg :- Hazardous materials give more revenue). This confirms that while the asset-light model offers scalability and has allowed the company to deleverage into a low-debt entity, the high cost of services leaves a narrow buffer for profitability, making the sustained recovery in shipment volumes critical for its future financial health.

Industry Overview

Indian Logistics Sector Overview: The Indian logistics market is witnessing robust growth. In FY2023, the industry was valued at approximately US$107.16 billion (₹9 trillion) and is projected to reach US$159.54 billion (₹13.4 trillion) by FY2028, growing at a CAGR of 8–9%. This expansion is driven by structural shifts, technological advancements, and government initiatives such as the National Logistics Policy launched in September 2022. The policy aims to optimise the landscape by increasing the share of railways in freight movement (currently at 18%) through the development of Dedicated Freight Corridors (DFCs) and expanding inland waterways.

Government Reforms and Infrastructure: To align India’s logistics costs (currently ~14% of GDP) with global standards of 8–9%, the government has implemented reforms like GST and invested heavily in infrastructure. As of April 2024, the Dedicated Freight Corridors were 96% complete, improving rail freight capacity and efficiency. These measures, alongside the expansion of e-commerce, are expected to drive rapid growth in the domestic express logistics segment, which is projected to clock a 14% CAGR from FY23 to FY28.

Market Structure: The sector involves a diverse mix of road, rail, and air cargo, yet remains heavily skewed towards road transport, which accounts for 71% of freight movement. Organised players currently control about 80% of the market and are expected to further consolidate their dominance by leveraging policies like e-way bills. The Less-than-Truckload (LTL) segment is also anticipated to grow at a 10% CAGR, driven by demand for smaller, more frequent shipments.

Key Drivers: Growth is fueled by rapid port privatisation and infrastructure upgrades, which have enhanced efficiency at major ports. The government’s focus on rebalancing the modal mix towards rail and waterways, combined with rising manufacturing and trade volumes, is steadily increasing the demand for third-party logistics. Overall, the sector is poised for sustained growth supported by a strategic push to reduce the logistics cost-to-GDP ratio.

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Global Ocean Logistics India Limited primarily serves a diverse range of industries, with a significant concentration in Chemical & Allied Products, Textiles & Commodities, and Machinery Equipment. They also cater to the Electrical & Electronics and Furniture, Fixtures & Equipment sectors.The company provides customised multi-modal logistics solutions to clients across these diverse industries, enhancing their operational efficiency and supply chain management through their global network of agents and partners.

Core products/services - 

Ocean Freight Forwarding: This core service involves shipping and coastal transportation of goods. It includes handling Over Dimensional Cargo (ODC), which refers to goods that exceed standard size or weight limits and require specialised handling and transportation planning.

Air Freight Forwarding: The company provides air cargo services to facilitate the rapid transportation of high-priority goods, managing the logistics of air transport for import and export needs.

Surface Transportation (Road/Rail): The company offers land-based transportation solutions through road and rail networks. This service utilises a network of third-party commercial vehicles and rail infrastructure to ensure the movement of cargo from ports to factories or vice versa.

Container Freight Station (CFS) Solutions: They provide services related to Container Freight Stations, which serve as centralised hubs for the consolidation (grouping smaller shipments) and deconsolidation (separating bulk shipments) of cargo before or after shipping.

Custom Clearance: The company handles regulatory compliance by offering custom clearance services, ensuring that goods can smoothly pass through customs barriers at various ports.

Third-Party Logistics (3PL) & Project Logistics: They provide integrated logistics solutions, known as 3PL, where they manage substantial parts of a client's supply chain.This also includes Project Logistics, which involves the planning and coordination of complex, often large-scale, cargo movements.

Business Model

Global Ocean Logistics India Limited operates a B2B multi-modal logistics model, functioning primarily as an asset-light freight forwarder and 3PL provider rather than an asset owner. The company generates revenue by coordinating end-to-end cargo movement via ocean, air, and surface transport, with a specialised focus on Over Dimensional Cargo (ODC) and Container Freight Station (CFS) solutions. They leverage a global network of over 20,000 agents to facilitate international trade, ensuring seamless "port-to-door" delivery for clients in sectors like Chemicals, Textiles, and Machinery.

Asset Structure: Unlike asset-heavy transporters who own fleets, Global Ocean follows an asset-light approach, meaning it does not own ships, aircraft, or commercial vehicles. Instead, they outsource transportation to third-party carriers and partners. This model significantly reduces upfront Capital Expenditure (CapEx) and maintenance costs, allowing for high scalability and the flexibility to pivot across trade routes without the burden of idle assets.

Revenue & Contracts: The company earns freight income driven by shipment volumes (TEUs) and prevailing market rates. It operates on a relationship-based transactional model without long-term fixed-price contracts, with a high concentration of business in Maharashtra and Gujarat. Consequently, revenue visibility relies on recurring orders from its top 10 customers (who contribute ~48% of revenue) rather than guaranteed subscription fees.

Cost & Working Capital: While not capital-intensive in terms of fixed assets, the model is working capital-intensive. The company faces a significant "cash flow gap" due to the need to pay international carriers upfront while offering credit terms to domestic clients. Direct freight costs consume approximately 90% of revenue, resulting in thin operating margins.

Financial Leverage: Reflecting its asset-light strategy, the company maintains a robust balance sheet with minimal leverage, reporting a Debt/Equity ratio of just 0.07x (as of FY25). Unlike leveraged peers, it plans to use IPO proceeds primarily to fund these working capital requirements to bridge cash flow gaps rather than for asset acquisition or debt repayment.

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Promoter Shareholding (Pre-Issue):

Key Management Team:

• Mr. Niraj Nandkishor Narsaria – He is the Promoter, Chairman, and Managing Director of the company. He holds a bachelor’s degree in Commerce from Mumbai University. With approximately 16 years of experience in the logistics industry, he oversees the overall management and operations of the company, playing a pivotal role in strategic decision-making.

• Mr. Anand Mehta – He is the Promoter and Whole Time Director of the company. He holds a bachelor’s degree in Commerce from Mumbai University. He has approximately 16 years of experience in the logistics sector, contributing significantly to the company's operational strategies and growth.

• Ms. Shweta Sarraf – She serves as the Company Secretary and Compliance Officer. She is an Associate Member of the Institute of Company Secretaries of India (ICSI) and holds a bachelor’s degree in Commerce and Law (LL.B). Appointed on August 16, 2024, she is responsible for ensuring compliance with statutory and regulatory requirements, including SEBI and ROC filings and has 6 years of experience. 

Mr. Satish B Singh – He is the Whole-Time Director and Chief Financial Officer (CFO) of the company, appointed on April 22, 2025, for a five-year term. He holds a Bachelor of Commerce degree from the University of Mumbai. He has over 14 years of experience in the logistics industry. His responsibilities include overseeing key financial functions such as strategy, planning, reporting, cash flow management, and budgeting. He also plays an active role in ensuring regulatory compliance, managing investor relations, and enhancing overall operational efficiency.

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Global Ocean Logistics' financial profile demonstrates a volume-led recovery in FY 2025 following a period of volatility, with top-line growth revitalised by increased shipment activity. While profitability remains modest, the company’s asset-light model enables efficient scaling without heavy capital expenditure. The cost structure is dominated by third-party freight charges, making margins highly sensitive to global rate fluctuations. A standout feature is the aggressive deleveraging that has created a healthy, low-debt balance sheet, providing significant financial stability. However, the business is facing persistent challenges in generating consistent positive operating cash flows despite reported profits.

Financial Summary (₹ in lakhs):

Capital Expenditure on Plant & Equipment:-  

Peer Comparison:

Global Ocean Logistics India Ltd.'s financials have been modest over the last 3 years. It has a lower debt/equity ratio and higher profit margins in FY 2025, but the improvements are very marginal. The margins are still quite low compared to its peers, and the revenue growth from the last three financial years has historically been almost flat, and scale is still modest, which shows they haven’t been able to expand significantly. 

IPO Objectives

Meeting Working Capital Requirements: The Company proposes to utilize approximately ₹21.27 Crores for funding its incremental working capital needs. In the freight forwarding business, working capital is critical as the company often has to pay carriers (shipping lines, airlines) upfront or on short credit terms, while collecting payments from customers after a credit period.

General Corporate Purposes: The remaining balance of the net proceeds, around ₹9 Crores will be used for general corporate purposes, which may include strategic initiatives, brand building, and meeting ongoing corporate exigencies.

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Here is the summarised equity research analysis for Global Ocean Logistics India Ltd. based on the LMVT framework:

Leadership: The company is led by promoters Mr. Niraj Narsaria (MD) and Mr. Anand Mehta (WTD), who both hold Commerce degrees and possess approximately 16 years of industry experience. The leadership team is strengthened by Mr. Satish B Singh (CFO), appointed in 2025 with over 14 years of experience, and a governance structure ensuring regulatory compliance.

Moat: Global Ocean operates a scalable asset-light model, leveraging a network of over 20,000 agents and 263 global ports instead of owning heavy fleets. While this minimises CapEx and maintenance costs, the competitive moat is narrow due to low entry barriers and a lack of long-term contracts. The business is heavily reliant on third-party carriers, leaving it vulnerable to freight availability and pricing volatility.

Valuation: The IPO appears fully priced with a P/E of 12.4x, which is higher than better-performing peers like SJ Logistics (8.92x). While FY2025 revenue recovered to ₹190.55 Cr, profitability remains thin with a PAT margin of ~3.5%. However, the company offers a cleaner balance sheet than its competitors, boasting a low Debt/Equity ratio of 0.19x, providing financial stability despite the low margins.

Tailwinds: The company is positioned to capitalise on the Indian logistics sector's projected growth to $159.54 Bn by FY28 (CAGR 8–9%). Key drivers include the National Logistics Policy, the 96% completion of Dedicated Freight Corridors, and port privatisation, all of which enhance the efficiency of multi-modal transport and boost demand for 3PL services.

Bottom line: Global Ocean Logistics offers a low-debt entry into the growing logistics sector but faces significant operational stagnation. The asset-light model has not yielded pricing power, evidenced by Revenue per shipment falling to 1.86 (Sep '25) from 2.65 (FY23) and Revenue per container remaining low at ~0.56. Combined with negative operating cash flows in H1 FY25, this issue is best suited for investors who prioritise balance sheet safety over immediate margin expansion or cash generation.

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