Sical Logistics jumps over 3% after securing ₹39.23 Cr mining order from SAIL
The Chennai-based integrated logistics company, a Pristine Group entity, has picked up a fresh order from a leading public sector steel major, adding iron ore handling to a mining portfolio that has so far leaned heavily on coal. The contract stretches over roughly two years, and it arrives just after a quarter in which the company returned to profit and lined up fresh bank funding. Here is what the order means for its next phase of growth.
Shares of Sical Logistics Ltd are trading at Rs. 90.00, up 3.35 percent on Monday. The stock touched the intraday high of Rs. 91.40 after opening at Rs. 87.77 before slipping to a low of Rs. 87.20. The company commands a market capitalization of Rs. 718.06 crore.
Contract runs from October 2026 to November 2028 at SAIL's Dalli mine
Sical Logistics Limited has received an award letter, dated October 3, 2026, from Steel Authority of India Limited (SAIL). The work covers excavating and transporting iron ore, ICW and subgrade ore from the Dalli Mech. Mine, phase 6. It will run from October 5, 2026, to November 18, 2028, and the contract is worth Rs. 39.23 crore, excluding GST. The company shared the news with BSE and NSE on October 4 under Regulation 30. It added that the order is from a domestic customer, that its promoters hold no interest in SAIL, and that the deal is not a related party transaction.
A small order by size, but a useful one for the mix
Spread over roughly 25 months, the contract works out to about Rs. 18.5 crore a year. That is around 11 percent of the Rs. 164.8 crore the mining logistics business earned in FY26, and only about 1 percent of the company's Rs. 3,800 crore-plus order book. So the order will not change the company's size overnight. Its value lies elsewhere. Sical's marquee mining projects, such as Nigahi and Amlohri, are coal-linked, and this order brings in a new commodity and a new customer in SAIL.
The timing matters because mining margins were under strain in the June quarter. Mining logistics EBITDA margin slipped to 18.8 percent from 23.5 percent a year earlier, as higher fuel costs and operational disruptions weighed on it. The disclosure does not say whether diesel costs can be passed on in this contract, so how much it adds to profit will depend on the terms and on execution. The board has also approved a Rs. 50 crore equipment loan from ICICI Bank and a Rs. 100 crore lease from Bajaj Finance. The company has not tied either facility to this order, but fresh equipment funding would help it take on new mining work.
Financial Performance
Looking at the quarterly results of Sical Logistics Limited, the company's consolidated revenue from operations increased by 35.9 percent YoY, from Rs. 97.54 crore in Q1 FY26 to Rs. 132.58 crore in Q1 FY27, and grew by 26.1 percent QoQ from Rs. 105.17 crore in Q4 FY26.
Sical Logistics Limited generated 53.5 percent of its revenue from mining logistics, 33.5 percent from terminals and 13.0 percent from warehousing and 3PL in Q1 FY27.
In Q1 FY27, the company's consolidated net profit stood at Rs. 21.24 crore, compared with a net loss of Rs. 2.99 crore during the same period last year. As compared to Q4 FY26, when it reported a net loss of Rs. 8.78 crore, the company has moved into profit. A percentage change is not meaningful here because both earlier periods were losses. The quarter's profit includes an exceptional gain of Rs. 17.40 crore from the sale of land and a building at Madhavaram, Chennai. Before that item, profit before tax was Rs. 5.07 crore, against a loss of Rs. 0.11 crore a year ago.
The basic earnings per share stood at Rs. 2.86 as against a loss of Rs. 0.46 recorded in the same quarter of the previous year, FY2026. In Q4 FY26, the company had reported a basic loss per share of Rs. 1.42.
Rising coal output and policy support keep mining logistics in demand
India's coal production crossed the one billion tonne mark in FY25 at about 1,047.6 million tonnes. Demand from cement, infrastructure and housing is expected to keep output rising. As mines grow, so does the amount of overburden that has to be removed, and the company's investor presentation, citing industry reports, projects this at 16.6 billion cubic metres in FY25-29, up from 11 billion in FY20-24. Government policy is also helping. The National Logistics Policy aims to bring logistics costs down to 8 percent of GDP by 2030, and the push for more rail freight favours integrated players. Fuel prices and geopolitical tension remain the main risk, as the recent quarter showed.
Company Overview
Sical Logistics Limited is a Chennai-based integrated logistics company founded in 1955 and part of the Pristine Group since January 2023. It runs mining logistics, including overburden removal, container freight stations at Chennai, Tuticorin and Visakhapatnam, a private rail-linked logistics park near Chennai, and warehousing and third-party logistics services. FY26 consolidated revenue stood at Rs. 385.7 crore, up 74 percent.