Analysts/Institutional Investor Meet/Con. Call Updates

Corporate Office: Giriraj Annexe Circuit House Road HUBBALLI- 580 029 Karnataka State Phone : 0836- 2237511 Fax : 0836 2256612 e-mail : headoffice@vrllogistics.com BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, Plot No. C/1, G-Block, Dalal Street Bandra – Kurla Complex, Bandra (E), Mumbai- 400 001 Mumbai – 400 051 Scrip Code: - 539118 Scrip Code: - VRLLOG Dear Sir / Madam, Sub: Disclosure under Regulation 30 (6) of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 – Transcript of the Earnings Call In terms of Regulation 30 of the SEBI (Listing Obligation and Disclosure Requirement), Regulations 2015, we herewith attach transcript of the earning call held on 5th November 2026. This information is also available on Company’s website on below link: https://www.vrlgroup.in/Resources/InvestorsDesk/Investors%20Con-Calls You are requested to kindly take note of the same. For VRL LOGISTICS LIMITED ANIRUDDHA PHADNAVIS COMPANY SECRETARY & COMPLIANCE OFFICER Place: Hubballi Date: 07.11.2026 Corporate Office: Giriraj Annexe, Circuit House Road, HUBBALLI- 580 029 Karnataka Phone: 0836 2237511 Fax: 0836- 2256612 e-mail: headoffice@vrllogistics.com Customer Care: HUBBALLI 0836- 2307800e-mail: customercare@vrllogistics.com Website: www.vrllogistics.comCIN: L60210KA1983PLC005247GSTIN (KAR): 29AABCV3609C1ZJ “VRL Logistics Limited Q2 FY27 Earnings Conference Call” November 05, 2026 MODERATOR: MR. SUNIL NALAVADI – CHIEF FINANCIAL OFFICER – VRL LOGISTICS LIMITED MODERATOR: MS. ALOK DEORA – MOTILAL OSWAL Page 1 of 14 VRL Logistics Limited November 05, 2026 Moderator: Ladies and gentlemen, good day and welcome to VRL Logistics Q2 FY27 Earnings Conference Call hosted by Motilal Oswal Financial Services Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Alok Deora from Motilal Oswal. Thank you and over to you, sir. Alok Deora: Thank you. Good morning, everyone and welcome to the 2Q FY27 earnings call of VRL Logistics. So from the management side, we have Mr. Sunil Nalavadi, the CFO of the company. I will now hand over the call to Mr. Nalavadi for his opening comments and then we can take up the Q&A. Thank you and over to you, sir. Sunil Nalavadi: Thank you, Alok Deora. Good morning to all the participants. I am Sunil Nalavadi, CFO of VRL Logistics. I warmly welcome you all to VRL Logistics Q2 and half-year FY27 earnings conference call. Thank you for taking the time to join us today. Our financial results and investor presentations of the quarter and half-year ended September 2026 have been uploaded to the stock exchanges and are also available on our company website. The first half of FY27 has been particularly encouraging and marks a robust new beginning for VRL Logistics Limited, with strong profitable growth, significant margin expansion, improved cash generation and balance sheet strengthening. We have witnessed a meaningful improvement in our operating and financial performance, supported by the benefits of our earlier freight rate hikes and rationalization initiatives, strong customer engagement, improved network penetration and continued emphasis on operational efficiency. I am also pleased to share that the company has delivered a strong performance during quarter two of FY27, with significant improvement across total income, EBITDA and profitability. More importantly, this performance reflects an improvement in the quality of our earnings, with higher freight realizations, better cost absorption and stronger operating leverage contributing to our expanding margins. Let me begin with our financial performance for the quarter on a year-on-year basis. Our total income for the quarter two is increased by approximately 20% year-on-year to INR967 crores, compared with INR804 crores in the corresponding quarter of the previous year. This growth was primarily supported by an approximately 11% increase in goods transport volumes from 976000 tons to 1,079,000 tons, along with a 9% improvement in freight realization per ton from INR8,079 to INR8,840. The improvement in realization reflects the positive impact of our freight rate hike and rationalization initiatives. Our continued focus on securing remunerative business and maintaining pricing discipline has enabled us to improve revenue quality while retaining and expanding our customer base. Our EBITDA for the quarter increased to INR226 crores from INR158 crores in quarter two, registering an impressive growth of 43%. Page 2 of 14 VRL Logistics Limited November 05, 2026 Correspondingly, the EBITDA margin expanded to 23.3% from 19.7% in the corresponding quarter last year, an improvement of 367 basis points. Profit after tax also witnessed a substantial improvement, increasing to INR103 crores from INR50 crores, representing growth of approximately 106%. The PAT margin improved significantly to 10.7% from 6.2%. Also here, I would like to mention that the quarter PAT is more than the last year half year profit. The operating environment during this quarter remained challenging, particularly due to geopolitical developments, crude oil price volatility and the resulting increase in fuel procurement cost. Fuel continues to be one of our major operating expenses during the period. The cost per litre increased significantly from approximately INR 85- INR 97, putting pressure on our operating cost structure. The increase also affected the benefits we traditionally derive from bulk fuel procurement. However, through timely and calibrated freight rate adjustments, we were able to pass on a substantial part of these cost increases to our customers while maintaining healthy volume growth. At the same time, our continued focus on cost management and operating leverage helped us to contain the impact of inflation across most of the operating expenses, including employee costs. Employee costs declined from 18% to 16.48% of total income, in spite of increase in absolute terms from INR147 crores to INR159 crores. Administrative expenses declined from 2.28% to 1.43%, largely reflecting lower legal and professional expenses incurred in the last year. Other operating expenses also declined from 10.48% to 10.06% and we also maintained better control over toll and hamali expenses as a proportion of income, notwithstanding the increase in toll plaza, higher toll rates effective from April 1 and increased transportation volumes as well. There were some moderate increase in vehicle running expenses, primarily associated with higher driver incentives, along with modest increase in driver salaries. Overall, these improvements in expenses ratio demonstrate our ability to manage costs effectively, improve asset utilization and protect operating margins in a challenging cost environment. On the business front, our primary focus continues to be the expansion of our goods transportation business through a wider branch network and deeper penetration into existing and new markets. During this quarter, we added 51 branches, taking the total number of new branches added during the first half to 67 numbers. This expansion has strengthened our geographical reach and enabled us to access new customer segments and business opportunities. We have also seen encouraging traction in customer acquisition alongside onboarding new customers. We have successfully regained business and tonnage from certain customers who had earlier discontinued services following our freight rate rationalization and strategic withdrawal from low-margin contracts. This is an important development because it demonstrates that our disciplined pricing approach, along with unm [Showing first 8,000 characters — download PDF for full document]