Decoding India's Logistics Sector: A Data-Driven Investment Outlook

India's logistics sector is experiencing unprecedented growth, fueled by robust economic expansion, evolving consumer behaviors, and strategic government policies. For sophisticated investors seeking a definitive edge, understanding the underlying drivers and identifying promising opportunities within this dynamic landscape is paramount. At PortoAI, we leverage advanced analytics to synthesize market signals, empowering you to make confident, data-backed investment decisions.

Key Indicators of Sectoral Momentum

The sector's vitality is underscored by several critical metrics:

• Record E-way Bills: October 2025 saw a landmark 117.25 million e-way bills generated, representing a significant 17% year-on-year increase, largely attributed to heightened festival season demand. This surge directly reflects increased commercial activity and the seamless movement of goods.
• Warehousing Demand Surge: JLL India projects that the demand for warehousing space will reach an impressive 1.2 billion square feet by 2027. Colliers reports that leasing activity in the Industrial & Warehousing sector reached 20.2 million sq. ft. in the first nine months of 2025, a 17% rise year-on-year.
• Capital Inflows: The warehousing sector attracted substantial investment, with Q2 2025 seeing $2.5 billion in funding, accounting for 61% of total capital inflows – a three-year high. This indicates strong investor confidence in the sector's future.

The Economic Significance of Logistics in India

A well-functioning logistics network is the backbone of a thriving economy. The Indian logistics sector is a major employer, currently providing jobs to approximately 22 million people, with projections to create an additional 10 million by 2027.

• Market Valuation and Growth: The Indian logistics market, valued at $107 billion in FY23, is forecasted to expand to $160 billion by FY28, demonstrating a compound annual growth rate (CAGR) of 8-9%, according to brokerage reports.
• Dominant Transportation Modes: Road transportation remains the primary mode, accounting for 66% of the total cargo volume. Railways follow at 31%, with shipping and air cargo representing 3% and 1%, respectively (Source: Delhivery FY24 Annual Report).

Policy Framework: Driving Efficiency and Competitiveness

The National Logistics Policy (2022) is a pivotal initiative designed to transform India's supply chain management and position it as a global leader. Key objectives include:

• Infrastructure Development: Creating an integrated multimodal logistics network (road, rail, waterways, air) through initiatives like Dedicated Freight Corridors, Bharatmala, Sagarmala, and UDAN. This aims to reduce transit times and enhance connectivity.
• Optimizing Logistics Costs: The policy targets reducing India's logistics cost as a percentage of GDP from the current 13-14% to 7-8%, aligning it with global benchmarks. This reduction is crucial for enhancing economic competitiveness.
• Improving Logistics Performance: Striving for a top 25 ranking in the Logistics Performance Index by enhancing customs efficiency, infrastructure quality, shipment handling, and tracking capabilities.

Analyzing Promising Logistics Stocks

Amidst this positive sector outlook, rigorous analysis is key to identifying undervalued or high-potential companies. While market leaders garner significant attention, exploring lesser-known entities can reveal unique opportunities. PortoAI's platform assists in this deep-dive analysis by synthesizing financial statements, market data, and news sentiment.

SJ Logistics

SJ Logistics is demonstrating robust financial performance, with significant year-on-year growth in revenue, EBITDA, and PAT. The increase in EBITDA margins highlights improving operational efficiency.

Metric	H1 FY24	H1 FY25	Change
Revenue	103	225	▲ 118%
EBITDA	13	32	▲ 142%
EBITDA Margins	12.73%	14.14%	-
PAT	9	23	▲ 151%

Tiger Logistics

Tiger Logistics also exhibits strong top-line growth. While EBITDA margins have seen a slight dip, the substantial increase in PAT indicates effective cost management or other value-generating activities.

Metric	H1 FY24	H1 FY25	Change
Revenue	96	261	▲ 273%
EBITDA	7	14	▲ 211%
EBITDA Margins	6.9%	5.3%	-
PAT	5	12	▲ 229%

Conclusion: Navigating Future Growth with Data

India's logistics sector presents a compelling investment thesis driven by economic expansion, policy support, and increasing demand. By leveraging data-driven insights, as facilitated by the PortoAI platform, investors can effectively navigate this complex market, identify key growth drivers, and capitalize on emerging opportunities with confidence and discipline.