Meridian Logistics Ltd.
Asset-light contract logistics with a warehousing arm that is finally covering its cost of capital.
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The issue
- Price band
- ₹468 – ₹492
- Lot size
- 30 shares
- Minimum
- ₹14,760
- Opens
- 18 Sep 2026
- Closes
- 22 Sep 2026
- Listing
- 25 Sep 2026 (tentative)
- Total size
- ₹1,840 crore
- Fresh issue
- ₹1,100 crore
- Offer for sale
- ₹740 crore
- Type
- Book built · Mainboard
₹740 crore of this issue is an offer for sale — that money goes to selling shareholders, not into the company.
What the business does
Meridian runs contract logistics for consumer and auto customers — warehousing, in-plant handling and line-haul under multi-year contracts rather than spot freight. About 78% of revenue sits under contracts of three years or longer.
The warehousing arm operates 14.2 million sq ft, roughly two-thirds of it leased rather than owned, which keeps the balance sheet lighter than a pure infrastructure play but leaves it exposed to rental renewals.
Three years of numbers
| ₹ crore unless stated | FY24 | FY25 | FY26 |
|---|---|---|---|
| Revenue (₹ cr) | 4,182 | 5,061 | 6,247 |
| EBITDA (₹ cr) | 512 | 703 | 964 |
| EBITDA margin % | 12.2 | 13.9 | 15.4 |
| Net profit (₹ cr) | 168 | 271 | 421 |
| Return on capital % | 9.1 | 12.4 | 16.2 |
| Net debt / EBITDA | 2.4 | 1.7 | 0.9 |
What the fresh money is for
- ₹620 croreRepayment of borrowings
- ₹310 croreCapital expenditure on four new warehousing sites
- ₹170 croreGeneral corporate purposes
What you are paying
31x FY26 earnings at the upper band, on a post-issue equity base
| Comparison | Multiple | Margin |
|---|---|---|
| Peer A — listed 3PL | 38x | 14.1% margin |
| Peer B — express logistics | 44x | 11.8% margin |
| Meridian at ₹492 | 31x | 15.4% margin |
Prices at a discount to both listed comparables on earnings, with the better margin of the three. The discount is doing the work here, not the growth rate.
What could go wrong
- Customer concentration: the top five customers are 44% of revenue, and the largest contract is up for renewal in FY28.
- Two-thirds of warehousing is leased. A rental reset cycle hits the margin directly and there is no long-term hedge against it.
- The offer-for-sale portion is 40% of the issue, so ₹740 crore of the money raised goes to selling shareholders rather than into the business.
- Return on capital has only just passed the cost of capital. One weak year takes it back below.
Our view
The business has crossed from cash-consuming to cash-generating and the debt has come down with it. At 31x FY26 earnings it prices below both listed comparables while earning a better margin than either.
The concentration risk is real and the lease exposure is the thing to watch, not the growth. For an investor with a three-year-plus horizon the discount compensates for both. For a listing-day trade it does not — that is a different decision and this note does not make it.
Research is issued by L. F. C. Securities Pvt. Ltd., a SEBI-registered Research Analyst (INH000028617). A view on a public issue is an opinion formed on the assumptions stated in the note, not a forecast, and no return is assured or guaranteed. We do not publish grey market premium: it is an unregulated off-market quote and SEBI has cautioned investors against relying on it. Where Labdhi or its associates have a banking, merchant-banking or advisory relationship with an issuer, or hold its securities, the note discloses it. Registration granted by SEBI, membership of BASL and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.