Road transport operators will see revenue growth this year

27 May 2024 CW Team

According to a Crisil Ratings assessment, revenue growth for road transport fleet operators is anticipated to increase to 9?11% in the current fiscal year 2024?2025. Notwithstanding weak exports, the rating agency's projections are predicated on stronger domestic demand. A higher operating profit is observed due to improved fleet utilisation and stable fuel prices.

Operators' credit profile should also be robust, even if next year will see the implementation of new regulations requiring air-conditioned driver cabins. After three years of significant expansions, operators may choose to scale down on capital expenditure expenditures towards expansion.

According to reports, truck driver cabin air conditioning systems will soon need to be installed by automakers; the implementation is scheduled to start in 2025.

Fleet increases would be limited to 15% of the current fleet size this fiscal year, on a much enlarged base, with the focus now being on the consolidation of operations. Furthermore, should operators choose to modify older cars, the Ministry of Road Transport and Highways' rule requiring air-conditioned cabins for drivers starting in October 2025 would result in nominal capital expenditures.

Furthermore, export-oriented industries account for about a third of the freight demand; these sectors are improving this year after slowing down the previous year, in accordance with economic patterns in the US and the eurozone, India's two main export markets.

Crisil expects growth in volume this year to be driven by freight-intensive domestic sectors, such as mining, industrial, manufacturing, infrastructure and engineering goods. With some of the costs remaining steady, the operating margins of operators are expected to improve to 9.0-9.5 % this year.

Real Estate

07 Jul 2026

Isprava Partners Courtside to Launch Luxury Padel Experience

Luxury home developer Isprava has partnered with Courtside, Mumbai's first padel social club, to launch The Isprava Court, integrating its design-led lifestyle proposition with one of the city's emerging sporting destinations.Located on the rooftop of Atria Mall in Worli, Courtside spans 20,000 sq ft and combines padel, wellness, hospitality and community experiences. Since opening in February 2026, the venue has positioned itself as a social hub for sports and lifestyle enthusiasts.The Isprava Court features curated brand elements, including bespoke court branding, branded nets, towels and ac..

Kellton Tech, AEC Form JV to Drive GCC Energy Digitalisation

Kellton Tech EU, a wholly owned subsidiary of Kellton Tech Solutions, has formed a strategic joint venture (JV) with Kuwait-based Action Energy Company (AEC) to accelerate AI-led digital transformation across the Gulf Cooperation Council (GCC) energy sector.Under the agreement, AEC will hold a 51 per cent stake in the JV, while Kellton Tech EU will own the remaining 49 per cent. The venture has been established for an initial five-year term and will focus on delivering digital oilfield solutions, enterprise software, cloud computing, cybersecurity, enterprise resource planning (ERP), systems i..

Plant & Equipment Secures Funding to Expand Auction Business

Plant & Equipment (P&E), a global heavy equipment marketplace, has secured asset-backed financing to accelerate the growth of P&E Auctions, its auction business serving buyers and sellers across the Middle East, Africa and other international markets.The investment will be used to acquire physically inspected construction equipment, lifting machinery and commercial vehicles, enabling the company to provide minimum guarantees on assets sold through its auction platform.Launched in December 2023, P&E Auctions has expanded rapidly following the success of the company's online mark..