**GB Logistics Commerce Limited** (formerly GB Logistics Private Limited) is a diversified Indian logistics and commodity trading enterprise. The company provides end-to-end cargo movement solutions and agricultural trading services, primarily serving Large and Medium Enterprises (SMEs) and agro-processors. Following its successful listing on the **BSE SME Platform** on **January 31, 2025**, the company is currently transitioning from an asset-light model to an integrated, asset-heavy logistics provider. --- ### **Core Business Verticals & Service Architecture** The company operates through two primary reportable segments, managed from a centralized geographical hub to ensure operational synergy. #### **1. Integrated Logistics Services** GB Logistics specializes in **Full Truckload (FTL)** freight services with a **pan-India reach**. Its service model utilizes a strategic mix of proprietary fleet and third-party transportation providers. * **Fleet Capabilities:** The fleet includes light, medium, and heavy-duty trucks, closed-body vehicles, and specialized trailers. * **Specialized Offerings:** Beyond standard FTL, the company provides high-value services including: * Specialized cargo handling and go-down-to-go-down transit. * Last-mile delivery solutions (including delivery above ground floor). * Handling of shipments in "Out-of-Delivery" areas (ODA). * **Industrial Focus:** Recent contract wins demonstrate a pivot toward high-capacity industrial logistics, utilizing **40x7x7 feet trailers** with **22MT capacity** for structural and power sector projects. #### **2. Agricultural Commodity Trading** The company engages in the trading of agricultural goods, a segment designed to capitalize on logistics efficiencies. * **Integration Strategy:** The trading arm focuses on **backward and forward integration**, utilizing the company’s own transport network to reduce procurement costs and improve margins. * **Digital Evolution:** The company is currently **digitizing agri-trading** operations to facilitate direct farm-gate sourcing, bypassing traditional intermediaries. --- ### **Strategic Pivot: Transition to Asset-Heavy Model** A defining element of the company’s current strategy is the aggressive deployment of **SME IPO proceeds** to build a robust physical asset base, reducing reliance on third-party vendors and enhancing operational autonomy. * **Fleet Expansion:** In February 2025, the company invested **₹3.80 Crores** to acquire **8 Prime Movers (AL U4020)** and **40-Feet Flat Bed 2-Axel Trailers**. These are specifically deployed for **Import/Export movements** between **JNPT, Baroda, and Ahmedabad**. * **Infrastructure & Warehousing:** A major capital expenditure of **₹7.21 Crores** is planned for January 2026 to acquire a **plot and warehouse in Katol, Nagpur**. This facility is intended to serve as an automated hub for warehousing and dispatch. * **Network Scaling:** To support its pan-India ambitions, the company opened **15 new branch offices** in June 2025, aimed at consolidating its client base in previously untapped regions. * **Multimodal Diversification:** Management is exploring **inland multimodal logistics** to offer a broader range of transit options beyond traditional road transport. --- ### **Financial Performance & Capital Structure** The company has demonstrated stable revenue growth while undergoing significant capital restructuring. The **IPO** involved the allotment of **24,57,600 equity shares** at a premium of **₹92 per share**. #### **Comparative Financial Summary** | Particulars (Standalone) | FY 2024-25 (₹ in lakhs) | FY 2023-24 (₹ in lakhs) | | :--- | :---: | :---: | | **Income from Operations** | **6,505.47** | **6,445.73** | | **Total Expenses** | **6,022.21** | **5,944.90** | | **Profit Before Tax (PBT)** | **483.26** | **500.82** | | **Tax Expense** | **122.71** | **140.45** | | **Earnings Per Share (EPS)** | **₹80.02*** | **₹7.17** | *\*Note: FY 2024-25 EPS reflects the impact of IPO-related capital restructuring and share dilution.* #### **Enhanced Financial Capacity** To facilitate large-scale industrial contracts, the board has approved significant increases in financial limits: * **Overall Borrowing Limit:** Increased to **₹150 Crores**. * **Investment/Loan Limit (u/s 186):** Increased to **₹150 Crores**. --- ### **Major Contract Wins (2025)** The company has recently secured high-value work orders that significantly expand its operational footprint in the mining and energy sectors: | Client / Project | Date | Value | Scope of Work | | :--- | :--- | :--- | :--- | | **SECL (via Adas Mining)** | July 2025 | **₹107 Crores** | Loading and transportation at Chhal Open Cast Project, Raigarh. | | **Rishikesh Structural Solutions** | Feb 2025 | **₹4.95 Crores** | Erection and job work at Adani Power Limited, Raigarh. | | **Okaya Power Private Ltd** | Feb 2025 | **Agreement** | Long-term Transporter Agreement for product logistics. | --- ### **Corporate Structure & Governance** * **Subsidiaries:** The company holds a **Wholly Owned Subsidiary**, **GB Hospitality (India) Private Limited**, which mirrors the parent's line of business. It also maintains a financial relationship with **Norbexi Industries**. * **Governance Post-Listing:** Following the BSE SME listing, the company has professionalized its board by constituting an **Audit Committee**, **Nomination & Remuneration Committee**, and **Stakeholders Relationship Committee**. * **Operational Oversight:** The company utilizes a **cloud-based ERP system** for real-time fleet tracking and risk management. --- ### **Risk Factors & Compliance Monitoring** Investors should note several operational and regulatory challenges identified in recent audits: * **Statutory Arrears:** The company has faced challenges in the timely deposit of undisputed statutory dues, including **GST, PF, ESI, and Income Tax**. * **Advance Tax Arrears:** **₹46.38 Lakhs** (FY 23-24) and **₹81.86 Lakhs** (FY 24-25) remained outstanding for over six months. * **Related Party Transactions:** * The proposed **Nagpur warehouse acquisition** is a related party transaction requiring independent valuation and shareholder approval. * Auditors previously noted that loan terms granted to **Norbexi Industries** (**₹1,168.52 Lakhs** outstanding) were potentially **prejudicial to the company’s interest**. * **Operational Volatility:** The business remains sensitive to **fuel price fluctuations**, **driver shortages**, and **seasonal weather patterns** affecting agricultural volumes. * **Execution Risk:** The transition to an asset-heavy model requires disciplined deployment of **IPO proceeds** and successful management of a significantly larger owned fleet.