Kolkata-based public sector enterprise Balmer Lawrie & Co is set to significantly strengthen its rail logistics business, targeting annual revenues exceeding ₹200 crore from FY28 onwards, driven by a major long-term transportation contract secured from NMDC Steel.
The company, which currently operates three freight rakes for transporting steel coils for SAIL under Indian Railways’ Liberalised Special Freight Train Operators (LSFTO) scheme, has won a 10-year contract from NMDC Steel to deploy 12 additional rakes for cargo movement.
According to Chairman and Managing Director Adhip Nath Palchaudhuri, the rakes will be introduced in a phased manner beginning in the second half of the current financial year, with full deployment expected during FY27. The contract is projected to generate revenues exceeding ₹2,000 crore over its tenure, providing strong long-term business visibility for the company.
Palchaudhuri noted that the NMDC Steel order represents one of the largest revenue-generating contracts in Balmer Lawrie’s history. With each rake capable of generating approximately ₹20–25 crore in revenue depending on operating distances, the company expects the rail logistics segment to emerge as a major growth driver in the coming years.
To further enhance profitability, Balmer Lawrie is also evaluating plans to acquire its own freight rakes instead of relying solely on leased assets.
Beyond rail logistics, the company continues to expand its third-party logistics (3PL) network. Its flagship logistics hub at Dankuni in West Bengal, spanning around 1.5 lakh square feet, is currently 70–80 per cent operational. Additional spoke facilities are planned at Siliguri, Guwahati, and either Cuttack or Bhubaneswar, with at least one new facility expected to become operational during FY27.
Logistics remains a key contributor to the company’s performance. In FY26, the logistics segment generated revenue of approximately ₹810 crore and profit of nearly ₹90 crore. The Travel & Vacations division reported revenue of ₹378 crore and profit exceeding ₹70 crore during the same period.
For FY26, Balmer Lawrie reported standalone revenue from operations of ₹2,699.27 crore, marking an 8.21 per cent year-on-year increase, while net profit rose 5.53 per cent to ₹245.68 crore. The company’s diversified portfolio includes logistics, travel and vacations, greases and lubricants, industrial packaging, and chemicals.
