LEAP India FY26 profit up 66% to Rs 62 crore, IPO next
Pallet pooling firm LEAP India lifted FY26 net profit 65.7% to Rs 62.3 crore on revenue of Rs 729.5 crore, days before a Rs 2,480 crore public issue opens.
- FY26 net profit rose 65.7% to Rs 62.3 crore from Rs 37.6 crore, on operating revenue up 56.4% to Rs 729.5 crore.
- EBITDA grew 38.3% to Rs 378.8 crore, while total expenses rose 54% to Rs 666.5 crore.
- The IPO is sized at Rs 2,480 crore, split into a Rs 480 crore fresh issue and a Rs 2,000 crore offer for sale, at Rs 151 to Rs 159 a share.
- LEAP serves over 1,000 customers including Coca-Cola, Marico, Panasonic, Haier and Daikin, with food and beverages over 25% of the business.
LEAP India reported a net profit of Rs 62.3 crore in FY26, up 65.7% from Rs 37.6 crore in FY25. Operating revenue rose 56.4% to Rs 729.5 crore from Rs 466.5 crore. Total income, including Rs 17.8 crore of other income, was Rs 747.4 crore.
Services revenue, the core pallet pooling line, grew 52.6% to Rs 681.5 crore. Product revenue nearly tripled to Rs 35.2 crore from Rs 11.9 crore. Total expenses rose 54% to Rs 666.5 crore. Employee costs were Rs 128.3 crore, up 43.2% from Rs 89.6 crore. Freight and transportation doubled to Rs 77.2 crore from Rs 38.6 crore. Repairs and maintenance rose 48.5% to Rs 39.8 crore. EBITDA was Rs 378.8 crore, up 38.3% from Rs 273.8 crore. The company acquired CHEP India for Rs 77.58 crore during the year.
The IPO is sized at Rs 2,480 crore, with a fresh issue of Rs 480 crore and an offer for sale of Rs 2,000 crore. The price band is Rs 151 to Rs 159 per share. The anchor book opens on 6 August and the public issue runs from 7 to 11 August. LEAP serves over 1,000 customers, including Coca-Cola, Marico, Panasonic, Haier and Daikin, with food and beverages contributing over 25% of the business.
Look at the gap between Rs 378.8 crore of EBITDA and Rs 62.3 crore of net profit. That is what an asset-heavy rental business looks like once depreciation and interest are paid. It is also the reason pooling exists at all: LEAP carries the capital cost of the pallet so its customers do not have to. Any brand that has debated buying its own crates and pallets is staring at the same arithmetic from the other side.
The line worth watching is freight. It doubled while revenue grew 56%, which means moving empty pallets back to where they are needed is getting expensive faster than the rental itself. That cost gets passed on. If you are a D2C brand adding regional warehouses and dark stores, every new node scatters your returnable assets further and lifts your per-trip handling cost. The CHEP India purchase also thins the vendor list. Fewer poolers means less room to push on rates at the next renewal.
Zane’s analysis draws on original reporting by Inc42. Read the original report.