For fleet operators, revenue growth to double to 9-11% in FY25: Report
CRISIL Ratings predicts that road transport fleet operators' revenue growth will double to 9-11 per cent this fiscal, driven by better domestic demand and tepid exports. Operating margins are expected to improve 75-100 basis points due to better fleet utilization and steady fuel costs. Operators may moderate capital expenditure for fleet expansion, following strong additions in the past three fiscal years.
It further said operating margin is seen improving 75-100 basis points on better fleet utilisation and steady fuel costs . According to the rating agency, the credit profile of operators should remain strong as well, as they may look to moderate capital expenditure (capex) towards fleet expansion, following strong additions in the past three fiscal years, as new guidelines for air-conditioned driver cabins kick in the next fiscal year.
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"With focus now on consolidation of operations, fleet additions would moderate to 15 per cent of the existing fleet size this fiscal, on a significantly expanded base," it said.
CRISIL Ratings said the Ministry of Road Transport and Highways mandate of air conditioned cabins for drivers from October 2025, would lead to nominal capex, if operators decide to retrofit older vehicles.
