In a significant financial development, Sical Logistics Limited (NSE: SICALLOG) has secured a structured credit facility worth ₹115 crore from Axis Bank Limited, approved by the company's board of directors during a meeting held on May 23, 2026. The deal represents a major step in the integrated logistics provider's ongoing efforts to strengthen its balance sheet, reduce legacy debt, and fund day-to-day operational requirements.
Structure of the ₹115 Crore Credit Package
The financial support is structured across three distinct facilities to address various operational and refinancing needs. The package includes ₹15 crore in cash credit, ₹15 crore in bank guarantees, and an ₹85 crore term loan for refinancing. Detailed agreements will be disclosed post-execution.
Breaking this down further: the ₹15 crore cash credit facility provides working capital liquidity to support Sical Logistics' day-to-day operational requirements — including port handling, bulk cargo management, and multimodal logistics services. The ₹15 crore bank guarantee facility enables the company to meet contractual and tender commitments with key clients, particularly in government and infrastructure-linked contracts. The ₹85 crore term loan, by far the largest component, is specifically earmarked for debt refinancing — allowing the company to restructure higher-cost or near-maturity debt obligations and optimise its overall interest cost structure.
Context: Sical's Ongoing Financial Turnaround
The Axis Bank facility is the latest in a series of strategic financial moves that signal Sical Logistics' ongoing recovery and capital restructuring journey. The company — which is part of the Coffee Day group and operates across port logistics, bulk cargo handling, rail transport, and warehousing — had faced significant debt stress in earlier years.
Over the past year, the company has taken several proactive steps to restore financial health. In March 2026, Sical Logistics announced a significant debt reduction initiative through the partial repayment of ₹70 crore against its existing rupee term loan facility from Aditya Birla Capital Limited and other lenders. The repayment was part of Sical Logistics' broader strategy to optimise its capital structure, with the reduction in outstanding debt expected to lower finance costs and directly improve the company's profitability metrics.
Additionally, the company successfully completed its rights issue process with the allotment of 1,45,35,790 rights equity shares at ₹64 per share — a transaction that increased Sical Logistics' paid-up equity share capital by approximately 22.29%. The proceeds from the rights issue, worth approximately ₹93 crore, were utilised primarily for borrowing repayments and general corporate purposes — confirmed by monitoring agency Brickwork Ratings India Private Limited.
What This Deal Signals for Investors
Securing a structured ₹115 crore credit package from Axis Bank — one of India's largest private sector lenders — is a positive signal for Sical Logistics investors for several reasons. First, it demonstrates that a reputable bank is willing to extend significant credit — including an 85-crore refinancing term loan — indicating improved confidence in the company's credit profile relative to its peak distress period. Second, the refinancing component is likely to reduce the blended cost of debt, which could meaningfully improve interest coverage ratios and net profitability in FY27.
The company's board is also scheduled to meet on May 29, 2026 to review both standalone and consolidated financial statements for the quarter and financial year ended March 31, 2026 — meaning investors will soon have full visibility into how FY26 financials have shaped up alongside this new credit facility disclosure.
For broader context on India's logistics sector growth trajectory and the regulatory framework governing listed logistics companies, the Securities and Exchange Board of India (SEBI) circulars page provides up-to-date disclosure requirements and corporate governance standards that companies like Sical Logistics are required to comply with.
About Sical Logistics Limited
Sical Logistics is one of India's integrated logistics service providers with operations spanning port and bulk cargo handling, multimodal rail transport (through its subsidiary SMART — Sical Multimodal and Rail Transport Limited), inland container depots, and third-party warehousing. The company serves key sectors including energy, infrastructure, steel, cement, and agri-commodities. With the Indian logistics sector expected to grow significantly on the back of government infrastructure spending and the National Logistics Policy, Sical's ongoing financial stabilisation positions it to capitalise on long-term sector tailwinds.