Toll Booths To Subscriptions: How FASTag, Fuel Payments Power BlackBuck’s Revenue Model

BlackBuck (formerly Zinka Logistics) operates at the intersection of technology and India’s fragmented trucking industry. Millions of small truck operators operate across the country, most owning two to five vehicles. The sector has remained informal, cash-driven and underserved. BlackBuck was set up to address these gaps.

BlackBuck has built an omnichannel network across India with more than 9,300 physical touchpoints, supported by a multilingual app. This hybrid approach reduces onboarding friction for first-time digital users and improves penetration among small fleet operators.

BlackBuck offers a full-stack digital ecosystem that enables truckers to manage operations. Services include toll and fuel payments, fleet monitoring through telematics, freight discovery and financing for used vehicles. Of 35 lakh truck operators in India, more than one million transacted on the BlackBuck platform in FY25.

This integration across the trucking ecosystem has positioned BlackBuck as a market leader with a 30% market share. The company does not own trucks or hold inventory. It operates an asset-light, digital-first model with low incremental service costs, which supports operating leverage.

BlackBuck margins reflect this model. Contribution margin has stayed above 90%, reaching 92% in FY25. As volumes rise, these margins support growth without additional fixed costs.

BlackBuck’s revenue model is diversified. It earns commission income from partners for distribution and service management for truck operators. It also charges truck operators a subscription fee, monthly or annually, for regular services, and a one-time service fee based on platform usage.

This structure provides a predictable, recurring revenue base. Payments and telematics are the core revenue drivers, contributing 82.8% (Rs 123.4 crore) of total revenue of Rs 149 crore in Q2FY26. This segment contributes more than 100% of profitability, as newer verticals remain in the investment phase.

The payments segment includes tolling through FASTag and cashless fuelling solutions linked to daily trucking activity. BlackBuck is India’s largest FASTag distributor by gross transaction value. It processed 37% higher toll payments in FY25, with GTV reaching Rs 20,331 crore. This translates into a 45% share of total truck toll payments.

JM Financial estimates this share will reach about 50% by FY29. Rising market share can accelerate revenue growth, as tolling is a high-frequency use case that generates recurring revenue. Operating leverage under a high-margin model can also support profitability.

Cross-selling deepens growth without raising costs

Fuel payments deepen BlackBuck’s presence in the trucking ecosystem. The company provides cashless fuelling solutions in partnership with oil marketing companies. It earns subscription fees from truck drivers and commissions from OMCs based on monthly volume and value. In FY25, fuelling GTV stood at Rs 2,979 crore.

The business scales with minimal additional cost. It also benefits from network effects by cross-selling services. Once a truck operator signs up for FASTag, services such as telematics, fuelling or financing are offered without acquisition cost.

Currently, 47% of operators who transact monthly use two or more services. Telematics increases customer retention. The company provides vehicle tracking and fuel sensor solutions that offer real-time visibility, route monitoring and fuel efficiency data.

With an average of 420,902 monthly active telematics devices in FY25, this vertical generates recurring subscription revenue. The newly launched fuel sensor recorded about 55% sequential sales growth in Q2FY26. The company plans to expand its telematics suite and launch new offerings, including fuel payment and credit programmes.

The company reinvests core profits into growth businesses to scale operations.

Beyond its core services, BlackBuck is expanding into marketplace-led businesses to increase its share of the trucking value chain. Loads Marketplace connects truck operators with shippers through a digital freight platform. This improves vehicle utilisation, reduces idle time and addresses empty return trips.

The marketplace operates through classified-style load listings and Superloads, a freight brokerage service. More than 21 lakh loads were posted in FY24, rising to 31 lakh in FY25. BlackBuck earns revenue from subscriptions and commissions from shippers and operators, while keeping the model asset-light as volumes grow.

Revenue from growth businesses, including the marketplace and vehicle financing, rose 226% year on year to Rs 27.79 crore in Q2FY26. These segments have not yet reported profitability, but they increase platform engagement across the operator lifecycle and create future monetisation options.

Management plans to expand the Superloads business by adding 10 hubs over the next six months, taking the total to about 14–15. It plans to replicate operating models from hubs such as Bengaluru and Hyderabad in other regions.

The company has entered vehicle financing. BlackBuck targets operators buying used commercial vehicles and facilitates loans through partnerships with lenders and its wholly owned non-banking financial company.

This segment addresses a long-standing credit gap, as traditional lenders face challenges underwriting informal operators. BlackBuck uses proprietary data, including transaction history, to assess credit risk. As of FY25, the company had disbursed 6,153 loans.

Management plans to expand this segment gradually, with a focus on asset quality. User engagement underpins these efforts. Transacting customers spend an average of 43 minutes a day on the app. A larger operator base attracts banks, shippers and service partners, expanding available services and loads.

Operating leverage is visible in BlackBuck’s financials. Between FY23 and FY25, total payment GTV more than doubled to Rs 23,319 crore from Rs 12,194 crore. Payment transactions increased from 29.9 crore to 55.4 crore. Revenue more than doubled to Rs 462 crore from Rs 195 crore in FY23.

Growth came without margin dilution. Contribution margin improved to 92.7% in FY25 from 90.7%. As fixed costs were absorbed, adjusted EBITDA swung from a loss of Rs 232.2 crore to a profit of Rs 90.4 crore in FY25. Net losses narrowed to Rs 9 crore from Rs 297 crore two years earlier.

The momentum continued into the first half of FY26. Revenue grew 54.4% year on year to Rs 295 crore, driven by the core business, up 38.6%, and growth businesses, up 237.3%. Adjusted EBITDA rose 188% to Rs 90 crore, with margins at 33.6%. The company delivered 77% operating leverage despite continued reinvestment in scaling businesses.

As growth segments expand, operating leverage may continue to support profitability. Management has said investment will remain elevated in the near term, which may moderate profit growth. The approach aims to support longer-term compounding.

For mature verticals, management targets growth of about 25%, with variable contributions from new businesses. At Rs 631 per share, the stock trades at a price-to-earnings multiple of 30. As earnings scale, this valuation may compress.

Risks remain. A faster-than-expected shift from FASTag to Global Navigation Satellite System-based tolling could disrupt payments. The company says it can adapt by supplying on-board units and using its distribution network.

Revenue concentration is another risk, with one strategic partner contributing more than 45% of total revenue. Any slowdown in core segments or execution issues in scaling the marketplace and financing businesses could affect growth.