Ladies and gentlemen, good day and welcome to the Allcargo Logistics Limited Q4 and FY 2026 earnings conference call. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Suyash Samant from Stellar IR Advisors. Thank you, and over to you, sir.
Thank you. Good afternoon, everyone, and thank you for joining us today. We have the top senior management team of Allcargo Logistics Limited, Mr. Ketan Kulkarni, Managing Director and Chief Executive Officer, Mr. Deepak Pareek , Chief Financial Officer, and Mr. Sanjay Punjabi from Investor Relations. The management will be sharing operating and financial highlights for the quarter and the financial year ended March 31st, 2026, followed by a question and answer session.
Please note that this call may contain some of the forward-looking statements, which are completely based upon the company's beliefs, opinions, and expectations as of today. These statements are not a guarantee of the company's future performance and involve unforeseen risks and uncertainties. The company also undertakes no obligation to update any forward-looking statements to reflect the developments that occur after the statement is made. I now hand over the conference to Mr. Ketan Kulkarni. Thank you, and over to you, sir.
Good afternoon, everyone, and a very warm welcome to our Q4 and FY 2026 earnings conference call. Thank you for joining us today and for your continued interest in Allcargo Logistics. Our financial results and earnings presentation for the quarter and the financial year ended March 2026 have been uploaded onto the stock exchanges, and I trust you have had the opportunity to review the numbers. I will share a brief overview of the macroeconomic environment. While global growth has moderated, India still continues to demonstrate resilience. According to the IMF, domestic economy is expected to grow at about 6.5% in FY 2027, supported by strong consumption, sustained public CapEx, and improving private investment. The continued policy focus on infrastructure development is improving logistics efficiency and supporting higher freight movements, creating a favorable environment for organized players like Allcargo Logistics and others. High-frequency indicators remain encouraging.
E-way bill generation reached 140.6 million in March 2026, reflecting a 13% year-on-year growth, while GST collection stood at INR 1.78 lakh crore, up 8.2% year-on-year. These indicators, along with strong private consumption trends, point to sustained momentum in domestic trade and supply chain activity. In line with evolving consumption trends, especially the rapid expansion of e-commerce and quick commerce, we have strengthened our network and operational capabilities. We currently handle over 10 million packages per month in this segment, supported by integrated capabilities across fulfillment, sorting, transportation, along with technology-led interventions such as warehouse management system and route optimization. We are also focusing on strengthening our presence in clusters in Bharat, the Tier 2, Tier 3 India. Various clusters have been identified, and industrial areas have been identified for further intervention and stronger go-to-market programs.
We are working with several active customers and are looking to further solidify our position. Our strength lies in our understanding of the logistic complexities for large industrial clusters as well as small businesses through innovative solutions. We are empowering these businesses to expand their reach and enhance operational efficiency. The businesses we work with and support and partner are across industry verticals. Technology and digitization continues to play an important and central role in our operations, driving better visibility, coordination, production, execution, and resilience across the value chain. To further strengthen our execution and growth strategies, we have recently onboarded Amit Chhari as Chief of Operations, Express Division. He is a transformation leader with deep expertise in B2B express logistics with the market leader in network strategy and large-scale operations.
Simultaneously, we have also onboarded Samir Ahuja as Chief of Sales, Express Division, a seasoned professional with over three decades of experience in driving business growth and managing key customer relationships across telecom, retail, and logistics. Their extensive experience will be instrumental in scaling our business, enhancing operational excellence, and driving customer acquisition and retention. Looking ahead, while we are cautious on the near-term outlook due to the current geopolitical scenario, we remain focused on efficiency-led profitable growth, with continued emphasis on strengthening our core network and expanding transportation and also full truckload capabilities. With integration now largely behind us, we expect our EBITDA and PBT to go ahead of revenue in the coming quarters. With that, I would like to hand over the call to our Chief Financial Officer, Deepak Pareek, who will take you through the financial performance in greater detail.
Once again, thank you very much for sparing your valuable time coming on the call. Over to you, Deepak.
Thank you, Ketan, for the comprehensive overview on the performance for financial year FY 2026. Good afternoon, everyone, and a warm welcome to all our participants on the Q4 and FY 2026 earnings call. I will now take you through the financial performance for the quarter ending March 31st, 2026. During Q4 FY 2026, Allcargo Logistics handled a total volume of 3 lakh metric tons under the Express business unit.
Realization per metric ton stood at INR 12,037, reflecting an increase of 3% on year-on-year and 4% sequentially. Moving to the consolidated financials, revenue for the quarter stood at INR 514 crore, as compared to INR 513 crore in the corresponding period last year and INR 516 crore in the previous quarter. Gross profit for the quarter stood at INR 154 crore, compared to INR 149 crore in the corresponding period last year, which is broadly in line on a sequential basis.
EBITDA for the quarter was reported at INR 60 crore, a strong 41% growth from last year and broadly in line sequentially. On a full year basis, revenue stood at INR 2,058 crore, registering a growth of 5% over the previous year. EBITDA for the year came in at INR 233 crore, reflecting a healthy growth of 16% year-on-year. Turning to the Express division, revenue for the quarter stood at INR 362 crore as compared to INR 343 crore in the same period last year, and INR 364 crore in the previous quarter. For the full year, Express business revenue stood at INR 1,442 crore as against INR 1,416 crore in the previous year. Moving on to the consultative logistics business. The total warehouse space under management stood at 8 million square feet as on March 2026.
Revenue for Q4 FY 2026 was INR 151 crore, reflecting a growth of 3% year-on-year. On a full year basis, revenue for the consultative logistics business stood at INR 615 crore, registering a healthy growth of 17% year-on-year. With that, we conclude our opening remarks. We would now be happy to answer your questions. Thank you for your continued participation and support. Thank you. Over to you.
Thank you, sir. We will now begin the question- and- answer session. Anyone who wishes to ask a question may press star and one on their touchscreen telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from Advait Javkar with Equipoise Capital Management. Please go ahead.
Yeah. Hello, am I audible?
Yes.
Yeah. Thank you. Thank you for the opportunity. I would like to know the expected listing date of Allcargo Global. Since you mentioned in the previous con call that the listing would be completed by quarter four of FY 2026, but there have been no updates so far. Could you please provide an update on the status? Are there any issues or challenges causing the delay?
Yeah. Thank you. I would request Sanjay Punjabi, who handles-
Investor relationship.
investor relationship from both the entities and the group of Allcargo to respond, please. Since it is related to Allcargo Global.
Yes, sir. The line for Sanjay has dropped. I am just reconnecting him. Please stay connected. Thank you.
Yeah. We will hold the question. Please hold the question. Let him reconnect, and then we can
Yeah. Okay. I will come back to you.
Yeah.
Okay.
Yeah. Sorry.
Thank you. The next question comes from the line of Vikram Suryavanshi with PhillipCapital India. Please go ahead.
Yeah. Good afternoon, sir. How is the opportunity for increasing the wallet share for our businesses and lever for margin expansion, if you can highlight, I think that is okay.
Sorry, Vikram, you will have to again repeat the question. Your voice was-
Sure
Breaking. Yeah, please.
Is it audible or should I
Yeah. It is better audible now. Tell me.
Okay. So one, I was asking about the opportunity to increase our wallet share in our businesses, how much scope is there and how we are targeting that, and then a lever for margin expansion, particularly for B2B or express side of the business.
Thank you. A very good question to begin the call. You said, how are we increasing our market share and also our market expansion. If I understand you correctly, market expansion will be a key lever to improving the market share. There are two ways to look at market share. One is the revenue market share and the other is the volume market share. We are very focused on both and whatever market share expansion or market expansion strategies that we have, whether it is focusing on large KEA, key enterprise accounts, whether it is focusing on MSME or on retail, we are very clear that all new customer onboarding and all organic growth in all the three segments in Surface and Air will all be very positive on the margins and the bottom line. It is going to be a calibrated call.
The focus while it will always be on gaining market share, growing faster than market, a lot of weightage will be on improving the profitability of this expansion and this share. Does that answer your question or would you like me to detail this a little more for you?
A little detail on the margin expansion in terms of particularly for, say, are we still seeing a lever for gross margin improvement with, say, pricing or customer reorientation of contract? Or is there any further scope significantly or have we seen the pricing discipline in the system or our system has come back, which is helping us to improve margin or at operating lever? How is that basically shaping up for us in terms of gross margin or improvement possibility in market pricing stability front or any other operating leverage we have?
I think your question is more towards the Express division. I will answer-
Correct
I will answer for that division because I need to be clear there. A lot of work has happened in the last six months and in fact, we started off the year with a GPI activity to improve the INR per kilo that we were getting from the customer. We introduced a lot of measures. We introduced the metro condition charge, which is a charge for value when we do urban logistics. Urban logistics in large metros is becoming more and more difficult to do because of infrastructure, et cetera. We introduced the next round is zero, where we are rounding off the weight of the customer shipment to the next zero. We introduced AER charges, which is Allcargo Extended Reach charges for about 1,100 difficult-to-do PIN codes.
We did this simultaneously when we subdivided our 19,000 PIN codes into 32,000 PIN codes to have granular operational capabilities and also granular pricing to the customer. All these have had a positive impact on the yield and the RPKG over the last six months, and it has improved to a level that we are very comfortable now where we are with the RPKG. Whilst doing that, we are also cognizant with the huge cost pressure that we are seeing on various aspects of the business due to the West Asia crisis and also the morning announcement today. We are fairly well covered on that and there is a plan to cover that much more as we get ahead into this financial year in Q1 and Q2.
Our margin expansion plan is on track on the Express side of the business, and we are very comfortable the way we have kind of executed it.
Got it. Concerning to business side, how is the strategy in terms of expanding the throughput or capacities, or will it as a mix of asset-light model in terms of growth aspiration there and how would the capacity look like on that side of the business?
I will request Deepak, our CFO, to come in. Over to you, Deepak.
Yeah, thanks Ketan. Consultative Logistics has seen a remarkable revenue growth in the current year. 17% growth in this year is phenomenal. That growth has happened on the back of mixed approach of asset-light and some component of asset-heavy components, because we have expanded the transportation vertical last year quarter. As we mentioned on the call, under this segment, we have started doing full truckload business. That has given a bulk up of revenue. That is the asset-light piece which is there. There are components of in-plant services which we do. That is also an asset-light piece. On the warehouse is pure play 3PL. We have moved to an asset operating lease strategy from April 2025, and that has been helpful in terms of CapEx outlays. We have conserved cash due to that.
In the current year, next year, if you see on the expansion bit, we have a plan to add 500,000 sq f t additional on the warehouse space, and that would be done largely on an asset-light approach. That will add to a significant capacity, but nevertheless, I think the focus on this Consultative Logistics is to enhance the gross margin share. The growth which is already achieved last year, I think we are very comfortable with that, and now we want to deepen up the margin realization on that business further.
Got it. Just last question to clarify. Is there any white space or under replacement of existing capacity within that where we can still see further growth possible, or it is almost like a running at a full kind of business and with existing capacity?
This industry, white space is a requirement as per the running stock. We are well below the industry norm. We track that matrix very closely, and we are comfortable on that count.
Got it. Thank you very much.
Thank you.
Hello. Hi, everybody. Hi. Elrich, am I audible?
Yes, sir. You are audible.
Yeah. Hi. Sanjay Punjabi this time. My line had dropped earlier. I am sorry. I will just address the question on Allcargo Global's listing. So we have received the necessary approvals from both exchanges and SEBI as well, day before yesterday. All we need to do now is file the revised information memorandum with authorities, with the audited annual financials. We can expect the listing to happen in about a month's time from now on. Thank you.
Thank you, sir. A reminder to all participants, please press star and one to ask a question. The next question comes from the line of Advait Javkar with Equipoise Capital Management. Please go ahead.
Thank you. Thank you. Thank you once again. The same question related to Allcargo Global. Is there any financial information available for us to understand about the Allcargo Global business right now for this conference?
Yeah. Hi. Advait, what we have coming two weeks. And these are the information memorandum will carry all the information on the financials as well. In the next couple of weeks, once the IM is filed, information on the financials will be available to all.
Yeah. Okay. Thank you. And one more question for Allcargo Logistics. The recent increase in the petrol and diesel prices announced today, how do you expect this impact to the Allcargo Logistics business? Should we expect any slower growth or subdued margin in H1 FY 2027 as a result of a higher fuel cost?
See, this is an element of cost which is already built in in our contract with the customer. As you know, we are a strong B2B player, and we have tight contracting with all our customers. And this element of cost is a passthrough along with other costs which are built in as a part of contract. So we don't see a challenge on that count.
Yeah. And further to Deepak's answer, we have a very transparent diesel price hike passthrough mechanism, which is already up on our website. Customers can refer to it anytime, and that kind of allows them to predictively calculate what the passthrough will be also. And also monthly, we announce what is going to be the DPH percentage applicable on their billing. So it's a very transparent, customer-friendly mechanism that we have. So we are very well covered on the morning announcement. Thank you.
Yeah. Thank you so much.
Thank you. A reminder to all participants, you may press star and 1 to ask a question. Our next question comes from Anil Raju, an individual investor. Please go ahead.
Hi. Hope you are able to hear me.
Yes, Anil. Go ahead, please.
When I see the balance sheet, EBITDA is improving to INR 233 crore, but PAT remains INR 6 crore. When we expect meaningful bottom line improvement?
Anil, if you see the improvement at the EBT level, pre-exceptional items, you can very well see there is a 96% improvement, which has already happened in this year. The buildup of growth is already in place, and if you see the going next quarter, that will be visible in terms of the entire contribution.
Oh, okay. Another question. What concrete milestones should investor track over next four to six quarters, which is the Allcargo growth turnaround and integration strategy is succeeding well or not?
Only metrics for investors to track is the EBITDA improvement. Our EBITDA has shown an improvement from 10%- 11% we have achieved in this year. Progressively, we are committed towards that value creation and enhancement of shareholder value.
Oh, okay. And another last question. Any comments on the dividends industry?
So dividend is a function, a decision of board and the shareholders, and at the right point of time, we will recommend that to the shareholders. Yeah.
Okay. Thank you.
Thank you. The next question comes from the line of Parag Vatsal from Kingstone Capital Management. Please go ahead.
Yeah. Hi. Thanks for the opportunity. I wanted to know the split between Express and Contract Logistics, post Ind-AS EBITDA .
We have given a disclosure on slide 22 that would give you some help, and based on that account, we can ask Sanjay to converse with you. I think, Sanjay, that would help.
Sure thing, sir. Gladly like review after the call. Okay, sure. I will take it offline then.
Thank you. Participants, you may press star and one to ask a question. The next question comes from the line of Chinmay Parab, an individual investor. Please go ahead.
Hello. Thank you for the opportunity. Am I audible?
Yes, Chinmay. Please be a little louder, though. Thank you.
Hello. Is this better now?
Yes.
Yes. Thank you, sir. My first question is regarding the EBITDA. As we can see, the EBITDA for the full year of 2026 has grown by 16% year-over-year, and EBITDA margins are improving to 11%, despite largely flat quarterly revenue performances. What were the major drivers behind the sharp profitability, and how sustainable are those margins going forward?
Chinmay, thanks. Deepak here. If you can see the breakup on year-on-year basis, the gross margin, gross profit has increased by 2% from last year. That is one lever adding to the EBITDA improvement that comes on a back of the operating efficiency, which we had mentioned in the last call with the integration of Express and CL, that there would be an opportunity to do that. Also, if you can see the employee expense and other expenses, there has been a significant rationalization, which has really helped the company to get into the EBITDA trajectory which we were aspiring. That has given the 16% growth. It is a combination of both on the cost, though we understand the revenue has been a 5% growth. On a combination, if you see, CL has grown exceptionally well and Express has remained flat.
On overall, the EBITDA value creation has happened at 16% growth.
Correct. As we see the quarter four performance, on the top line basis, it is largely flat. Just getting to know from your side, how are we seeing this going forward? Do you see these margins to be maintained? What kind of trend can we expect?
The trend continues to be favorable. We are seeing from the month of March onwards the pent-up volume, which is happening even March, April. Last quarter, if you see Jan and Feb, we had a flattish kind of month, but the volume trend is at par with the industry level. Coupled with that, we had done what Ketan mentioned in the opening remarks about the price action. That is giving us a revenue bump up. Midst of that, the reaction will be visible in this Q1 of this year. Anything, Ketan, you want to add?
No, I think you kind of covered it. We are very optimistic about Q1 FY 2027 numbers. As I said earlier on the call, growth is the only elixir of the business going ahead and to qualify it, profitable growth. You will only see improvement in margins going ahead.
That is perfect.
Thank you. I would like to point out with respect to express volume, they remain largely flat during FY 2026 with surface express volume even witnessing moderation sequentially. What were the key demand challenges during the year that we have faced, and what does the management expect with respect to volume acceleration?
Express volumes, if you see, were about [inaudible] Q1. There is a growth. Year was flat, but if you see the Q-on-Q, they are up about 2%. At the same time, if you compare that to the revenue, you would see a better uptick on revenue, and that kind of reflects the focus we had had on bringing quality revenue, quality customers that impact the margin. Those were the calls we took. We went more after profitable customers. We even weeded out a few non-profitable customers. We did that calibration, and as we start Q1, we are in a very comfortable place that all customers that we do business with are going to add to our profit margins going ahead. We had to recalibrate a few segments and customers, and that is what we have done.
Hence, you will see that revenue growth is higher than the tonnage growth.
Got it. As we are coming to consultative logistics revenue, it has grown by 17% year by FY 2026, significantly outperforming the overall business. Which sectors and service offerings are driving this momentum, and does the management expect similar growth rates in FY 2027?
By similar, I do not want to qualify the word, but we will definitely see much better growth than you are seeing in the years gone by and in the quarter-on-quarter of last year to this year on the express side of the business.
Yeah. Which sectors and service offerings are driving this momentum?
Sorry?
Which sectors and service offerings are driving this momentum?
The momentum being driven largely by our surface business, but air will also be a continuing focus.
Okay.
Yeah. This is on the express side you asked me, right? Or the CL side?
Express side.
Sorry, express?
Yes.
Yeah. Surface will be the growth driver on the product side with tonnage as a focus area. The sectors that are essentially driving this is auto and engineering, pharma, and also diversified industries. These are the three sectors we are seeing the growth on.
Okay. One last question from my side. The company has highlighted strong traction in e-commerce and quick commerce and cluster-focused expansion strategies during FY 2026. How are these initiatives contributing to customer acquisitions and market share expansion and maybe market share gains as well? Can you shed some light on that?
Sure, definitely. The e-commerce and quick commerce business that you're referring to happens on the consultative logistics side. We run sort centers, fulfillment centers, cross-dock centers for all the large e-commerce and quick commerce businesses. If you draw a list of the top three e-commerce players in the country, we do the business with them. If you draw the list of the top three quick commerce companies in the country, we do business with them. This is essentially on the CL side. On the express side, we do not do any B2C deliveries for quick commerce or e-commerce.
Sure. That is it from my side, sir. Thank you so much for your time, and all the best going ahead.
Thank you so much for your wishes and your time.
Thank you. A reminder to all participants, please press star and one to ask a question. Ladies and gentlemen, as there are no further questions for today, I would now like to hand the conference over to Mr. Ketan Kulkarni for the closing remarks.
Thank you. Thank you very much. It was great interacting with everybody on the conference, and we look forward to your continued support and participation on our next earnings call. Thank you, everybody.
Thank you, Deepak Pareek, to everybody for participation.
Thank you.
Thank you, everybody.
Ladies and gentlemen, on behalf of Allcargo Logistics Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.