India · Delayed Price · Currency is INR Mahindra Logistics Earnings Call Transcripts
Fiscal Year 2026
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Returned to profitability in FY 2026 with strong revenue and margin growth across key segments. Express and contract logistics led performance, while freight forwarding faced geopolitical headwinds. Strategic cost control, warehouse optimization, and e-commerce growth underpin a positive outlook.
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Profitability returned after 11 quarters of losses, with Q3 revenue up 19% YoY and margin expansion across key segments. Strategic exits, pricing discipline, and cost controls drove improved results, while last mile remains under pressure.
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Revenue grew 11% year-over-year, with strong gains in warehousing and express logistics turning gross margin positive for the first time. Debt reduction from the rights issue improved financial strength, while operational and cost initiatives are driving margin expansion.
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Q1 FY26 revenue grew 14% YoY to INR 1,625 crore, with strong warehousing and express business momentum, though profitability remains challenged by yield pressure and unutilized warehousing space. A INR 750 crore rights issue aims to deleverage and support future growth.
Fiscal Year 2025
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The AGM highlighted strong revenue growth, strategic expansion, and leadership transition, with a focus on technology, sustainability, and a major rights issue for debt repayment. Key proposals included a final dividend, new stock unit plan, and board appointments.
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Q4 FY2025 revenue grew 8.2% year-on-year, led by warehousing and contract logistics, while express business showed sequential improvement but remains challenged by market conditions. Leadership transition and a strategic pause in warehousing expansion were announced.
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Q3 revenue grew 14.1% year-on-year, driven by strong order wins in contract logistics and warehousing, while express business losses narrowed but volumes remained flat amid operational and market challenges. EBITDA improved, and the outlook is positive for contract logistics, with express business targeting break-even in two quarters.
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Revenue grew 11.5% year-over-year in Q2 FY25, led by warehousing and supply chain management, but gross margin declined slightly and PAT fell due to seasonal hiring and unabsorbed warehouse space. Express business breakeven is delayed to end-2025, with ongoing investments and volume growth required.
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Revenue grew 10% year-over-year, but PAT fell 54% due to higher costs and delayed order conversion. Express and warehousing segments faced margin pressure, while new contracts and a joint venture with SENKO Holdings signal growth initiatives.