India · Delayed Price · Currency is INR Mahindra Logistics Earnings Call Transcripts
Fiscal Year 2027
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Q1 FY 2027 saw a strong turnaround with 23% YoY revenue growth and a PAT swing to INR 25.4 crore, driven by robust performance in contract logistics and express segments. Margin expansion, operational discipline, and technology adoption remain key priorities.
Fiscal Year 2026
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Returned to profitability in FY 2026 with 15% revenue growth and improved margins across segments. Express and contract logistics showed strong gains, while prudent cost control and strategic pruning enhanced profitability. Freight forwarding faces near-term headwinds from geopolitical issues.
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Profitability returned after 11 quarters of losses, with Q3 revenue up 19% YoY and gross margin expanding to 10%. Strong growth in 3PL, freight forwarding, and mobility segments, while last mile faced margin pressure. Debt reduced via rights issue, and management expects continued margin improvement.
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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 losses narrowed. Leadership transition to Hemant Sikka as CEO and a strategic pause in warehousing expansion signal a focus on operational efficiency and market recalibration.
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Q3 revenue grew 14.1% year-over-year, driven by strong order intake and warehousing growth, though express business remains challenged by tough market conditions and operational issues. EBITDA improved, but net loss persisted, with break-even in express targeted in two quarters.
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Revenue grew 11.5% YoY in Q2 FY25, led by warehousing and freight forwarding, but PAT declined due to seasonal hiring and unabsorbed warehouse costs. Express business breakeven is delayed to FY25-end, requiring significant volume growth amid challenging demand.
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Revenue grew 10% year-over-year, but PAT declined 54% due to higher labor costs and pre-operating expenses. Express and warehousing segments faced margin pressure, though order intake and new facility launches signal optimism for H2 FY 2025.