ALLCARGONSEQ1 FY 2026August 20, 2025

Allcargo Logistics Limited

6,174words
32turns
4analyst exchanges
3executives
Management on call
Ravi Jakhar
DIRECTOR, STRATEGY AND GROUP CHIEF FINANCIAL OFFICER, ALLCARGO LOGISTICS
Jan Kleine Lasthues
CHIEF OPERATING
Stephen Dunn
FINANCE DIRECTOR, ECU WORLDWIDE, ALLCARGO LOGISTICS
Key numbers — 40 extracted
rs,
s to be in good shape, the trade volumes have been growing well. There are a lot of emerging sectors, particularly e-commerce and quick commerce, which continue to grow well. And all of these leads to
50%
ntract logistics business, if we compare prior to the previous year, we have grown our revenue by 50%. EBITDA has gone up by about 30%. On the domestic express business: The whole Gati turnaround h
30%
compare prior to the previous year, we have grown our revenue by 50%. EBITDA has gone up by about 30%. On the domestic express business: The whole Gati turnaround has been panning out well. We have
8%
reported PAT. In terms of the near-term momentum: We are seeing a strong rebound with almost 8% to 10% increase in volumes. However, this is not structural, I would call it more seasonal. As th
10%
orted PAT. In terms of the near-term momentum: We are seeing a strong rebound with almost 8% to 10% increase in volumes. However, this is not structural, I would call it more seasonal. As the holid
Rs. 3,817 crore
mance for the company for Q1 FY '26. On the consolidated side: Revenue for the quarter stood at Rs. 3,817 crores, which is a marginal increase of 1% over the corresponding quarter last year and a decline of ma
1%
olidated side: Revenue for the quarter stood at Rs. 3,817 crores, which is a marginal increase of 1% over the corresponding quarter last year and a decline of marginal 3% over the previous quarter.
3%
h is a marginal increase of 1% over the corresponding quarter last year and a decline of marginal 3% over the previous quarter. The consolidated gross profit for this quarter stood at Rs. 856 crores
Rs. 856 crore
of marginal 3% over the previous quarter. The consolidated gross profit for this quarter stood at Rs. 856 crores, which is a growth of 8% over the corresponding quarter last year and 2% over the previous quart
2%
ter stood at Rs. 856 crores, which is a growth of 8% over the corresponding quarter last year and 2% over the previous quarter. I would say that the volumes have remained flattish, and we have maint
Rs. 103 crore
TDA, excluding other income and other items from a business standpoint for the Q1 FY '26 stood at Rs. 103 crores compared to Rs. 136 crores for the same quarter last year and about Rs. 128 crores for the previ
Rs. 136 crore
and other items from a business standpoint for the Q1 FY '26 stood at Rs. 103 crores compared to Rs. 136 crores for the same quarter last year and about Rs. 128 crores for the previous quarter. What we have s
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Guidance — 11 items
On the consolidated side
opening
“And we will perhaps come back with some views when we report next quarter.”
On the consolidated side
opening
“So that's a broad perspective on the financial performance and the business outlook, but we will be happy to engage in the discussion.”
Ravi Jakhar
qa
“Speaking on the actual impact, like I said, approximately, and it will be plus/minus 5% here or there, but approximately, say, 50% of the cost is on the ocean freight side, which is entirely U.S.”
Ravi Jakhar
qa
“And in the FCL, ocean freight will be a slightly higher component because ocean freight could be around 65%, 70% in the FCL business because the initial part, there's no stuffing, destuffing, those operations are limited.”
Ravi Jakhar
qa
“We feel that there could be similar provisions in the next quarter as well on the doubtful debt.”
Ravi Jakhar
qa
“But you had some change in plan moving into a different location and possibly that will be delayed by two quarters.”
Jan Lasthues
qa
“So everybody was expecting that there will be a trade deal or at least a decision on the China tariffs between U.S.”
Jan Lasthues
qa
“And our aim for sure to grow further because, well, we have not the largest market share so growth is possible and that’s our clear aim, growth take more market share.”
Vikram Suryavanshi
qa
“What chance is there that out of what tariff hike is happening how much will be borne by the brand, how much will be from the supplier, and some basically on supply chain.”
Jan Lasthues
qa
“So if we are talking new tariffs, China to the U.S., so, well, this is one trade line which will be hit by it.”
Risks & concerns — 15 flagged
So, at this point in time, it's very difficult to make any long-term comments.
— In terms of the near-term momentum
3,817 crores, which is a marginal increase of 1% over the corresponding quarter last year and a decline of marginal 3% over the previous quarter.
— On the consolidated side
And therefore, you will see the impact of euro inflation in both the gross profit being higher and also the staff and the G&A cost also being higher as Europe is a key region.
— On the consolidated side
So now if you look at Q1 FY '26, the impact of foreign exchange loss, which is notional, is almost Rs.
— On the consolidated side
The air volume for the quarter stood at 8.4 million kilos, which represents a growth of 5% as compared to same period last year and a seasonal decline of 14% as compared to Q4 FY '25.
— On the consolidated side
3,330 crores, which is similar to the corresponding quarter of last financial year and a marginal decline corresponding to the previous quarter, which primarily indicates that while volumes have been flattish, the freight rates have also been range bound as an outcome of that, the numbers have also been broadly flat.
— On the consolidated side
However, despite the decline in the revenue, the cost initiative measures which we have been adopting allowed us to increase the EBITDA by 18% during the same period of corresponding quarters.
— On the consolidated side
So from that standpoint, we do not see a real impact of fluctuations between local currencies and the U.S.
— Ravi Jakhar
Now in terms of the cost itself, apart from this, the impact of euro versus USD or euro versus INR, which is a reporting currency here, other things have been, there have been some one-off payments.
— Ravi Jakhar
You also provided for doubtful debts, which we have kind of discontinued some of the non-core businesses, which we felt had higher risk and some of these amounts are pertaining to the business.
— Ravi Jakhar
In terms of the initiatives, there was the second part of your question, if I recall, where the impact of the initiatives on the cost reduction and all.
— Ravi Jakhar
The first phase should lead to an impact of about $1.5 million on an annualized recurring savings basis.
— Ravi Jakhar
Beyond that, there will also be an impact of the improved operations in terms of the volume goes up and the cost of mid-mile ability to run the trucks for high kilometers per month, a lot of those operational parameters are typically linked to volume.
— Ravi Jakhar
So as I understand, your question is around the impact of the tariffs and the increased penetration and the outlook for door-to-door through the ECU360 platform.
— Ravi Jakhar
Well, I think in general, well, we all see how volatile the market is at the moment.
— Jan Lasthues
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Q&A — 4 exchanges
Q
Yes, sure. So let me start with the international supply chain business. On the International Supply Chain business, our primary operating currency is U.S. dollar, and therefore, the business largely operates in U.S. dollar. And we see consistency, when we look at the U.S. dollar numbers there's a good amount of consistency on the yield because the entire business is via the U.S. dollar internationally. And therefore, if you look at our gross profit over the last three quarters and divide it by the volume, which is the yield, it is absolutely consistent over the last three quarters taking out
Ravi Jakhar
Yes. Approximately, I would say, $1.5 million of third-party provisions, roughly about $700,000 of intercompany receivable positions squared off net impact. And approximately, $1.5 million to $1.7 million of variable payouts, which was not provided considering the financial performance. But then we felt that given the competitive outlook and the performance of the company, we decided to give a part of the variable performance bonus, etc., which is amounting to about $1.6 million to $1.7 million. These are the three numbers. So totaling about $2.2 million on the provision side and about $1.6 mi
Q
Just two questions. One is that, with this tariff, how do you see reorientation of trade or early signs from the customer side in terms of volume impact in a particular region, if you can highlight to some extent? And secondly, in terms of ECU360 app, I just wanted to understand, out of total volume, how much would be our like door-to-door kind of volume? And is there any scope further to really capture the share of customers' whole end-to-end logistic from say a point to delivery for us?
Ravi Jakhar
Yes. So as I understand, your question is around the impact of the tariffs and the increased penetration and the outlook for door-to-door through the ECU360 platform. So let me invite my colleague, Jan Kleine, to come in and share his views and add on to the comment. Jan, you want to share your views on what's happening with the whole tariff environment and then also on the door deliveries and the potential with ECU360? Sure. Absolutely. Well, I think in general, well, we all see how volatile the market is at the moment. And I think it's quite hard to predict how tariffs develop in the coming
Q
Now I hope this is better. There are some network issues. So probably, I think I am audible now.
Ravi Jakhar
Yes, Vikram, we can hear you. So Jan, Vikram was primarily asking about, is there expectations from the supply chain companies, the logistics partners from the companies to be a part of the tariff hit. So from my perspective, let me share my views, and Jan can add to that. So basically, when there's increase in cost, whether it's cost on account of raw material or cost on account of freight or cost on account of tariffs such as the current environment, naturally, everybody is trying to mitigate the costs and negotiations may happen. However, where we sit in the supply chain is we are kind of a
Q
Yes. Thank you for your patience and staying back. Unfortunately, line got disconnected. But I would like to thank you again for joining us on the call. And we will keep you posted about all the developments on a monthly and a quarterly basis. We believe in best disclosures to make our investors and analysts more aware about our business and understanding as well. I would encourage everyone to come back with questions to our Investor Relations team with your suggestions with any more information or data that you believe might be helpful in better understanding of the company. Over the last few
Management
Speaking time
Ravi Jakhar
9
Vikram Suryavanshi
8
Moderator
6
Jan Lasthues
5
On the domestic express business
1
On the international supply chain side
1
In terms of the near-term momentum
1
On the consolidated side
1
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Opening remarks
Ravi Jakhar
Yes. Thank you, and good afternoon to everyone. Thank you for joining in on this call. And I will take you through the financial and business highlights for the quarter, along with my colleagues Jan and Steve on the call. And happy to respond to your questions or information that you may seek. To sum up, if you look back at the quarter gone by, we could split it into two core segments, the international supply chain business and the domestic business. On the domestic business, there are no macroeconomic challenges, the country's economy seems to be in good shape, the trade volumes have been growing well. There are a lot of emerging sectors, particularly e-commerce and quick commerce, which continue to grow well. And all of these leads to opportunities in logistics sector. And as an outcome of that, we have also seen good progress in the domestic business. Contract logistics business, if we compare prior to the previous year, we have grown our revenue by 50%. EBITDA has gone up by about
On the domestic express business
The whole Gati turnaround has been panning out well. We have been able to now be a bit more selective on the revenue, and at the same time rationalize margins and costs, which is why we have been able to improve the EBITDA in the express business also. And as we head into the month of July and August, we also seeing the revenue momentum coming in. So, on the express and contract logistics business: Good performance, good momentum. And possibly, we should see more benefits coming out from an operating leverage with white space reduction the contract logistics business and with increased volumes and revenue in the express business in the coming months and quarters to follow.
On the international supply chain side
While the company-specific initiatives have been all going okay. The macroeconomic volatility remains. The geopolitical tensions have not de-escalated, there are a little bit of concerns around the whole tariff announcement by U.S. which continue to impact the trade, which remains subdued. And that's why we have seen volumes and the overall performance being more flattish from a gross profit perspective. And then there are some impacts on the costs, which have impacted at the EBITDA level. And there's also an ocean loss of FX, which I will explain once I complete the highlights as that is a significant number for the quarter, which is impacting the reported PAT.
In terms of the near-term momentum
We are seeing a strong rebound with almost 8% to 10% increase in volumes. However, this is not structural, I would call it more seasonal. As the holiday season demand starts picking up, this is normal for the July, August, September quarter to be stronger on volumes and the overall performance. And that is what we are seeing on a relative Q-on-Q basis. But in terms of the overall broader recovery, trade volumes normalizing, the macroeconomics being more positive, these are things which need to be further cautiously seen over the coming months and need to see how these geopolitical events shape up. So, at this point in time, it's very difficult to make any long-term comments. The near to next three months look good. Beyond that, we will have to see in the coming couple of months. Let me take you through some of the financial highlights on the consolidated and the segmental performance for the company for Q1 FY '26.
On the consolidated side
Revenue for the quarter stood at Rs. 3,817 crores, which is a marginal increase of 1% over the corresponding quarter last year and a decline of marginal 3% over the previous quarter. The consolidated gross profit for this quarter stood at Rs. 856 crores, which is a growth of 8% over the corresponding quarter last year and 2% over the previous quarter. I would say that the volumes have remained flattish, and we have maintained a high yield, which is what is protecting the gross profit. But the additional increase that we see in the gross profit is also on account of some of the local revenue that we earn in European countries, which is in euro, and euro has had a sharp appreciation in the last quarter. That of course also means that the European salaries and cost paid out also had an impact. And therefore, you will see the impact of euro inflation in both the gross profit being higher and also the staff and the G&A cost also being higher as Europe is a key region. On an overall basis, t
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