MAHLOGNSEQ4 & FY26April 24, 2026

Mahindra Logistics Limited

8,648words
116turns
11analyst exchanges
3executives
Management on call
Hemant Sikka
MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER
Isha Dalal
CHIEF FINANCIAL OFFICER
Mandar Chavan
STRATEGIC GROWTH ADVISORS
Key numbers — 40 extracted
INR1,000 crore
parallel, our e-commerce and quick commerce business has scaled meaningfully, reaching more than INR1,000 crores in annual revenue and reinforcing our position in a fast-growing future-ready segments of the lo
rs,
is real, embedded and is gaining momentum, positioning us to create lasting value for our customers, employees and shareholders alike. mallindra LOGISTICS We take pride in the progress made, but
49%
business updates. Starting with MESPL, our B2B Express logistics services. Quarter 4 revenue grew 49% year- on-year and the business continues its turnaround journey with positive gross margins and
12%
ent about its long-term potential. For our contract logistics business, quarter 4 revenue grew by 12% year-on-year, and our gross margins grew by 19%, a clear indication that our focus on operational
19%
act logistics business, quarter 4 revenue grew by 12% year-on-year, and our gross margins grew by 19%, a clear indication that our focus on operational efficiencies and profitable customers is workin
3 lakh
y serve as a clear competitive advantage for us. On the white space, we achieved a reduction of 3 lakh square feet in the last quarter and 9 lakh square feet in FY26. We remain committed to our glide
9 lakh
for us. On the white space, we achieved a reduction of 3 lakh square feet in the last quarter and 9 lakh square feet in FY26. We remain committed to our glide path on reducing our white space by Septe
17%
our white space by September '26. In our Freight Forwarding business, quarter 4 revenue grew by 17% Y-o-Y and our gross margins grew by 50% Y-o-Y, driven primarily by improved trade flows, operatin
50%
ur Freight Forwarding business, quarter 4 revenue grew by 17% Y-o-Y and our gross margins grew by 50% Y-o-Y, driven primarily by improved trade flows, operating leverage and a diversified customer ba
42%
ion while maintaining operational discipline. In our Mobility business, quarter 4 revenue grew by 42% Y-o-Y and our gross margins grew by 17% Y-o-Y. Our focus here is on improving the utilization lev
7%
ces that we made and at certain sites in Q4 in Y-o-Y. However, our gross margins has increased by 7% in Q4 Y-o-Y. Our focus on operational excellence continues to be recognised with accolades from l
14%
ief on the consolidated financial performance for Q4 and F26. Our revenue for Q4 F26 has grown by 14% year-on-year to INR1,791 crores and by 15% in the full year to INR6,999 crores. Our anchor custom
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Guidance — 20 items
Hemant Sikka
opening
“On the white space, we achieved a reduction of 3 lakh square feet in the last quarter and 9 lakh square feet in FY26.”
Hemant Sikka
opening
“We expect these challenges to persist in the near term, and we are closely monitoring the situation while maintaining operational discipline.”
Isha Dalal
opening
“Supply Chain Management, including our 3PL and network services business, which is Freight Forwarding, Express and Last Mile, contributed 94% of our overall revenue and the Mobility business has contributed 6% of revenue for Q4 and for FY26.”
Isha Dalal
opening
“In that context, reported EBITDA for the quarter stood at INR112 crores, up from INR78 crores in Q4 FY25.”
Isha Dalal
opening
“Adjusted EBITDA is at INR57 crores, up from INR37 crores in Q4 FY25.”
Isha Dalal
opening
“This is an adjusted EBITDA margin expansion from 2.4 % to 3.2% in Q4 FY26.”
Isha Dalal
opening
“Consolidated PAT for Q4 FY26 is at INR20.2 crores versus INR6.7 crores of losses in Q4 FY25.”
Isha Dalal
opening
“To reiterate, the operational PAT is grossed up for the tax adjusted impact of the exceptional item we took in Q3 FY26 towards the past gratuity service cost under the new Labor Codes.”
Isha Dalal
opening
“In this new construct, in Contract Logistics, our revenue for Q4 FY26 was INR1,381 crores as compared to INR1,233 crores in Q4 FY25, up 12% and the full year revenue is INR5,490 crores, which is up by 16%.”
Isha Dalal
opening
“In our Freight Forwarding business, the revenue for Q4 FY26 is at INR89 crores as compared to INR76 crores in Q4 FY25, which is up by 17%.”
Risks & concerns — 14 flagged
While we are encouraged by the improvement trajectory, the global environment continues to be uncertain.
— Hemant Sikka
In such a backdrop, we believe it is critical to remain prudent, selective and cautious in the coming year.
— Hemant Sikka
To reiterate, the operational PAT is grossed up for the tax adjusted impact of the exceptional item we took in Q3 FY26 towards the past gratuity service cost under the new Labor Codes.
— Isha Dalal
On the last mile consolidation part, what is the further impact expected as in are we done with the pruning excise or are we anticipating further decline at least over the near term until business stabilizes?
— Krupashankar Nj
And I can, but let me express my concern that if this kind of a diesel increase happens, then it will certainly have an inflationary impact on the overall economy of the country, and that may impact certain sectors that we play in.
— Hemant Sikka
Because these are very difficult businesses to build and the costs come upfront and the revenues and profits follow a lot.
— Hemant Sikka
All I can tell you is and difficult to share.
— Hemant Sikka
But in the last few weeks, we are beginning to see impact of the West Asia war on the global trade.
— Hemant Sikka
And you know how volatile that is and it kind of changes every day.
— Hemant Sikka
On all other segments, we have not seen any impact of the West Asia war so far.
— Hemant Sikka
But broadly, my concern is that if that kind of diesel price hikes happen, it will have some impact on economy.
— Hemant Sikka
And as I said, Express business is a difficult business to build.
— Hemant Sikka
And it's difficult for us to compare us with some very large companies which are in this business for decades older than us.
— Hemant Sikka
So as a result, that business is under pressure.
— Hemant Sikka
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Q&A — 11 exchanges
Q
Good afternoon. And thank you for the opportunity. And congrats on a great set of numbers, especially across Express business as well as your 3PL business. My first question would be on the Express side of things. Just wanted to get a sense around what would have been the volume growth for the quarter and for the year? And just an add-on question to that is that given that the Customer exercise is behind us, can one expect mid-teens sort of a growth over the medium term in this business?
Hemant Sikka
So let me -- Krupa, thank you so much for your question and for your compliments to our team. Let me answer the second question better that a mid-teen kind of growth is possible in this business, and that's what our team would be driving at. Coming to your first question, not right for us to only look at volume because any volume growth will not give you much insight into the business overall. Because as we have previously stated in our conference calls that just looking at volume will not give us key insights. We have to look at volume and yield together because sometimes you can get as much
Q
Good evening and congratulations on improved performance. Just had some question on Express business. So going at the good run rate of improvement, which we have seen over the last several quarters now, when do we expect the breakeven kicking in and the profitability also where it could reach once we kind of turn profitable, some insights on that. And also in that business, are we at the operational levels using significant amount of technology for like sorting belts and so on, if you can just highlight that?
Hemant Sikka
Alok, thank you for your compliments to our team. In MESPL, I mean, I can't share any forward guidance with you, but I can tell you that we have stated this that becoming EBITDA positive is mallindra LOGISTICS our immediate goal. In the last year, for the full year as a whole, we have become gross margin positive. And I can share with you that we are very close to an EBITDA positive number. I can't commit a timeline to you, but I can just tell you that we are very close to that kind of profitable metric reach. On the tech side, we do employ a very strong tech in this company. And we will also
Q
Yes. Congratulations on good set of numbers. Sir, just one observation. I mean, in Q3 of FY26, our warehousing space in the contract logistics business was about 20.4 million square feet. And in this quarter, we are at about 19 million square feet. So just wanted to get some sense, the margins improvement that we have seen in the business, has it got to do with the relinquishment of area and consequent fall in the rental cost? Or has it got to do with some kind of other benefits which you would want to highlight?
Hemant Sikka
So Jinesh, thank you for your compliments to the team. See, these are all business decisions we have taken over the last 4 quarters now, where some of the leases we have relinquished and some of the leases also have got over. So while we have won a lot of business, this is always a pipe in and a pipe out kind of a situation, which will keep happening. So, I think broadly, we are very invested into our 3PL business, contract logistics business, and we are looking at growth here. But just think about that in this year, we did take some calls on certain non-profitable businesses, non-profitable c
Q
Hello, good afternoon and congratulations for the excellent show, particularly the standout performance of the Express business. I had a question regarding certain items visible in the cash flow. So particularly, you can see a ROU reversal and the credit provision for trade receivables, which seems to be a fairly large amount of INR14 crores and some INR28 crores. So I just want to understand, is it netted off against other expenses? And is this a one-off? What has driven this? Like for the credit provision, is it a particular customer? Or are there more to come? So if you can just give some i
Isha Dalal
Yes. Khushi, I'll take that. Thanks for the question. I'll answer your question on the unrealized gain on reversal of ROU first. This is, again, in line with Ind AS 116 accounting. As you know, that when we get in a lease and when we capitalize our lease, the way Ind AS 116 accounting works is the curve impact ensures that there is a higher hit to the P&L in the initial few years of the lease. Therefore, when you terminate a lease before the contracted end period or you pre- close a property, there is a reversal that happens on that property. Hemant spoke about it earlier as well. These are bu
Q
Yes, thank you for the opportunity. Most of my questions are answered. I just have one broad question. Could you just highlight how the Express Logistics industry is panning out in terms of growth? There are two types of clients, one are corporate and second ones are MSME or SME set of clients which avail the service in this industry. Just wanted to understand how the dynamics have been changing that is leading to the volume growth that we are having or it is completely the company level call that we are taking, which is leading to volume growth?
Hemant Sikka
So actually, Chirag, this Express business or the whole industry is shaping up very well. And this is following the kind of trajectory which any developed society when it progresses, follows. If you see the Western world, a lot of the cargo moves by Express Logistics because people just are not in the habits of not getting their stuff on time or getting it only in the full truckloads. So, people would move the stuff even if like they said one packet to be moved or two packets to be moved or half a truck is to be moved, they will not wait for the truck to fill. So, the time element of the whole
Q
Hello good afternoon to the team and thanks for taking my question. My first question is around your express business which you have . I think you have mentioned earlier also. So, like while gross margins have improved very well in this business. So, what are the key levers that will drive the Express segment with EBITDA breakeven and subsequently profitability? Could you please explain a bit around this because your voice is kind of a lag priorly?
Hemant Sikka
Rehan, you are specifically asking for MLL as a whole or only for our Express business? Both? Both. Okay. So Rehan, at the overall MLL level, let me tell you that to get this kind of gross margin improvement, we have pretty well pressed all the levers, okay? It's difficult to narrate all of that. But whatever you can think of business, I mean, we have looked at pricing renegotiation with some of our clients. We have looked at all our cost elements, A to Z, whatever. I mean, even if we spend like INR10,000 in our business, we have relooked at whether we need to spend that kind of money or not.
Q
Hi, team. Am I audible? mallindra LOGISTICS
Hemant Sikka
Yes, Sumukh, please go ahead. Yes. So, sir, my question was, do you see any impact currently from the West Asia war on domestic or international logistic movements so far? And also, you also alluded to the fact that the fuel prices, if the magnitude is higher will be passed on. So how do you see this -- if there is a sudden spike in the fuel prices in India, how do you see this impacting the industry in the near term, sir? Sumukh, on West Asia, we are clearly seeing some headwinds in our Freight Forwarding business. That's a business, as you know, has done very well in quarter 4. And overall f
Sonal Minhas
Q
Hi, this is Sonal Minhas. I hope I am audible. Thanks for taking my question. So my question was with regard to the Express logistics business. Over the last 12-18 months, one of the competitors was absorbed by Delhivery, while the competitor is not financially healthy. And I think we've seen some rationality in terms of pricing realisation basically coming in the market. Just wanted to take your subjective comments on do you see more of realisation improvement in the coming quarters or in the coming year, directionally speaking, that's one? And secondly, the market leader has a gross margin o
Hemant Sikka
Yes. Sonal, on pricing, I would agree with your observation that there is some consolidation of the industry has happened. And as I said, Express business is a difficult business to build. It has very high entry barriers. And it is very good to note that the industry maturity is settling in and people are not only driving volumes at any price, but folks are kind of understanding that profitability is a very key part of running any business. So that kind of maturity even we are seeing in the market. So, I would totally agree with your observation. On your second observation of what kind of marg
Q
Am I audible, sir?
Hemant Sikka
Yes, Manish. Sir, are you comfortable in Hindi. Actually, I'm from Gujarat, so... Yes, Manishji, please ask. mallindra LOGISTICS Sir, since you took over the responsibility, you have turned the company quite profitable. Sir, I saw an interview of yours, perhaps it was during the annual AGM, at that time you said that we will take our turnover to INR20,000 crores. So, sir, is there any timeline for that? Manishji, thank you for your comments. I did not talk about INR20,000 crores in the last AGM at all. So that was not my statement. Maybe sir, there were rumors, perhaps of this kind. Yes, so ri
Q
Khushi, I would like to think about in this Express business or any logistics business per se that we operate in that quarter 4 is our best quarter of the year. So, it will not be fair to compare quarter 1 in your calculations with quarter 4. That's the first thing. Secondly, on the Express side, mallindra LOGISTICS we are not getting so much impacted by the West Asia crisis. Freight forwarding is purely related to -- and I want to emphasize that purely related to the West Asia crisis. Otherwise, that business is actually doing very well for us. But because there is choking of trade lanes, the
Khushi Soni
All right. Thank you, sir. Thank you, Khushi.
Q
Yes. Thank you all for joining, and I really want to thank each of our investors. You guys have helped us on our rights issue. I think that was a very significant milestone for Mahindra Logistics. So, we are very happy with all the support that you have provided. All I can assure you on behalf of my entire senior leadership team, and everybody is here with me while I speak. We are very committed to making sure that all our stakeholders benefit for the turnaround that we are trying to execute in MLL. Thank you all for joining us today. We hope we have addressed your questions and provided valua
Management
Speaking time
Hemant Sikka
49
Moderator
13
Alok Deora
9
Chirag
7
Manish Vyas
7
Rehan Saiyyed
6
Jinesh Joshi
5
Khushi Soni
5
Isha Dalal
3
Krupashankar NJ
3
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Opening remarks
Mandar Chavan
Thank you, Danish. Good afternoon, everyone. Thank you for joining us for Mahindra Logistics Limited Q4 FY '26 Earnings Conference Call. We are pleased to have with us today Mr. Hemant Sikka, our Managing Director and CEO; Ms. Isha Dalal, Chief Financial Officer (‘CFO’),; along with the members of the senior management team. I hope everyone had a chance to view our financial results and investor presentation, which were recently posted on the company's website and stock exchanges. We will begin the call with the opening remarks from management, followed by an open forum for question and answer. Before we begin, I would like to point out that some of the statements made during today's call may be forward-looking. A disclaimer to that effect was included in the earnings presentation. I would like to invite Mr. Sikka to share his remarks.
Hemant Sikka
Thank you, Mandar. Good afternoon, and thank you all for joining us today. FY '26 has been a defining year for Mahindra Logistics. After 2 years of losses, our return to PAT profitability marks more than a milestone. It signals the successful reset of organisation's operating engine. This transformation has been driven by deliberate choices, disciplined execution and rebuilding of fundamentals that will sustain performance over the long term. Over the past year, sharper leadership focus has re-energized the organization, strengthened strategic clarity and raised the bar on operational rigour. Together, we have embedded accountability across levels and cultivated a performance culture anchored in measurable outcomes and delivery excellence. What began as a structural shift has now translated into visible, measurable improvement on the ground. Three defining themes capture our progress this quarter and throughout the last year. A stronger high-quality contract logistics portfolio with mu
Isha Dalal
Thank you, Hemant. Let me now give you all a brief on the consolidated financial performance for Q4 and F26. Our revenue for Q4 F26 has grown by 14% year-on-year to INR1,791 crores and by 15% in the full year to INR6,999 crores. Our anchor customer, M&M, has grown very well on the back of higher volumes. And in addition, we have seen strong growth across all our subsidiaries, led by the Express business. Supply Chain Management, including our 3PL and network services business, which is Freight Forwarding, Express and Last Mile, contributed 94% of our overall revenue and the Mobility business has contributed 6% of revenue for Q4 and for FY26. This is broadly in line with historical segment mix. On the back of many initiatives that Hemant referred to, including operational discipline and financial rigour, we have seen a year-on-year expansion in consolidated gross margin to 10.5% in Q4 F26 compared to 9.5% in Q4 F25. For the full year, the gross margins stood at 10.0% compared to 9.4% in
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