This article first appeared on GuruFocus .
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Q4 Revenue Growth:14% year-on-year to INR1,791 crores.
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Full Year Revenue:Increased by 15% to INR6,999 crores.
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Contract Logistics Q4 Revenue Growth:12% year-on-year to INR1,381 crores.
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Express Business Q4 Revenue Growth:49% year-on-year.
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Freight Forwarding Q4 Revenue Growth:17% year-on-year.
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Mobility Business Q4 Revenue Growth:39% year-on-year.
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Gross Margin Q4:Expanded to 10.5% from 9.5% in the previous year.
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Adjusted EBITDA Q4:INR57 crores, up from INR37 crores in Q4 F'25.
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Consolidated PAT Q4:INR20.2 crores versus a loss of INR6.7 crores in Q4 F'25.
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Last-Mile Delivery Q4 Revenue Decline:18% year-on-year to INR72 crores.
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Release Date: April 24, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Mahindra Logistics Ltd ( NSE:MAHLOG ) returned to PAT profitability after two years of losses, marking a significant turnaround.
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The company reported a 14% year-on-year revenue growth for Q4 FY26, reaching INR 1,791 crores.
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The Express business showed a 49% year-on-year revenue growth in Q4, with improvements in service quality and unit economics.
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Contract logistics revenue grew by 12% year-on-year in Q4, with gross margins increasing by 19%, indicating operational efficiency.
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The e-commerce and quick commerce business scaled significantly, reaching over INR 1,000 crores in annual revenue, reinforcing the company's position in fast-growing segments.
Negative Points
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The Freight Forwarding segment is facing headwinds due to evolving geopolitical conditions, which may persist in the near term.
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The last-mile delivery business saw a revenue decline due to strategic choices, although gross margins improved.
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The Express business, while showing improvement, remains loss-making at an EBITDA level, with a loss of INR 31 crores.
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The company is closely monitoring the dynamic environment shaped by geopolitical developments and inflationary pressures, which could impact future performance.
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There is a concern about potential inflationary impacts on the economy if diesel prices rise significantly, which could affect certain sectors Mahindra Logistics operates in.
Q & A Highlights
Q: What is the expected growth for the Express business, and can we expect mid-teens growth over the medium term? A: Hemant Sikka, Managing Director and CEO, stated that mid-teen growth is possible for the Express business. However, he emphasized that volume growth alone does not provide a complete picture, as yield improvements are also crucial. The company has been focusing on cleaning up non-profitable volumes to enhance overall business performance.
Q: How does the company plan to achieve break-even in the Express business, and what role does technology play? A: Hemant Sikka mentioned that becoming EBITDA positive is an immediate goal for the Express business. The company is close to achieving this milestone. On the technology front, Mahindra Logistics employs a strong tech backbone and plans to invest further in technology in FY27 to support business operations.
Q: What are the key levers for improving margins in the Express segment and overall business? A: Hemant Sikka explained that the company has focused on improving yields, enhancing customer experience, and closely monitoring costs across various elements such as pickup, linehaul, and warehousing. These efforts have contributed to gross margin improvements and are expected to drive further profitability.
Q: How is the company addressing the impact of geopolitical issues, such as the West Asia war, on its operations? A: Hemant Sikka noted that the Freight Forwarding business is facing headwinds due to the West Asia war, affecting global trade and shipping lines. However, other segments, including Express and 3PL, have not been significantly impacted. The company is monitoring the situation closely.
Q: What is the company's strategy for the last-mile delivery business, and is further pruning expected? A: Hemant Sikka confirmed that all necessary pruning in the last-mile delivery business was completed in FY26. The focus is now on growing profit-making clients, and the business has shown significant improvement in profitability metrics over recent quarters.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
