This article first appeared on GuruFocus .
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Revenue:Increased by 19% year-on-year to INR 1,898 crores for Q3 FY '26.
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Warehousing Revenue:INR 345 crores in Q3 FY '26, up by approximately 15% from INR 300 crores in Q3 FY '25.
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Gross Margin:Expanded by 76 basis points to 10% in Q3 FY '26 from 9.2% in Q3 FY '25.
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EBITDA:Grew by 40% year-on-year to INR 102.8 crores from INR 74 crores in Q3 FY '25.
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Reported PAT:INR 3.3 crores for the quarter.
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Operational PAT:INR 9.2 crores after adjusting for exceptional items.
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3PL Revenue:INR 1,502 crores, up by 20% from INR 1,255 crores in Q3 FY '25.
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Freight Forwarding Revenue:INR 94.8 crores, up by 33% from INR 71.5 crores in Q3 FY '25.
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Express Business Revenue:INR 113.6 crores, up by 27.5% from INR 89.1 crores in Q3 FY '25.
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Mobility Business Revenue:INR 110.7 crores, up by 42% from INR 78.1 crores in Q3 FY '25.
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Last Mile Business Revenue:INR 82 crores, down from INR 103 crores in Q3 FY '25.
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Auto Business Contribution:62% of total revenue.
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Non-Auto Business Contribution:38% of total revenue.
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Mahindra Business Contribution:58% of total revenue.
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Non-Mahindra Business Contribution:42% of total revenue.
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Release Date: January 28, 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 ) turned profitable after 11 consecutive quarters of losses, indicating a successful turnaround.
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The company reported a 19% year-on-year increase in Q3 revenue, driven by strong volume growth in the auto and farm business.
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Gross margins expanded by 76 basis points to 10% in Q3, reflecting improved pricing discipline and cost management.
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The Freight Forwarding business saw a 33% year-on-year revenue growth, supported by improved trade flows and a diversified customer base.
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The Mobility business experienced a 38% year-on-year revenue growth, with a focus on improving asset utilization and launching a premium B2B offering.
Negative Points
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The Last Mile Delivery business faced revenue and gross margin declines due to pricing pressures and strategic decisions to exit certain sites.
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Despite high volume growth in the Express business, the EBITDA has not moved significantly, indicating ongoing challenges in achieving profitability.
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The company continues to face pricing pressures in the Last Mile Delivery segment, impacting profitability.
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Mahindra Logistics Ltd ( NSE:MAHLOG ) has not yet achieved EBITDA breakeven in the Express business, although it is reportedly close.
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The company is still halfway through its price correction efforts across its customer base, indicating ongoing challenges in aligning pricing with service value.
Q & A Highlights
Q: What led to the strong volume growth in the Express business, and is it sustainable? A: Hemant Sikka, Managing Director and CEO, explained that the volume growth was driven by better execution, improved customer engagement, and enhanced service levels. The growth is not attributed to one-off factors like GST rate cuts, and the company believes the volume is sustainable with potential for further improvement.
Q: How is the Mahindra Group's contribution to revenue changing, and what sectors are driving growth in the 3PL business? A: Isha Dalal, CFO, noted that Mahindra Group's contribution was slightly higher this quarter at 58%. Growth in the 3PL business is driven by both Mahindra's auto and farm sectors and other verticals like consumer and manufacturing, with new customer additions contributing to the growth.
Q: What is the status of the white space reduction initiative, and is the company on track to meet its targets? A: Hemant Sikka confirmed that the company is on track to reduce white space by 95% by September 2026. While specific reduction figures are not disclosed to avoid pricing pressure, the company is slightly ahead of its glide path.
Q: Can you provide insights into the pricing scenario in the 3PL and Express segments, and how is the company handling pricing pressures? A: Hemant Sikka stated that while there is no significant pricing pressure in most segments, the last mile delivery business continues to face challenges. The company is actively renegotiating prices where services are undervalued and is willing to exit unprofitable engagements.
Q: What is the outlook for the Freight Forwarding business, and are there any one-off factors affecting growth? A: Isha Dalal clarified that the growth in the Freight Forwarding business is organic, driven by volume increases from key customers, with no one-off factors influencing the results.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
