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Informist, Tuesday, Jul. 21, 2026

 

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--Mahindra Logistics: Focus remains on achieving EBITDA breakeven 
--CONTEXT: Mahindra Logistics' mgmt comments in post-earnings anaylst call 
--Mahindra Logistics: On track to reduce wide space by 95% by Sept qtr end 
--Mahindra Logistics:M&M auto, farm vertical led contract logistics growth Q1 
--Mahindra Logistics: Aim to turn EBITDA positive in express segment in FY27 
--Mahindra Logistics: Withdrawing airport taxi business in Mumbai 
--Mahindra Logistics:Doubling down on airport taxi business at Delhi airport

 

By Nandini Sinha and Ruchira Kagita

 

MUMBAI – Mahindra Logistics Ltd. expects gross margin to normalise in 2026-27 (Apr-Mar), the company's management told analysts at a post-earnings conference call Tuesday. "...the business has faced some headwinds (during June quarter) driven by manpower shortages, site ramp-up and minimum wage revisions, resulting in some margin compression," the management said. Rising fuel costs also impacted the margins, the management said.

 

Reverse migration due to a shortage of liquefied petroleum gas cylinders led to the company to hire ad hoc employees, which has largely streamlined again, the management said.

 

The management is also working towards achieving break-even in the express segment's earnings before interest, taxes, depreciation, and amortization. "...we are continuing our trajectory of improvement in both volumes and yield," a senior official at the company said.  

 

 

The growth in the contract logistics business was driven by the continued strong momentum in the Mahindra and Mahindra auto and farm businesses and growth in the other three-party verticals, including e-commerce, the management said during the conference call with analysts. "Since we are a very significant part of Mahindra's logistics game, when Mahindra's auto and tractor business does so well, obviously that has a very big tailwind for us. So, we will benefit from that," the management said. Revenue from contract logistics for the June quarter was up nearly 26% on year at INR 16.23 billion.

 

Rain-led seasonality may impact the run rate in the express segment in the September quarter. The express segment revenue for the June quarter stood at INR 1.52 billion, up nearly 58% on year and nearly 10% on quarter.

 

"...if the rains are very heavy, then it leads to some kind of business operating issues. That can lead to some kind of small here and there in quarter two (Jul-Sept)," a senior company official said. However, that impact is generally offset by the festival demand in Oct-Dec, the official added. 

 

On the business-to-customer side, the company is focusing on stabilising and building the recently launched airport taxi business at the Noida International Airport, the management said. However, the company is being very cautious in the scale-up of the vertical. The mobility segment, which includes airport taxi business, reported an EBITDA of INR 25 million in the June quarter, up nearly 8% on year.

 

"...our current strategy is to focus on airports where it is a profitable business for us," the management said. The company is withdrawing from Mumbai airport and doubling down on the Delhi airport. "...in Noida airport, we are the preferred taxi partner of the Noida airport," the management said.

 

The company is on track to achieve its glide path of reducing wide space by 95% by September, the management said. "In Q1 of last year, we had said that whatever wide space we had at that point in time, which was 1.6 million square feet, we will reduce it by 95%. We are firmly on track to achieve that," the management said.

Mahindra Logistics announced its financial results Monday. For the June quarter, Mahindra Logistics reported a consolidated net profit of INR 253.9 million, a turnaround from a loss of INR 108 million in the year-ago quarter. On a sequential basis, the bottom line grew 26%. Tuesday, shares of the company ended marginally down at INR 391.15 apiece on the National Stock Exchange.  End

 

Edited by Akul Nishant Akhoury

 

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