Mahindra Logistics Ltd

RSU allotment and capital change

• Stakeholders' Relationship Committee approved allotment of 54,919 equity shares on RSU exercise.
• Capital after allotment equals Rs 99,27,74,020 comprising 9,92,77,402 fully paid shares.
• RSU shares rank pari passu with existing equity shares and pay dividends.
• Share application money received for exercise total Rs 5,49,190.
• Date of allotment and approval: 24 August 2026 at 14:47 IST.

ESG rating update

• ESG score 68 assigned by ESG Risk Assessments & Insights Limited under 'Strong' category.
• Rating received on 27 July 2026 at 6:29 p.m. IST.
• Agency prepared report independently; Mahindra Logistics did not engage the rating agency.
• Based on FY2025-26 data publicly available; report is voluntary.
• Intimation uploaded on the company's website.

Financial Performance

• Revenue rose 23% YoY to INR 2,003 crores.
• PAT at INR 25.4 crores, vs INR -10.8 crores in Q1 FY26.
• Gross margin 9.7%, up 28 bps YoY.
• Adjusted EBITDA 57 crores, up 76% YoY.
• PAT includes INR 4 crores interest on income tax refund; non-recurring.
• Mobility contributed 6% of revenue; SCM and related services the rest.
• Express EBITDA break-even target for the year.

Segment Trends

• Contract Logistics revenue INR 1,623 crores; up 26% YoY.
• Contract Logistics gross margin down 46 bps YoY.
• EBITDA up 31% YoY; margin 6.9%.
• Last Mile Delivery revenue down 16% YoY; GM 5% to 9%.
• Freight Forwarding revenue INR 45 crores; down 39% YoY; gross margin 10%; EBITDA positive.
• Express revenue INR 152 crores; up 58% YoY; EBITDA loss narrowed to INR 1.6 crores.
• Mobility revenue INR 111 crores; up 38% YoY; GM up 2%.

Capacity and White Space

• White space reduced from 1.6 million sq ft last year; 95% reduction target by Sep 2026.
• Overall warehousing space higher; depreciation linked to Ind AS 116 due to new warehouses.

Outlook and Guidance

• Express: target EBITDA breakeven this financial year.
• Ramp-up costs in Q1 drove near-term margin dilution; expected to normalise.
• Fuel escalation pass-through achieved with ~80% passed; rest under negotiation.
• Airport mobility focus: Noida airport scaling; Mumbai airport withdrawal.

Q&A Highlights

• Mahindra wallet share around 60%; no target to reduce; pursue non-Mahindra growth.
• New customer wins exceeded internal plan; governance and solutioning cited.
• Express yield versus volume discussed; aim for EBITDA breakeven, not volume-only.
• Lane utilization is operational; multiple levers to improve profitability.
• Airport mobility scale planned where rights exist; Mumbai withdrawal due to threshold.
• ROCE guidance not provided; balance sheet ROCE to be shared in H1.

Risks and Watchpoints

• Q1 start-up costs and ramp-up take 3–4 months; margin pressures.
• Manpower shortages in Q1; wage revisions causing costs.
• Fuel-cost pass-through slower for some contracts; 80% passed.
• Geopolitical disruptions affecting Freight Forwarding; attrition and client losses.
• High Mahindra concentration; management aims to win more non-Mahindra clients.

Financial highlights and strategic updates

• AGM presentation to be delivered at the 19th AGM on 20 July 2026.
• FY2025-26 revenue ₹6,999 crore, up 15% YoY.
• PAT positive at ₹2.3 crore after two financial years.
• EBITDA ₹376 crore, up 33% YoY.
• Rights issue of ₹749 crore announced.
• Group revenue ₹5,490 crore, +16% YoY.
• Contract Logistics revenue ₹449 crore, +25% YoY.
• Express Services revenue ₹348 crore, +14% YoY.
• Last-Mile Delivery revenue ₹386 crore, +22% YoY.
• Alyte Privé launch; premium tech-enabled mobility service.

Issue overview

• Rights issue of equity shares.
• Total issue size disclosed; no revision or undersubscription noted.
• Objectives: debt repayment and general corporate purposes.

Utilisation of proceeds

• Utilisation aligned with disclosures; no material deviations observed.
• Repayment of borrowings: fully utilised; no idle funds.
• General corporate purpose: ₹13.60 crore used; ICDs extended to subsidiary.
• Issue-related expenses: ₹4.57 crore utilised; no delay.
• Unutilised proceeds: ₹72.40 crore parked in fixed deposits.

Governance and compliance

• Board approvals obtained for ICD extension; no material deviations.
• No material events affecting viability reported.
• CA certificate verified by Deloitte Haskins & Sells LLP.
• No conflicts of interest disclosed; MA confirms objectivity.

General Corporate Purpose (GCP)

• GCP utilised: ₹3.82 crore for ICDs to subsidiary.
• GCP utilised: ₹9.78 crore for capex payments to vendors.
• Board approvals obtained for ICD allocations; usage aligns with objects.
• GCP cap up to ₹186.77 crore; planned deployment FY26–FY27.
• Total GCP utilised so far: ₹13.60 crore.

Business overview

• Integrated logistics provider with Contract Logistics, Express, Last Mile, Freight Forwarding, Mobility segments.
• Operations across 600+ locations, 19 mn sq ft warehousing, 1,100 trucks, 1,200 EVs.
• Strategic focus on profitable growth, tech-led operations, and Express turnaround.

Operational highlights

• Contract Logistics revenue ₹1,623 cr, +26% YoY; gross margin ₹166 cr.
• Express revenue ₹152 cr, +58% YoY; gross margin turnaround to ₹9.2 cr.
• Mobility revenue ₹111 cr, +38% YoY; Noida airport taxi pilot expanding B2C offerings.
• Last Mile revenue ₹71 cr; gross margin ₹6.3 cr, +62% YoY.
• Total 1,100 line-haul trucks; 220 processing centers; 19 million sq ft warehousing.

Financial performance

• Total revenue ₹2,002.9 cr, up 12% QoQ and 23% YoY.
• Reported EBITDA ₹115.4 cr; EBITDA margin 5.8%.
• GM ₹194.5 cr; GM margin 9.7%.
• PAT after JV ₹25.4 cr; PAT margin 1.3%.

Strategic priorities & outlook

• Express turnaround and profitability-focused growth strategy.
• Tech as differentiator; AI use-cases; scaling contract logistics.
• Focus on profitable customer mix and lane utilization.

Risks & governance

• Forward-looking statements caution; macro and logistics sector risks.
• Management emphasises disciplined execution and operational excellence.

Leadership

• Hemant Sikka, MD & CEO, comments on momentum.

Financial and operating highlights

• Revenue Rs 2,003 crore; up 23% YoY and 12% QoQ.
• EBITDA Rs 115 crore; up 51% YoY and 3% QoQ.
• PAT Rs 25.4 crore; EPS Rs 2.55; vs Rs (10.8) cr Q1 F26 loss.
• Contract Logistics revenue up 26% YoY; EBITDA up 31%.
• Express business revenue up 58% YoY; EBITDA margin improved.
• Last Mile Delivery EBITDA Rs 2.6 cr; degrew 16% YoY.
• Mobility revenue up 38% YoY; EBITDA up 8%.
• Warehouse space under management 21.9 million sq ft; +1.52 million QoQ.

Appointment of Internal Auditor

• Board approved appointment of Mr. Vimal Agarwal as Internal Auditor, effective 20 July 2026.
• Appointment based on Audit Committee recommendation under SEBI Listing Regulations.
• Mr. Agarwal is a Chartered Accountant and MBA with 25 years’ experience.
• Previous roles include CFO at Mahindra Lifespaces and Mahindra Holidays & Resorts.
• Currently Group Chief Internal Auditor of Mahindra & Mahindra Limited.
• Annexure-A provides required SEBI Listing Regulations disclosures.