Mahindra Logistics Q1 FY27: Profit Turns Positive at ₹25.4 Crore, Revenue Up 23%
Mahindra Logistics Limited reported Q1 FY27 PAT of ₹25.4 crore, a turnaround from a ₹10.8 crore loss in Q1 FY26. Revenue grew 23% YoY to ₹2,003 crore. Key segments like Contract Logistics (+26% revenue) and B2B Express (+58% revenue, margin improvement) showed strong performance. Management is confident in achieving EBITDA breakeven for the Express business this fiscal year.
The substantial improvement in profitability, turning from a loss to a profit, and strong revenue growth across core segments indicate a significant positive impact on the company's financial health and market perception.
The company reported a significant turnaround in profitability, with PAT turning positive and revenue showing strong year-on-year growth. Several key business segments demonstrated positive momentum and strategic improvements.
Mahindra Logistics Limited has reported a significant turnaround in its first quarter of FY27, with Profit After Tax (PAT) turning positive at ₹25.4 crore, a substantial improvement from a PAT loss of ₹10.8 crore in Q1 FY26. The company's consolidated revenue saw a robust year-on-year growth of 23%, reaching ₹2,003 crore.
The company attributed this performance to the successful execution of its transformation strategy, focusing on strengthening its operating model, enhancing execution capabilities, and maintaining discipline with a strong customer focus. Key business segments demonstrated positive momentum. The Contract Logistics business revenue grew by 26% year-on-year, driven by strong performance in the M&M auto and farm businesses, as well as growth in other 3PL verticals including e-commerce. The B2B Express business (MESPL/Rivigo) showed a remarkable turnaround, with revenue growing by 58% year-on-year and gross margins improving significantly from a loss of ₹3.6 crore in Q1 FY26 to a profit of ₹9.2 crore in Q1 FY27. The Mobility business also reported a healthy revenue growth of 38% year-on-year.
Despite these positive trends, the Last Mile Delivery (LMD) business experienced a revenue degrowth of 16% year-on-year, which was a conscious strategic choice to prioritize profitable business over low-margin operations. The Freight Forwarding business faced challenges, with revenue declining by 39% due to customer attrition and geopolitical factors, though it maintained a healthy gross margin. Management expressed confidence in the ongoing transformation journey evolving into a growth journey, with a clear vision to be India's number one logistics service provider through technology-led solutions and a passionate team.
The company's financial performance also saw an improvement in EBITDA, which rose to ₹115 crore from ₹76 crore in the same quarter last year. Adjusted EBITDA also saw a significant increase of 76% to ₹57 crore. Management reiterated their focus on scaling the core business profitably, strengthening the Express Logistics network, improving asset utilization, and leveraging technology for productivity and customer experience.
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