Mahindra Logistics (NSE:MAHLOG), one of India’s leading integrated logistics service providers, offering end-to-end solutions across contract logistics, freight forwarding, B2B express, last-mile delivery, and mobility services. Part of the Mahindra Group, the company serves marquee clients across automotive, FMCG, e-commerce, industrial, and consumer sectors, with a pan-India footprint and expanding global trade lanes.
The company reported a strong turnaround in the third quarter ended December 31, 2025, marking its first profitable quarter after 11 consecutive loss-making quarters, driven by tighter execution, cost discipline, and selective growth.
Key Financial Highlights
- Revenue rose 19% year-on-year to ₹1,898 crore, supported by broad-based growth across core logistics segments.
- EBITDA increased 39% YoY to ₹102.8 crore, with the EBITDA margin improving to 5.4% from 4.6% a year ago.
- Profit after tax (PAT) stood at ₹3.3 crore, compared with a loss of ₹9.0 crore in Q3 FY25. Excluding the one-time statutory impact of new labour codes, underlying profitability showed a meaningful recovery.
- Gross margin expanded 28% YoY to ₹189.1 crore, reflecting improved pricing discipline and productivity gains.
Management highlighted that decisive actions such as exiting unviable contracts, leadership stabilization, and network optimization were key contributors to the turnaround.
Nine-Month Performance: Recovery Still in Progress
For the nine months ended December 2025, the company delivered steady topline growth, though profitability remained impacted by legacy cost structures.
- Revenue increased 15% YoY to ₹5,207.9 crore.
- EBITDA grew 28% to ₹264.1 crore, with margins improving to 5.1% from 4.5%.
- PAT remained negative at ₹17.9 crore, though losses narrowed significantly from ₹29.1 crore in the corresponding period last year.
The improving margin trajectory indicates that operational restructuring is beginning to yield results.
Segment Performance Highlights
- Contract Logistics (3PL) remained the largest contributor, reporting Q3 revenue of ₹1,502 crore, up 20% YoY, supported by growth in auto, farm equipment, and FMCG volumes.
- B2B Express delivered strong momentum, with revenue growth of 30% YoY, aided by better lane utilisation and cost rationalisation.
- Freight Forwarding posted 33% YoY revenue growth, despite softness in global freight rates.
- Mobility Services recorded 38% YoY growth, driven by fleet expansion, EV adoption, and premium airport mobility demand.
- Last-mile delivery continued to face industry-wide pricing pressure, resulting in YoY revenue decline.
Industry Relevance and Outlook
India’s logistics sector is undergoing structural transformation, supported by Gati Shakti, the National Logistics Policy, infrastructure spending, e-commerce growth, and rising 3PL penetration. With India’s logistics market expected to grow at 10–12% CAGR, Mahindra Logistics is well positioned to benefit from increasing demand for integrated, technology-enabled supply-chain solutions.
Management said the focus remains on profitable growth, margin discipline, and building a high-quality revenue base, with early signs indicating that the turnaround momentum could sustain into the coming quarters.