Q2 FY27 · NSE: MAHLOG

Mahindra Logistics

Results filed 23 October 2026 · Market cap ₹4,090 crore · PE 53.8

TurnaroundGuidance maintainedTranscript read

Revenue: +24.3%; on a year ago
EBITDA: +45.7%; on a year ago
Profit to shareholders: Back to profit; from a loss a year ago
EBITDA margin: 5.9%; +0.2 pts on last quarter

Mahindra Logistics reported strong Q2 FY27 revenue growth of 24.3% YoY to ₹2,095 crore and turned net profitable with PAT of ₹26.2 crore. Operating performance was highlighted by the express business (Rivigo) turning EBITDA-positive at ₹2.3 crore and contract logistics whitespace dropping to 5% of base levels. However, customer concentration in M&M remains elevated at around 60%, and freight forwarding experienced a 44% YoY revenue decline.

Mahindra Logistics Limited, Q2 FY27₹ crore, consolidated

	Q2 FY27	Q1 FY27	vs previous quarter	Q2 FY26	vs a year ago
Revenue	2,095	2,003	+4.6%	1,685	+24.3%
Operating profit (EBIT)	47.38	43.11	+9.9%	13.36	+254.6%
Operating margin	2.3%	2.2%	+11 bps	0.8%	+147 bps
Other income	8.42	9.83	−14.3%	2.94	+186.4%
Exceptional items	0	0	–	0	–
Profit before exceptional items and tax	40.36	39.11	+3.2%	−5.37	n.m.
Profit to shareholders	26.25	25.39	+3.4%	−10.35	n.m.
Share of joint ventures' and associates' profit	−0.06	−0.05	n.m.	−0.04	n.m.
Earnings per share (₹)	2.64	2.56	+3.1%	-1.20	n.m.

Source: Mahindra Logistics Limited’s filing to NSE, 23 October 2026. Operating profit is revenue less every expense except interest, so it leaves out other income and exceptional items. n.m.: not meaningful, because the earlier figure was zero or negative, or the latest one is a loss.

What stood out

MESPL (Rivigo B2B express business) achieved positive EBITDA for the first time since acquisition.
Source
MESPL EBITDA turned positive at ₹2.3 crore in Q2 FY27 compared to a loss of ₹9.1 crore in Q2 FY26, with revenue expanding 69% YoY to ₹169 crore (Transcript page 3-4, 6; Presentation page 6, 21).
Consolidated PAT turned around sharply to ₹26.2 crore from a net loss of ₹10.4 crore in Q2 FY26.
Source
Reported PAT after JV and NCI reached ₹26.2 crore vs a loss of ₹10.4 crore in Q2 FY26; H1 FY27 PAT stood at ₹51.6 crore vs a loss of ₹21.2 crore in H1 FY26 (Presentation page 14-15).
Completion of warehouse whitespace reduction target.
Source
Management confirmed that vacant space has now been reduced to just 5% of June 2025 levels, completing the 95% reduction commitment on 1.6 million sq. ft. of whitespace (Transcript page 4).
Significant cash flow turnaround and return profile expansion in H1 FY27.
Source
Generated free cash flow of ₹52 crore in H1 FY27 vs negative ₹210 crore in H1 FY26; ROCE improved to 12.9% from 1.7% and ROE improved to positive 8.7% from negative 5.3% (Transcript page 5).

Guidance

Metric	Guidance	Period
Gross Margin expansion Source Transcript page 11, 17: 'we are looking overall for a 100 bps improvement in our gross margin... over the medium term. Medium term... does not mean two quarters, four quarters. It will take time.'	100 bps improvement from exit of last financial year over the medium term	Medium term
Capex spend Source Transcript page 12: 'Capex spending will be as per our guidance that we gave, it will be closer to like INR100 crores kind of a number, plus minus INR10 crores here and there... In H1, we have spend almost half the amount.'	Around ₹100 crore to ₹110 crore	FY27
MESPL / Rivigo target Source Transcript page 3-4, 7: 'The mandate ahead is clear for MESPL team to convert EBITDA momentum into achieving PAT positivity.'	Clear line of sight to achieve PAT positivity	Next few quarters
Last Mile Delivery growth Source Transcript page 5: 'our strategic portfolio recalibration was largely done during Q3 of F '26. Hence, we expect that as we enter the quarter three of this financial year, we will once again witness a year-on-year growth.'	Return to YoY revenue growth starting Q3 FY27	Q3 FY27 onwards

Maintained annual capex target of ₹100-110 crore and medium-term 100 bps gross margin improvement target.

Tailwinds

Strong top-line momentum in Contract Logistics led by Auto anchor customer.
Source
Contract logistics revenue grew 28% YoY to ₹1,688 crore, with EBITDA growing 29% YoY to ₹115 crore (Transcript page 4, 5; Presentation page 19).
Yield improvement and operational discipline in Express (MESPL).
Source
Turnaround to EBITDA of ₹2.3 crore in Q2 FY27 driven primarily by yield enhancements and selective account calibration actions rather than pure volume (Transcript page 6, 9).
Full pass-through of previous quarter fuel cost pressures.
Source
Transcript page 8: 'our fuel pass-through has happened in totality. Whatever was the fuel stress in the previous quarter, that has been completely passed on.'
Profitable growth pivot in Mobility and Last Mile Delivery.
Source
Mobility revenue rose 33% YoY to ₹119 crore with gross margins up 19% YoY; Last Mile Delivery gross margins grew 18.6% YoY to ₹5.3 crore as low-margin unprofitable volume was pruned (Transcript page 4, 6; Presentation page 19).

Headwinds

Sharp top-line drop in Freight Forwarding due to geopolitical disruptions and leadership transition.
Source
Freight forwarding revenue declined 43.9% YoY to ₹50.6 crore, impacted by customer attrition during leadership change and prohibitive container spot freight rates (Transcript page 6, 14-15; Presentation page 19).
Unabsorbed manpower cost inflation and statutory wage/PF increases.
Source
Transcript page 8: 'manpower cost is still not fully passed through... the government has brought in terms of provident fund - the slab has been changed from INR15,000 to INR25,000 rupees, and there are few more changes happening.'
Temporary cost drags from pre-festive flex-site capacity build-ups.
Source
Transcript page 9: flex sites added for e-commerce and last-mile delivery ahead of the festive season come at higher initial hiring and training costs with short lead times (3-4 days' notice).

New businesses and products

other · Board approval received

Enterprise-wide Tech Platform & Business Transformation Project

Expected benefit: Unified single platform across PTL and FTL/warehousing, process automation, end-to-end load visibility for clients, deployment of agentic-AI use cases, and reduced manual operational costs.
Risks: Execution timelines and phased implementation complexities across different business verticals.
Timeline: Execution begins around Q4 FY27 in phases (starting with transportation in contract logistics, followed by MESPL, and later warehousing).
Investment: Not disclosed (management stated the capex got approved by the Board on call day but called it a 'very frugal tech transformation' and declined to disclose exact spend).

Source

Transcript page 10-11: 'our capex spend has got approved today in the Board meeting... treating this as a business transformation project... execution of the project... will still be somewhere around like quarter 4 of this year.'

Things to check

High customer concentration with M&M and reversal of diversification targets.
Source
M&M accounts for roughly 60% of total consolidated revenue; management explicitly confirmed there is no longer any internal target to reduce M&M's share of the business, aiming instead for 100% wallet share (Transcript page 17-18).
Severe revenue drop and customer attrition in Freight Forwarding.
Source
Freight forwarding revenue dropped 43.9% YoY to ₹50.6 crore due to leadership transition-related client churn and spot freight volatility (Transcript page 6, 14-15; Presentation page 19).

How the call went

Management was transparent regarding operational turnarounds in Rivigo and whitespace reduction, but guarded regarding specific tech capex figures and precise timelines for margin improvement targets.

Specific or vague: Management provided detailed segment breakdowns, EBITDA bridges, and specific updates on whitespace resolution and fuel pass-through.
Candour: Management was frank about ongoing manpower cost absorption challenges, 44% YoY collapse in freight forwarding, and customer attrition during management transition.
The hard questions: Analysts probed on when the 100 bps gross margin improvement would materialize, why contract logistics gross margin did not expand more sequentially, capex on the new tech platform, and the 60% revenue concentration in M&M.

What analysts pressed on

Timeline and realizability of the 100 bps gross margin expansion target.
High and persistent customer concentration with parent group M&M (~60% share).
Low single-digit operating margins in Mobility, Last Mile Delivery, and Freight Forwarding.
Capital deployment scale and timeline for the newly approved technology overhaul.

Answers that sidestepped

Hemant Sikka refused to disclose any capex budget figures for the newly approved IT platform, terming it 'frugal' and not wanting to share numbers publicly (Transcript page 10).
Management refused to commit to any concrete timeline for the 100 bps gross margin improvement, reiterating vaguely that 'medium term does not mean two quarters, four quarters' (Transcript page 17).

Numbers against the story

The turnaround narrative is backed by reported numbers: consolidated EBITDA grew 45.7% YoY to ₹124 crore, and MESPL achieved its maiden positive EBITDA (₹2.3 crore). However, the narrative of broad-based diversification contrasts with the numbers showing continued high dependency on M&M (~60% of revenue) and a 44% YoY drop in Freight Forwarding.

Sources

Concall transcript · filed 27-Oct-2026
Investor presentation · filed Oct
Figures: the company’s results filing with NSE, linked under the table.

Notes written by gemini-3.8-flash from the documents above on 1 November 2026. They summarise what the company said and can contain mistakes: check the source passage before relying on a point. Not investment advice.