Mahindra Logistics Q2 FY27 Results Show Profit Recovery as Express Business Improves

Summary

Mahindra Logistics reported consolidated revenue of ₹2,095 crore and profit after tax of ₹26.2 crore for the September quarter, reversing a year-earlier loss. Contract logistics and mobility expanded, while the express business achieved its first EBITDA-positive quarter since acquisition, strengthening the company’s broader operational recovery.

Revenue growth supports stronger earnings

Mahindra Logistics Q2 FY27 results showed a 24% year-on-year increase in consolidated revenue for the quarter ended 30 September 2026.

Revenue also increased approximately 5% sequentially. EBITDA rose 46% from a year earlier to ₹124 crore, with the EBITDA margin expanding by 90 basis points to 5.9%.

Diluted earnings per share reached ₹2.64, compared with a loss per share of ₹1.20 in the corresponding quarter and earnings of ₹2.55 in Q1 FY27.

The results, announced on 23 October, also showed first-half return on capital employed improving to 12.9%, against 1.7% a year earlier.

The ₹26.2-crore profit compares with a consolidated loss of ₹10.35 crore in Q2 FY26. The appropriate year-on-year comparison is therefore a return to profit, rather than growth from an already profitable base.

Contract logistics and express drive momentum

Contract logistics revenue increased 28% year on year, supported by higher volumes from major customers, including Mahindra & Mahindra’s automotive business.

The company said EBITDA increased broadly in line with revenue, reflecting contract selection, operating efficiencies and cost control.

The express business, operated through MLL Express Services Private Limited, recorded 69% year-on-year revenue growth and an 11% sequential increase. It achieved its first EBITDA-positive quarter since acquisition.

Management attributed the improvement to higher volumes, better yields and attention to unit economics. The milestone indicates progress in operating performance, although EBITDA positivity should be distinguished from profitability after depreciation, financing costs and tax.

Other businesses contribute to recovery

Last-mile delivery generated quarterly revenue of ₹68 crore. Its EBITDA increased to ₹1.6 crore from ₹0.4 crore a year earlier, with the company prioritising margins and business quality.

Mobility revenue grew 33% year on year, supported by additional business-to-business customers, alongside margin expansion.

Freight forwarding recorded 12% sequential revenue growth and improved profitability.

Managing Director and Chief Executive Officer Hemant Sikka attributed the wider performance to execution, operating discipline and a focus on profitable growth. Management also highlighted progress in reducing unused warehousing space.

Together, these developments suggest that the recovery extends across several operating businesses, rather than depending entirely on one service line. The growth rates nevertheless use different comparison periods and should be read accordingly.

June quarter had established an improved base

The September performance follows a profitable first quarter.

For Q1 FY27, Mahindra Logistics reported revenue of approximately ₹2,003 crore, EBITDA of ₹115 crore and profit after tax of ₹25.4 crore.

Contract logistics had grown 26% year on year, while express revenue increased 58%. At that stage, the express business had recorded successive improvements in gross margin and EBITDA but had not yet reached the quarterly EBITDA milestone subsequently reported.

The company’s warehouse space under management stood at 21.9 million square feet at the June-quarter reporting point. That figure included additions for specific customers and should not be treated as an updated September-quarter footprint.

The earlier results provide context for the latest improvement: revenue expanded further while quarterly profit remained positive.

Express turnaround follows earlier acquisition

The express business’s progress has a longer operational background.

Mahindra Logistics’ wholly owned subsidiary completed the acquisition of Rivigo’s business-to-business express operations in November 2022.

The acquired business brought a nationwide network of more than 250 processing centres and branches, covering over 1.5 million square feet, together with technology and process capabilities.

That acquisition expanded the company’s express network. Turning the enlarged operation into a consistently profitable business has required subsequent attention to volumes, pricing and operating costs.

Sustaining profitability becomes the next test

The September results strengthen evidence of recovery, particularly through higher operating earnings and improved capital returns.

For the business, the next challenge is to retain service quality and customer relationships while sustaining margins as volumes grow. Express operations will need to preserve improved unit economics, while contract logistics must balance new business with effective capacity utilisation.

The quarter establishes measurable progress. Subsequent periods will show whether those improvements can be maintained across changing demand and cost conditions.

FAQs

What was Mahindra Logistics’ quarterly revenue?

Consolidated revenue was approximately ₹2,095 crore, up 24% year on year.

What profit did the company report?

Profit after tax was ₹26.2 crore, compared with a ₹10.35-crore loss a year earlier.

What milestone did the express business achieve?

Its first EBITDA-positive quarter since acquisition.

How did contract logistics perform?

Revenue increased 28% year on year.

Does EBITDA positivity mean the express business reported net profit?

No. EBITDA excludes depreciation, amortisation, interest and tax.