Allcargo Logistics reported a return to profit in the June quarter, driven by rising express freight volumes, improved pricing, and focused margin expansion efforts, signalling a strategic turnaround amid a growing market.
Allcargo Logistics returned to profit in the June quarter as stronger express freight volumes, better pricing and a richer business mix lifted both revenue and earnings. According to the company’s earnings call summary, consolidated revenue rose 11.2% year on year, while profit after tax came in at Rs 15 crore, reversing the loss posted in the same period a year earlier.
The sharpest improvement came from the express logistics division, where volumes increased 6.7% to 312,000 tons and realisations per ton climbed 6.4%. That helped express revenue rise 13.5%, even as the business remained heavily dependent on road transport, with management saying roughly 95% of activity is road-based and about 5% comes from air. The company also said pricing gains were supported by a transparent diesel adjustment mechanism and by efforts to charge more for better service quality.
Consultative logistics also delivered a steadier performance, with service adherence above 99% and customer retention at 98%. Revenue per square foot improved 3%, even as warehouse space under management eased to 7.5 million square feet from 8.4 million previously. Management said the reduction was deliberate, aimed at cutting empty space and improving productivity rather than shrinking the business. Separate analysis from Arthneeti said e-commerce and quick commerce remain important growth areas for the consultative arm, which operates fulfilment centres for those customers.
Earnings growth outpaced sales because of stronger operating leverage. Consolidated EBITDA rose 39.2% from a year earlier and 18.9% from the previous quarter. That marks a notable contrast with Q1 FY26, when Mint and other market trackers reported a net loss of around Rs 100 crore and pressure from higher costs. This time, other income also helped the bottom line, including Rs 8 crore from a lease closure gain that the company said was exceptional and not likely to recur.
Management said growth remains the main priority over the next two years, with a goal of outpacing the market by at least 1 percentage point. Chief executive Ketan Kulkarni said the company wants to lift operating, EBITDA and profit margins further, while chief financial officer Deepak Pareek outlined capital expenditure of roughly Rs 10 crore to Rs 15 crore for express logistics and about Rs 20 crore for consultative logistics this year. The company also set a clear target for express EBITDA margins, aiming for 7.5% this year and 10% within three years, up from the current 6.2%.
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