Mahindra Logistics Q2 FY27: Profitability Returns

Revenue grew 24% YoY to Rs 2,095 crore; PAT improved to Rs 26 crore from a loss.

Reader Takeaway: Strong performance in core contract logistics is bolstered by the Express business finally turning EBITDA-positive.

What just happened

Mahindra Logistics posted a robust second quarter for FY27, marked by a return to profitability and significant operational milestones. The company's consolidated revenue climbed to Rs 2,095 crore, a 24% increase over the previous year. Notably, the firm swung to a Profit After Tax (PAT) of Rs 26 crore, compared to a loss of Rs 10 crore in the year-ago period. Consolidated EBITDA grew to Rs 124 crore with a 90 bps margin expansion to 5.9%.

Why this matters

The highlight of the quarter was the Express business (MESPL/Rivigo), which achieved its first-ever EBITDA-positive quarter of Rs 2.3 crore. This segment saw 69% revenue growth, signaling that the company's turnaround efforts are yielding results. Simultaneously, the core Contract Logistics segment grew by 28%, proving the company's ability to scale its primary business line effectively.

The backstory

Over the last 24 months, Mahindra Logistics has focused on integrating its acquisitions and tightening operational efficiency. The company remains in a transition phase, moving from a heavy turnaround focus toward an acceleration phase, backed by a new, frugal tech platform project approved by the Board.

Risks to watch

Margin pressure remains a key concern. Management noted that specific manpower costs and wage revisions are difficult to pass on to customers, particularly where written contracts are absent. Additionally, the Freight Forwarding segment faces headwinds from geopolitical tensions and volatile spot rates, with meaningful growth deferred to FY28.

Context metrics

The company maintains a strong balance sheet with Rs 308 crore in net cash and low total debt of Rs 55 crore. H1 FY27 ROCE improved significantly to 12.9% from 1.7% in the same period last year.

What to track next

Investors should monitor the roll-out of the new unified tech platform beginning in Q4 FY27 and the sustainability of margin expansion, which management cautioned is a medium-term objective rather than a short-term trend.