Mahindra Logistics reported a consolidated net profit of ₹25.4 crore for Q1 FY27, recovering from a loss in the previous year. Revenue increased to ₹2,003 crore, supported by strong demand in contract logistics and mobility services. The company is now focusing on profitability in its last-mile delivery segment despite a decline in volumes.
Mahindra Logistics Ltd. (MLL) has reported a turnaround in its financial performance for the first quarter of the 2027 fiscal year, ending June 30, 2026. The company moved to a consolidated net profit of ₹25.4 crore, reversing the loss of ₹10.8 crore seen in the same period last year. This result marks the fourth straight quarter of improving profitability for the logistics provider.
Revenue and Operational Gains
Total revenue for the quarter reached ₹2,003 crore, representing a 23% increase compared to the previous year. Operational efficiency also showed improvement, with Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) rising by 51% to ₹115 crore. This growth in core earnings helped the company report a diluted earnings per share (EPS) of ₹2.55, compared to a negative EPS of ₹1.44 in the June 2025 quarter.
Segment Performance Trends
The company’s contract logistics division served as a primary engine for growth, recording a 26% increase in revenue and a 31% jump in EBITDA. This performance was supported by better cost management and higher profitability from individual customer contracts. Meanwhile, the express business saw a significant revenue increase of 58% year-on-year, driven by higher shipment volumes and better pricing power. This segment has now seen improved gross margins and EBITDA for four consecutive quarters.
The mobility division also contributed to the growth, with a 38% increase in revenue. This was largely attributed to new business-to-business (B2B) client acquisitions. As part of its long-term expansion, the company added 1.52 million square feet to its warehousing network, bringing its total warehousing footprint to 21.9 million square feet.
Strategic Shifts in Last-Mile Delivery
Not all segments saw growth, as the company intentionally scaled back its last-mile delivery business, which saw a 16% decline in revenue. This was a strategic decision to focus on profitable orders rather than total volume in an environment where pricing remains competitive. The move appears to have been effective for the bottom line, as the segment shifted from an EBITDA loss of ₹0.5 crore in the previous year to a positive EBITDA of ₹2.6 crore this quarter.
Investors may monitor the company’s ability to maintain these profit margins as it continues to expand its warehousing capacity and manage competitive pressures in the logistics sector. The key update to track in coming quarters will be whether the growth in contract and express logistics can offset any further recalibrations in the last-mile segment, alongside the impact of the new warehousing space on overall return ratios.