• Returned to profitability with operational PAT of INR 8.2 crores in FY26 after two consecutive years of losses
• Express business (MSPL) achieved gross margin positivity at 1.3% for full year FY26, with Q4 gross margin of INR 6.6 crores, and management states they are 'very close' to EBITDA breakeven
• Contract Logistics revenue grew 12% YoY in Q4 to INR 1,381 crores and 16% for full year to INR 5,490 crores, with reported EBITDA growing 24% to INR 389 crores
• E-commerce and quick commerce business scaled to over INR 1,000 crores in annual revenue, demonstrating strong position in high-growth segments
• Successfully reduced white space by 9 lakh square feet in FY26 (from 16 lakh to 7 lakh square feet), on track to achieve 95% reduction by September 2026
• Freight forwarding business grew revenue 17% in Q4 and 14% for full year, with EBITDA improving from INR 6.8 crores to INR 10.1 crores
• Mobility business revenue grew 39% YoY in Q4 and 22% for full year to INR 386 crores, driven by scale-up in large B2B accounts
• Consolidated gross margin expanded 100 bps from 9.4% in FY25 to 10% in FY26, with Q4 at 10.5%

Mahindra Logistics delivered a strong turnaround in FY26, returning to profitability after two years of losses with consolidated PAT of INR 2.3 crores versus INR 35.8 crores loss in FY25. The company demonstrated significant operational improvements across all segments, with consolidated revenue growing 15% to INR 6,999 crores, adjusted EBITDA margin expanding from 2.3% to 3.2%, and the Express business (MSPL) achieving gross margin positivity while nearing EBITDA breakeven.

Mahindra Logistics reported consolidated revenue of INR 1,791 crores in Q4 FY26, up 14% YoY, with full year revenue at INR 6,999 crores, up 15% YoY. The company achieved consolidated PAT of INR 20.2 crores in Q4 versus a loss of INR 6.7 crores in Q4 FY25. For the full year, reported PAT was INR 2.3 crores versus a loss of INR 35.8 crores in FY25, with operational PAT (excluding exceptional items) at INR 8.2 crores. Consolidated gross margin expanded significantly to 10.5% in Q4 from 9.5% YoY, and 10% for the full year versus 9.4% in FY25. Adjusted EBITDA (after accounting for INR 218 crores of long-term lease rent) grew 31% to INR 158 crores for FY26 from INR 121 crores in FY25, with adjusted EBITDA margin improving from 2.3% to 3.2% in Q4. The Express business (MSPL) showed remarkable turnaround with revenue growing 49% YoY in Q4 and 25% for the full year to INR 1,149 crores, turning gross margin positive at 1.3% for FY26 after being loss-making, with EBITDA losses reduced substantially from INR 51 crores in FY25 to INR 31 crores in FY26. Contract Logistics reported EBITDA of INR 389 crores, up 24% YoY. The company maintains a strong balance sheet post rights issue and demonstrated improving cash flows.

Management displayed strong confidence and conviction about the business transformation, with CEO Hemant Sikka emphasizing this is 'just the beginning of what lies ahead' and expressing he would be 'very disappointed' if anyone views current performance as best case. The leadership repeatedly stressed the structural improvements made over the past year, highlighting 'sharper leadership focus,' 'strengthened strategic clarity,' and a 'performance culture anchored in measurable outcomes.' Management emphasized disciplined execution, stating they have 'pressed all levers' to improve profitability including pricing renegotiations, comprehensive cost review down to INR 10,000 expenses, and client-wise EBITDA profitability analysis. They expressed particular confidence in the Express business, calling it a 'network business with very high entry barriers' similar to airlines, requiring years to build but now positioned for long-term sustainable growth. However, management also demonstrated prudence, noting the need to remain 'prudent, selective and cautious' given global uncertainties, and focusing on 'building for the long term' rather than 'chasing short term outcomes.' The tone was balanced between celebrating achievements and maintaining operational discipline.

The primary near-term headwind is the geopolitical situation in West Asia, which management specifically called out as creating 'clear headwinds' in the freight forwarding business due to shipping line disruptions, container congestion at ports, elevated insurance premiums, and higher freight rates causing customers to defer shipments. Management noted this segment's challenges are expected to 'persist in the near term.' There is concern about potential diesel price inflation - management indicated a 10-15% increase would be passed to customers but expressed worry that such inflation 'impacts every segment of the economy' and could slow overall economic growth, though they couldn't quantify the impact. The Express business (MSPL), while improving, still reported EBITDA losses of INR 31 crores in FY26 and requires continued investment in technology in FY27 after two years without investment. The last mile delivery business saw strategic revenue decline of 18% YoY in Q4 as the company exited unprofitable business. Warehousing space reduced from 20.4 million square feet to 19 million square feet, partly due to relinquishing leases for non-profitable customers. Management noted Q4 is typically the strongest quarter, cautioning against extrapolating Q4 momentum to Q1. There's also uncertainty around customer inventory levels - if production is currently consuming inventory and West Asia disruptions continue, there could be supply chain impacts. The company faces competitive pressure in Express from larger, more established players with significantly higher margins (competitor mentioned with 19% unit EBITDA margins).

Revenue Outlook: Management targets mid to high-teens revenue growth for Express business; overall growth expected but no specific consolidated guidance provided; Q1 expected to be sequentially lower than Q4 as Q4 is typically the strongest quarter

Margin Outlook: Continued margin expansion expected as 'benefits from margin expansion initiatives and operating leverage will continue to accrue in future'; management agreed directionally that margins should surpass FY18-19 levels (3.6-3.9%) over medium term; Express business 'very close' to EBITDA breakeven but no specific timeline provided

Key Targets:

• Achieve 95% reduction in white space by September 2026 (currently at 7 lakh sq ft from 16 lakh sq ft)
• Express business to achieve EBITDA breakeven in near term (described as 'very close')
• Continue improving customer-level economics across all segments
• Technology investment in Express business planned for FY27 after two years without investment
• Enter one new segment in Contract Logistics during current year (under evaluation)

The Q&A session revealed strong analyst interest in the Express business turnaround trajectory and profitability timeline, with multiple questions probing when EBITDA breakeven would be achieved and what volume/yield dynamics are driving improvement. Management was appropriately cautious, refusing to provide specific timelines while emphasizing they are 'very close' to breakeven. Analysts also focused heavily on understanding the adjusted EBITDA metric (new disclosure this quarter) and whether margins can return to historical FY18-19 levels, to which management agreed directionally while emphasizing significant runway remains. Concerns about external factors dominated questions, particularly around West Asia geopolitical impacts (management confirmed headwinds in freight forwarding specifically) and potential diesel price inflation (pass-through confirmed but economic impact concerns raised). There was notable interest in understanding the white space reduction progress and Contract Logistics margin drivers, with management providing detailed explanations of their comprehensive operational improvements. Overall, management struck a balanced tone - confident about the structural improvements made and future potential, but appropriately cautious about near-term uncertainties and refusing to overpromise on timelines. They successfully conveyed that while profitability has been restored, this is 'just the beginning' of the transformation journey rather than a final destination.