Company Overview

Allcargo Global Limited (AGL) presented its FY26 financial and business performance through an investor presentation covering the period ending March 31, 2026.

Financial Performance Summary

Consolidated Income Statement (FY26 vs FY25):

  • Revenue from operations: ₹12,758 crore (down 9% from ₹14,077 crore)
  • Gross Profit: ₹2,766 crore (up 1% from ₹2,750 crore)
  • Gross Margin: 22% (improved 200 bps from 20%)
  • Employee Expenses: ₹2,038 crore (up from ₹1,836 crore)
  • Other Expenses: ₹687 crore (up from ₹575 crore)
  • FOREX Loss: ₹47 crore (up from ₹14 crore)
  • EBITDA: -₹6 crore (down from ₹325 crore)
  • EBITDA Margin: 0% (down from 2%)
  • EBIT: -₹196 crore (down from ₹129 crore)
  • Pre-Exceptional PBT: -₹228 crore (down from ₹95 crore)
  • Exceptional Item: -₹55 crore (vs -₹21 crore)
  • Post Exceptional PBT: -₹283 crore (down from ₹74 crore)
  • Tax/(Tax credit): ₹8 crore (vs ₹31 crore)
  • Profit After Tax: -₹290 crore (down from ₹43 crore)
  • PAT Margin: -2% (down from 0%)

Impact of One-off Items on FY26 Profitability

The company reported one-off costs totaling ₹236 crore that significantly impacted profitability:

  • Severance & other one time staff restructuring: ₹32 crore
  • Write off of past investment and associated losses: ₹29 crore
  • Professional fees towards de-merger: ₹4 crore
  • One off PDD: ₹73 crore
  • Payment related to prior period: ₹33 crore
  • Notional forex loss: ₹47 crore
  • Other non-recurring costs: ₹18 crore

Adjusted Profit before tax (after adding back one-time costs): -₹47 crore

Business Environment Context

The second half of FY26 was marked by geopolitical issues including US trade tariffs and war in West Asia, leading to reduced volumes on high-value trade lanes and sluggish demand across most markets. The company started witnessing recovery during the fourth quarter and expects market stabilization going forward.

Overall yields were impacted by volatile geopolitical environment and incremental freight capacity outpacing demand. The company is observing yield improvement as macro conditions improve and expects sustainable recovery.

Cost Optimization Initiatives

Staff Restructuring: Consolidating front and back-office functions into SSC for scale and efficiency, introduction of AI to eliminate identified operational processes to optimize staff cost. These initiatives delivered cost savings in Q4 with SG&A reducing in the quarter. SG&A expected to normalize at a lower run-rate going forward.

Processes & Systems: Process optimization is elevating quality, productivity, utilization, and standards while reducing complexity. iTopaz is being rearchitected to a cloud native & AI enabled platform.

Borrowings Reduction: Higher cost borrowings (long term + short term) at standalone level reduced to ₹314 crores as on March 31, 2026 from ₹350 crores as on March 31, 2025.

Growth Strategy and Focus Areas

Core Business Strengths:

  • Expansion in select hinterland geographies
  • Expansion in Africa
  • Strategic presence through alliance & partners in smaller countries
  • Increase presence and market share in LATAM
  • Expansion of retail business into international markets

Growth Drivers:

  • FCL expanding footprint
  • Creation of a global CFS product
  • Cross border E-commerce
  • Xcelerate (Air+ Sea product)
  • Growth & expansion of new LCL products
  • Expanding Air product through new markets & strategic partnerships
  • Scale door-to-door offering

Strategic Focus Areas:

  • Focus on growth of long-haul trade lanes
  • Launch of new trade lanes in key identified markets
  • Technology led inside sales to capture longtail customers in China, LATAM, & other markets
  • Sales Acceleration initiatives deeply integrated with CRM
  • Growth opportunities with regional & local accounts

AI and Automation Initiatives

Current Implementations:

  • Enquiry Email AI: captures enquiry emails, drafts responses, and routes for review
  • Booking AI: seamlessly converts booking emails with layered human validation
  • Document AI: transforms unstructured documents into structured data
  • Invoice Intelligence: transforms invoices & documents into structured data
  • Finance AI (FACT): AI-powered financial insights enable proactive decisions

Future AI Roadmap:

  • Pricing Intelligence: Smart pricing with AI/ML, multi-factor recommendations at trade-lane level
  • Marketing Automation: AI ensures accurate customer data, sharp targeting, and timely campaigns
  • AI Implemented for Consultative Selling: Quick customer research & profiling

Leadership Structure

Board of Directors:

  • Shashi Kiran Shetty - Founder & Chairman
  • Adarsh Hegde - Managing Director
  • Vaishnav Shetty - Deputy Managing Director
  • Shantanu Bhadkamkar - Non-Executive, Independent Director
  • Arathi Shetty - Non-Executive Director
  • Radha Ahluwalia - Non-Executive, Independent Director
  • Hetal Gandhi - Non-Executive, Independent Director
  • Deepak Shetty - Non-Executive, Independent Director

Leadership Team:

  • Stephen Dunn - Chief Financial Officer, Allcargo Global
  • Jan Kleine-Lastheus - Chief Operating Officer, ECU Worldwide
  • Marc Stoffelen - Global Head KAM, ECU Worldwide
  • Rahul Rai - Chief Commercial Officer – LCL, ECU Worldwide
  • Rajneesh Garg - Chief Information Officer, ECU Worldwide
  • Regional CEOs covering Latin America, ISC & SEA, North America, Europe, MEA, North Asia, and China

Balance Sheet Position (March 2026 vs March 2025)

Total Assets: ₹5,160 crore (vs ₹5,211 crore)

  • Non-current assets: ₹1,987 crore (vs ₹1,730 crore)
  • Current assets: ₹3,173 crore (vs ₹3,481 crore)
  • Cash and Cash Equivalents: ₹374 crore (vs ₹499 crore)
  • Trade Receivables: ₹1,994 crore (vs ₹2,410 crore)

Liabilities and Equity:

  • Other Equity: ₹1,099 crore (vs ₹1,242 crore)
  • Non-Controlling Interest: ₹46 crore (vs ₹44 crore)
  • Non-Current Liabilities: ₹340 crore (vs ₹283 crore)
  • Current Liabilities: ₹3,479 crore (vs ₹3,446 crore)
  • Borrowings: ₹918 crore (vs ₹929 crore)
  • Lease Liability: ₹113 crore (vs ₹81 crore)

Cash Flow Statement

FY26 Cash Flow:

  • Net Cash from Operating Activities: ₹87 crore (vs -₹0.24 crore)
  • Net Cash from Investing Activities: -₹0.14 crore (vs -₹35 crore)
  • Net Cash from Financing Activities: -₹278 crore (vs ₹202 crore)
  • Net Change in Cash and Cash Equivalents: -₹191 crore (vs ₹166 crore)
  • Opening Cash Balance: ₹499 crore
  • Closing Cash Balance: ₹373 crore

Investor Relations Contact

Sanjay Punjabi: +91 9821080048, sanjay.punjabi@allcargologistics.com