Key Financial Performance

Consolidated Results (Q1 FY27 vs Q1 FY26):

  • Revenue: ₹2,003 crores (up 23% YoY from previous year)
  • Gross Margin: 9.7% (improved by 28 bps from 9.4%)
  • Reported EBITDA: ₹115 crores (up from ₹76 crores)
  • Adjusted EBITDA (Ind AS 116): ₹57 crores (up 76% from ₹32 crores)
  • Adjusted EBITDA Margin: 2.8% (improved by 85 bps)
  • PAT: ₹25.4 crores (improved from loss of ₹10.8 crores)
  • PAT includes ₹4 crores interest on income tax refund (non-recurring)
  • Operating PAT (excluding one-time): ₹21.4 crores

Segment-wise Performance:

Contract Logistics:

  • Revenue: ₹1,623 crores (up 26% YoY)
  • Gross Margin: Diluted by 46 bps YoY due to manpower shortages, site ramp-up costs, and minimum wage revisions
  • EBITDA Margin: 6.9% (expanded from 6.6%)
  • Contributes 94% of overall revenue

Express Business (MESPL/Rivigo):

  • Revenue: ₹152 crores (up 58% YoY)
  • Gross Margin: 6% (improved from -3.8%)
  • EBITDA Loss: ₹1.6 crores (improved from ₹11.8 crores loss)
  • Target: EBITDA breakeven in FY27

Last Mile Delivery:

  • Revenue: Declined 16% YoY (conscious strategic choice)
  • Gross Margin: Expanded from 5% to 9% YoY
  • EBITDA profitable

Freight Forwarding:

  • Revenue: ₹45 crores (down 39% from ₹74 crores)
  • Gross Margin: Maintained at 10%
  • EBITDA positive
  • Impacted by customer attrition and geopolitical crises

Mobility Business:

  • Revenue: ₹111 crores (up 38% YoY)
  • Gross Margin: Historically 9-10%
  • Contributes 6% of overall revenue
  • Includes B2B employee transport and B2C Alyte airport taxi services

Operational Highlights

Strategic Pillars:

1. 3PL scale-up with focus on higher quality growth

2. B2B Express turnaround through network optimization and cost management

3. Operational excellence through process standardization

4. Technology differentiation via LogiOne digital ecosystem

Warehouse Utilization:

  • White space reduction target: 95% reduction by September 2026 (from 1.6 million sq ft base in Q1 FY26)
  • On track to achieve target
  • Total warehousing space: Approximately 21 million sq ft

Business Updates:

  • E-commerce and quick commerce business maintaining momentum
  • Manufacturing and telecom vertical performing exceptionally well
  • Won several large marquee clients in manufacturing space
  • Cross-selling opportunities between 3PL and Express businesses being pursued

Customer Concentration:

  • Mahindra & Mahindra contribution: Approximately 60% of revenue (increased from less than 50% due to strong auto/tractor performance)
  • No specific target to reduce concentration ratio

Mobility Business Strategy:

  • Focusing on profitable airports only
  • Withdrawing from Mumbai Airport
  • Doubling down on Delhi Airport
  • Preferred taxi partner at Noida International Airport

Management Commentary

Growth Strategy:

  • Focus on "intelligent scale" rather than scaling for sake of scale
  • Every customer, contract, and investment must contribute to long-term profitable growth
  • Bullish on logistics industry consolidation and organized sector growth

Margin Pressures:

  • Q1 margin pressures due to:
  • New site startup costs (multiple new sites opening)
  • Manpower shortages across industries
  • Fuel price increases (pass-through with lag)
  • Expected normalization in subsequent quarters

Express Business Turnaround:

  • Focus on both volume and yield optimization
  • Lane-wise profitability analysis
  • Vehicle optimization and load balancing
  • Fuel cost pass-through completed for 80% of customers

Management Participants

  • Hemant Sikka - Managing Director and CEO
  • Isha Dalal - Chief Financial Officer
  • Mandar Chavan - Strategic Growth Advisors (Moderator)

Financial Impact Assessment

  • PAT turnaround achieved with ₹36 crore improvement YoY
  • One-time income of ₹4 crores (interest on tax refund) included in PAT
  • Operational improvements driving sustainable profitability
  • All business segments showing positive momentum except Freight Forwarding (transition phase)