Allcargo Global returns to profit as Q2 EBITDA hits Rs 122 crore

Allcargo Global Limited returned to quarterly profitability in Q2FY27, reporting profit after tax of Rs 32 crore and earnings before interest, tax, depreciation and amortisation (EBITDA) of Rs 122 crore, as capacity constraints and peak-season volumes kept freight rates elevated despite year-on-year declines in less-than-container-load (LCL), full-container-load (FCL) and air volumes.

How did Allcargo Global return to quarterly profit in Q2FY27?

Allcargo Global reported profit after tax of Rs 32 crore in Q2FY27, compared with losses in Q2FY26 and Q1FY27. EBITDA reached Rs 122 crore, up 229% year-on-year from Rs 37 crore in Q2FY26 and 270% quarter-on-quarter from Rs 33 crore in Q1FY27.

The second-quarter EBITDA result also changed the first-half outcome. EBITDA for H1FY27 was Rs 155 crore, compared with Rs 6 crore in H1FY26, while the Q2FY27 contribution of Rs 122 crore accounted for most of the half-year amount. Management attributed the profitable quarter to operational efficiency, yield management and disciplined monitoring of trade lanes.

Why did Allcargo Global’s revenue rise while freight volumes fell year-on-year?

Allcargo Global’s revenue increased 27% year-on-year to Rs 4,320 crore in Q2FY27, even as all three reported freight-volume categories were lower than a year earlier. Management said capacity constraints continued to affect markets during the quarter and, together with peak-season volumes, kept freight rates elevated.

Gross profit was Rs 837 crore in Q2FY27, up 21% from Rs 694 crore in Q2FY26 and 14% from Rs 733 crore in Q1FY27. For H1FY27, revenue was Rs 7,842 crore against Rs 6,723 crore in H1FY26, while gross profit rose to Rs 1,570 crore from Rs 1,409 crore.

The comparison indicates that the revenue recovery was associated with freight-rate and yield conditions rather than year-on-year volume expansion. Management specifically identified yield management as one of the mechanisms behind the Q2FY27 result, alongside operational efficiency and trade-lane discipline.

What happened to Allcargo Global’s LCL, FCL and air volumes in Q2FY27?

Allcargo Global’s Q2FY27 LCL volume was 2,132 thousand cubic metres, down 5.7% year-on-year from 2,260 thousand cubic metres in Q2FY26 but up 2.9% from 2,073 thousand cubic metres in Q1FY27. Management said part of the volume decline over the prior year was due to the crisis in the Middle East.

FCL volume was 1,489 hundred twenty-foot equivalent units (TEUs) in Q2FY27, down 12% year-on-year from 1,689 hundred TEUs and up 1.3% quarter-on-quarter from 1,470 hundred TEUs. Air volume was 8,469 tonnes, down 10% from 9,422 tonnes in Q2FY26 but up 16% from 7,315 tonnes in Q1FY27.

All three categories improved sequentially in Q2FY27, led by air freight’s 16% quarter-on-quarter increase. Across H1FY27, however, LCL volume was 4,205 thousand cubic metres versus 4,405 thousand cubic metres in H1FY26, FCL volume was 2,960 hundred TEUs versus 3,388 hundred TEUs, and air volume was 15,784 tonnes versus 17,817 tonnes.

How did Allcargo Global’s net debt change during Q2FY27?

Allcargo Global’s net debt stood at Rs 587 crore at September 30, 2026, compared with Rs 571 crore in June 2026. The Rs 16 crore increase was attributed by management to a significant rise in working capital resulting from high freight rates.

The presentation defines net debt as long-term borrowings plus short-term borrowings minus cash and bank balance. This balance-sheet movement occurred in the same quarter in which revenue rose to Rs 4,320 crore and gross profit reached Rs 837 crore, showing that the freight-rate environment affected working-capital needs as well as reported earnings.

No net-debt target, repayment timetable or borrowing-breakdown figure was disclosed in the Q2FY27 presentation. The disclosed comparison is therefore limited to the June 2026 and September 2026 balances, alongside management’s explanation that high freight rates increased working capital.

What growth plans has Allcargo Global disclosed after Q2FY27?

Allcargo Global has outlined growth areas that include expansion in select hinterland geographies, Africa and Latin America, known as LATAM, as well as an expanded retail business presence in international markets. The company also listed renewables and new-energy business, cross-border e-commerce, and scaling its door-to-door offering among its growth drivers.

In products and services, Allcargo Global identified Xcelerate, an air-and-sea product, new LCL products, and expansion of air services through new markets and strategic partnerships. It also plans to expand its ECL footprint, although the presentation does not disclose a date, investment amount or revenue target for that initiative.

The company’s strategic focus areas include long-haul trade lanes, launches of new trade lanes in identified markets, and technology-led inside sales aimed at long-tail customers in China, LATAM and other markets. It also cited sales-acceleration initiatives integrated with customer relationship management systems and growth opportunities with regional and local accounts.

Conclusion

Allcargo Global’s Q2FY27 performance combined a return to profit, Rs 122 crore of EBITDA and 27% year-on-year revenue growth with lower year-on-year LCL, FCL and air volumes. The presentation attributes that outcome to elevated freight rates, operational efficiency, yield management and trade-lane monitoring, while the rise in net debt to Rs 587 crore reflected higher working-capital requirements.

The next disclosed event is Allcargo Global’s Q2FY27 earnings conference call scheduled for November 17, 2026. Readers can watch for management’s discussion of whether capacity constraints and peak-season freight rates persist, how the Middle East crisis affects volumes, and whether the listed expansion plans gain dates, targets or financial details.