Allcargo Logistics Limited records Rs 44.83 crore receivable

Allcargo Logistics Limited recorded a Rs 44.83 crore receivable as an inter-company deposit from Allcargo Global Limited in the quarter ended September 30, 2026, after tax refunds were credited to transferred bank accounts; the Company is charging 9% annual interest and obtained post-facto approvals on November 3, 2026.

What did the Company record as an inter-company deposit?

The Company recorded Rs 44.83 crore as an inter-company deposit, or ICD, receivable from Allcargo Global Limited, referred to in the filing as AGLo. The amount represents income-tax refunds that became due after the Company received assessment orders for Assessment Years 2023-24, 2024-25 and 2025-26 during the quarter ended September 30, 2026.

The Income Tax Department credited the refunds to bank accounts transferred to AGLo under the Composite Scheme of Arrangement. Pending receipt from AGLo, the Company treated the Rs 44.83 crore as an ICD rather than cash available in its own transferred bank accounts. The note identifies AGLo as the counterparty and does not disclose a repayment date or any recovery by September 30, 2026.

The standalone cash-flow statement reports Rs 45 crore as “Inter Corporate Deposit given” for the half year ended September 30, 2026, with a cross-reference to the same note. The difference from the Rs 44.83 crore disclosed in the note reflects presentation in whole crores in the cash-flow statement; the filing does not disclose any separate ICD transaction in that note.

Why were the tax refunds credited to AGLo accounts?

The refunds were credited to AGLo accounts because the Company’s International Supply Chain, or ISC, business was demerged into AGLo under the Composite Scheme of Arrangement. The scheme became effective on November 1, 2025, when the National Company Law Tribunal, Mumbai Bench order was filed with the Registrar of Companies.

For the demerger accounting, the Company gave effect to the ISC transfer from the appointed date of October 1, 2023, rather than the November 1, 2025 effective date. The filing says this treatment under the approved scheme overrides otherwise applicable Indian Accounting Standards, or Ind AS. Comparative financial information for the quarter and half year ended September 30, 2025 was restated to reflect the composite scheme.

The filing separately describes an income-tax demand of Rs 5.61 crore under an assessment order dated June 30, 2026 for the block period from April 1, 2018 to April 5, 2025. The Company says that demand relates to the demerged ISC business, while the Rs 44.83 crore ICD concerns refunds credited to transferred accounts. These are separate tax matters despite both being linked to the same demerger.

During the September 2026 quarter, the Company paid Rs 1.21 crore on AGLo’s behalf toward the Rs 5.61 crore demand. It appealed the remaining Rs 4.40 crore after paying a 20% deposit with the tax authority on AGLo’s behalf. The Company said any final liability relating to the transferred ISC undertaking would have no further financial impact on it.

How will the Company charge interest on the ICD?

The Company is charging AGLo interest at 9% per annum from the date of receipt of each tax refund. The disclosed principal is Rs 44.83 crore, but the filing provides neither the individual refund receipt dates nor interest accrued through September 30, 2026.

The 9% charge means the ICD will include the Rs 44.83 crore principal and interest calculated from the relevant receipt dates. The filing does not state a maturity period, repayment schedule, security, or terms for settlement between the Company and AGLo. As a result, the disclosed rate alone cannot establish an interest amount for the quarter or half year.

For the half year ended September 30, 2026, the Company reported Rs 57 crore of direct tax refunds received in operating cash flow, compared with Rs 52 crore in the corresponding 2025 period. Separately, net cash from operating activities declined to Rs 175 crore from Rs 203 crore, while investing activities included Rs 107 crore invested in mutual funds and Rs 45 crore of ICD given.

Cash and cash equivalents from continuing operations were Rs 25 crore at September 30, 2026, compared with Rs 71 crore at March 31, 2026. The Company also reported income-tax assets, net, of Rs 60 crore at September 30, 2026, down from Rs 118 crore at March 31, 2026, but it did not identify the balance-sheet caption containing the Rs 44.83 crore ICD.

What approvals and financial context did the Company disclose?

The Company sought post-facto approval for the ICD from its Audit Committee and Board of Directors at meetings held on November 3, 2026. The approvals followed the credit of refunds to transferred accounts and the treatment of Rs 44.83 crore as an interest-bearing receivable from AGLo.

The Audit Committee and Board also reviewed and approved the unaudited standalone results for the quarter ended September 30, 2026 on November 3, 2026. The statutory auditors issued an unmodified limited-review conclusion. The Company identifies domestic logistics services, including express delivery and warehousing, as its one reportable segment.

Standalone revenue from operations rose to Rs 555 crore in the September 2026 quarter from Rs 537 crore in the restated September 2025 quarter. Profit before tax changed to a Rs 23 crore profit from a Rs 7 crore loss, while profit from continuing operations after tax changed to a Rs 17 crore profit from a Rs 6 crore loss.

What remains undisclosed about the receivable?

The Company has not disclosed when AGLo must remit the Rs 44.83 crore, whether any amount was collected after September 30, 2026, or the interest recognised at 9% per annum. It also does not provide the individual dates when the three assessment-year refunds were received, preventing a calculation of interest from the filing.

The September 30, 2026 standalone balance sheet reports Rs 54 crore of other financial assets, compared with Rs 56 crore at March 31, 2026, and Rs 45 crore of loan assets, compared with Rs 38 crore. However, the Company does not say whether the ICD is included in either line, so neither caption can be treated as a direct reconciliation to the Rs 44.83 crore receivable.

The Company’s disclosures distinguish the ICD from the older assessment order: the refund receivable is due from AGLo, whereas the Rs 5.61 crore demand is under appeal. The next financial disclosure may show whether the Company has received the principal, recorded interest, or provided further terms of the related-party balance.

Conclusion

The Rs 44.83 crore ICD records the Company’s right to recover tax refunds that entered bank accounts transferred to AGLo under the ISC demerger. The arrangement formalises AGLo as the counterparty and applies 9% annual interest, while the September 2026 standalone results showed revenue increasing by Rs 18 crore year on year and profit before tax moving from a Rs 7 crore loss to a Rs 23 crore profit.

Investors should watch for recovery of the Rs 44.83 crore principal, the amount of interest recognised from the refund receipt dates, and any repayment terms disclosed by the Company. The filing also leaves the Rs 4.40 crore appealed portion of the separate Rs 5.61 crore demand unresolved, with the Company stating that the final outcome will determine the related liability.