Allcargo Logistics Q2 EBITDA rises 24.2% to Rs 77 crore

Allcargo Logistics Limited reported Q2 FY27 EBITDA of Rs 77 crore, up 24.2% year on year, as consolidated gross margin expanded 2.7 percentage points to 31.4%, revenue increased 3.4% to Rs 555 crore and the operating-expense ratio declined to 68.6% from 71.3%.

How did Allcargo Logistics’ Q2 FY27 revenue and EBITDA change?

Allcargo Logistics increased consolidated revenue from operations by 3.4% year on year and 1.6% quarter on quarter to Rs 555 crore in Q2 FY27, while gross profit grew faster, by 13.0% year on year, to Rs 174 crore. Earnings before interest, tax, depreciation and amortisation, or EBITDA, excluding other income, rose 24.2% year on year to Rs 77 crore. The difference between the revenue and EBITDA growth rates indicates that more of the additional revenue translated into operating profit during the quarter.

Allcargo Logistics also reported profit before tax, or PBT, excluding exceptional items, of Rs 24 crore in Q2 FY27, compared with Rs 9 crore in Q2 FY26 and Rs 19 crore in Q1 FY27. For the first half, revenue rose 7.1% year on year to Rs 1,101 crore, gross profit increased 12.3% to Rs 337 crore and EBITDA rose 31.0% to Rs 148 crore. H1 FY27 PBT was Rs 43 crore, compared with a Rs 2 crore loss in H1 FY26.

What drove Allcargo Logistics’ margin expansion?

Allcargo Logistics attributed the Q2 FY27 gross-margin improvement to fuel-price-hike pass-through in Express and portfolio and warehouse optimisation in Consultative Logistics. Consolidated gross margin reached 31.4%, versus 28.7% in Q2 FY26 and 29.9% in Q1 FY27. This 2.7-percentage-point annual increase accompanied gross profit growth of 13.0%, compared with revenue growth of 3.4%.

Selling, general and administrative, or SG&A, costs were 17.5% of Q2 FY27 sales, 0.4 percentage points above Q2 FY26 but 0.7 percentage points below the 18.2% recorded in H1 FY26. Allcargo Logistics said SG&A as a share of revenue was lower than last year because of continued cost-saving initiatives. Operating expenses were 68.6% of Q2 sales, down 2.7 percentage points year on year and 1.5 percentage points quarter on quarter; for H1 FY27, that ratio was 69.4%, against 70.8% a year earlier.

How did Allcargo Logistics’ Express business perform in Q2 FY27?

Allcargo Logistics’ Express revenue rose 2.5% year on year to Rs 386 crore in Q2 FY27, although it was broadly unchanged from Rs 385 crore in Q1 FY27. The H1 comparison was faster: Express revenue increased 7.7% year on year to Rs 772 crore from Rs 717 crore. Management linked revenue growth to higher volumes and realisation per tonne, while its Express strategy includes service-led customer segmentation, yield improvement and a pan-India surface network reaching Tier 2 to Tier 4 towns.

Express volume was 311,000 tonnes in Q2 FY27, down from 326,000 tonnes in Q2 FY26 and 312,000 tonnes in Q1 FY27. Yet the realisation-per-tonne index was 107.5 in Q2 FY27, with Q2 FY26 set at 100.0, showing the reported improvement in yield over the year. The net-service-level index rose to 110.2 in Q2 FY27 from 102.9 in Q1 FY27, with Q3 FY26 set at 100.0. Allcargo Logistics also lists 24-hour air express across metro cities among its premium time-definite products.

What did Consultative Logistics contribute in Q2 FY27?

Allcargo Logistics’ Consultative Logistics revenue increased 5.7% year on year and 5.0% quarter on quarter to Rs 169 crore in Q2 FY27. That was a faster quarterly revenue increase than Express, whose Rs 386 crore revenue was up 2.5% year on year. For H1 FY27, Consultative Logistics revenue rose 5.8% to Rs 330 crore, compared with Rs 311 crore in H1 FY26. The company identified chemicals as a continuing area of strength and said it was focusing on offerings for e-commerce.

Space under management in Consultative Logistics declined to 7.4 million square feet in Q2 FY27 from 7.8 million square feet a year earlier and 7.5 million square feet in Q1 FY27. The company said it was continuously reviewing and optimising its customer and warehouse portfolio, which is consistent with its stated margin explanation for this segment. In its contract-logistics operating approach, Allcargo Logistics reported more than 99% service-quality adherence and a 98% customer-retention rate, alongside warehouse-management-system-led automation intended to improve inventory accuracy, throughput and productivity.

Conclusion

Allcargo Logistics’ Q2 FY27 results show operating profit growing materially faster than revenue: EBITDA rose 24.2% to Rs 77 crore on a 3.4% revenue increase to Rs 555 crore. The reported outcome was accompanied by a 31.4% gross margin, a 68.6% operating-expense ratio and a Rs 24 crore PBT, while H1 EBITDA increased 31.0% to Rs 148 crore.

The next results will indicate whether the company can sustain the Express fuel-cost pass-through and the Consultative Logistics portfolio and warehouse optimisation that it cited for margin improvement. Management’s disclosed operating plans include an AI-enabled booking app, Hub Eye, Gate Scan, warehouse management systems, a 24x7 control tower and route-optimisation initiatives; their effect on service levels, volume and realisation per tonne remains to be reported.