Allcargo Logistics Limited returns to Rs 18 crore quarterly profit

Allcargo Logistics Limited reported consolidated profit of Rs 18 crore for the quarter ended September 30, 2026, reversing a restated Rs 4 crore loss a year earlier, as revenue from operations increased to Rs 555 crore from Rs 537 crore. The prior-year comparison was restated following the group restructuring.

How did Allcargo Logistics return to profit in the September quarter?

Allcargo Logistics returned to profit with consolidated profit of Rs 18 crore for the quarter ended September 30, 2026, compared with a restated Rs 4 crore loss in the quarter ended September 30, 2025. Total comprehensive income also turned positive at Rs 18 crore, against a Rs 4 crore comprehensive loss in the prior-year quarter.

The change was concentrated in continuing operations, where profit before tax was Rs 25 crore compared with a Rs 6 crore loss a year earlier. Profit after tax from continuing operations was Rs 19 crore, against a Rs 5 crore loss. The September 2025 result included a Rs 15 crore exceptional cost related to the composite scheme of arrangement, while the September 2026 quarter had no exceptional item.

Profit before exceptional items and tax from continuing operations increased to Rs 24 crore from Rs 9 crore. Allcargo Logistics also recognised Rs 1 crore as its share of profit from an associate in the September 2026 quarter, whereas there was no associate share in the corresponding quarter a year earlier. Total tax expense was Rs 6 crore, compared with a Rs 1 crore tax benefit a year earlier.

What drove Allcargo Logistics revenue in the September 2026 quarter?

Allcargo Logistics generated Rs 555 crore of revenue from operations in the September 2026 quarter, Rs 18 crore above the restated Rs 537 crore reported a year earlier and Rs 9 crore above the June 2026 quarter. The company reports a single segment, domestic logistics services, which includes express delivery and warehousing.

Total income was Rs 565 crore in the September quarter, including Rs 10 crore of other income, compared with Rs 550 crore a year earlier, including Rs 13 crore of other income. For the half year ended September 30, 2026, revenue from operations rose to Rs 1,101 crore from Rs 1,028 crore in the restated prior-year half.

Total quarterly expenses were unchanged year on year at Rs 541 crore despite the Rs 18 crore revenue increase. Operating expenses fell to Rs 381 crore from Rs 383 crore, while employee benefit expenses increased to Rs 56 crore from Rs 53 crore. Depreciation and amortisation declined to Rs 48 crore from Rs 51 crore, and finance cost was unchanged at Rs 15 crore.

The discontinued fuel-stations business saw lower revenue during the period. It recorded Rs 9 crore of revenue in the September 2026 quarter, down from Rs 46 crore a year earlier, and made a Rs 1 crore loss before tax versus a Rs 1 crore profit. Management decided in the prior year to discontinue the diesel, petrol and lubricants business, which is separately presented as discontinued operations.

How did Allcargo Logistics perform in the first half?

Allcargo Logistics reported consolidated profit of Rs 32 crore for the half year ended September 30, 2026, compared with a restated Rs 14 crore loss for the half year ended September 30, 2025. Continuing operations generated Rs 33 crore of profit after tax, against a Rs 15 crore loss, while discontinued operations recorded a Rs 1 crore loss against a Rs 1 crore profit.

Profit before tax from continuing operations was Rs 44 crore in the first half, reversing a restated Rs 11 crore loss in the previous corresponding period. Profit before exceptional items and tax was Rs 43 crore, compared with a Rs 2 crore loss. The prior-year half included a net Rs 9 crore exceptional loss comprising a Rs 15 crore scheme-related cost, a Rs 7 crore gain on disposal of non-core assets and a Rs 1 crore impairment allowance.

Comparability has been affected by the composite scheme of arrangement, which became effective on November 1, 2025 after approval by the National Company Law Tribunal, Mumbai Bench. The International Supply Chain business was demerged into Allcargo Global Limited from the appointed date of October 1, 2023, while domestic supply-chain entities were merged into Allcargo Logistics through Allcargo Gati Limited.

The merger did not alter restated September 2025 revenue, which remained Rs 537 crore, but it increased previously reported quarterly profit before tax by Rs 12 crore. This changed the reported Rs 18 crore loss before tax to a restated Rs 6 crore loss. For the prior-year first half, the merger increased profit before tax by Rs 25 crore, changing the reported Rs 36 crore loss to a restated Rs 11 crore loss.

What changed in Allcargo Logistics cash and balance sheet?

Allcargo Logistics had total assets of Rs 1,758 crore at September 30, 2026, compared with Rs 1,736 crore at March 31, 2026, while total equity increased to Rs 606 crore from Rs 574 crore. Current investments rose to Rs 109 crore from nil, but cash and cash equivalents declined to Rs 25 crore from Rs 73 crore over the same period.

Net cash flow from operating activities was Rs 180 crore in the half year ended September 30, 2026, compared with Rs 209 crore in the restated prior-year half. Investing activities used Rs 111 crore, including Rs 107 crore invested in mutual funds and a Rs 45 crore inter-corporate deposit. Financing activities used Rs 118 crore, including Rs 82 crore of lease-liability principal payments.

The inter-corporate deposit resulted from income-tax refunds aggregating Rs 44.83 crore for assessment years 2023-24, 2024-25 and 2025-26. The refunds were credited to bank accounts transferred to Allcargo Global Limited under the scheme, so Allcargo Logistics has recorded the pending amount as a deposit that earns interest at 9% a year. The audit committee and board granted post-facto approval on November 3, 2026.

A separate tax matter remains unresolved after the income-tax department raised a Rs 5.61 crore demand on June 30, 2026 for the period from April 1, 2018 to April 5, 2025. Allcargo Logistics paid Rs 1.21 crore on behalf of Allcargo Global Limited and appealed the remaining Rs 4.40 crore after making a 20% deposit. The company says the matter relates to the demerged International Supply Chain business and that there would be no further financial impact on it if that position is sustained.

Conclusion

Allcargo Logistics moved from a restated Rs 4 crore consolidated loss to Rs 18 crore profit in the September quarter, with revenue from operations rising to Rs 555 crore and total expenses unchanged at Rs 541 crore. The result reflected higher continuing-operations profit, including Rs 25 crore of profit before tax, and the absence of the Rs 15 crore scheme-related exceptional cost recorded a year earlier.

The next items to watch are the outcome of the appeal on the Rs 4.40 crore remaining tax demand and receipt of the Rs 44.83 crore inter-corporate deposit from Allcargo Global Limited. Allcargo Logistics will also continue to report the fuel-stations operation separately while the discontinued business remains in its financial statements.