Allcargo Logistics Limited EBITDA Rises 24.2% to Rs 77 Crore Q2 FY27

Allcargo Logistics Limited reported Q2 FY27 EBITDA of Rs 77 crore, up 24.2% year on year, while its EBITDA margin rose 240 basis points to 13.9%. The September-quarter performance matters because profit growth exceeded the company’s 3.4% revenue growth, reflecting higher pricing and direct-cost discipline.

What did Allcargo Logistics report for Q2 FY27?

Allcargo Logistics reported revenue from operations of Rs 555 crore for the quarter ended September 30, 2026, compared with Rs 537 crore in Q2 FY26. This represented year-on-year growth of 3.4%. Revenue was also 1.6% higher than Rs 546 crore in Q1 FY27, indicating a modest sequential improvement in the business.

The larger movement was in operating profit. EBITDA rose to Rs 77 crore from Rs 62 crore a year earlier and Rs 71 crore in the preceding quarter. The company reported EBITDA growth of 24.2% year on year and 8.5% quarter on quarter. Its EBITDA margin improved to 13.9%, from 11.5% in Q2 FY26 and 13.0% in Q1 FY27.

What drove Allcargo Logistics' margin expansion?

Allcargo Logistics attributed the improvement primarily to service-led pricing and disciplined direct-cost management. Chief Financial Officer Deepak Pareek said that pricing corrections implemented over Q1 and Q2 were the main reason EBITDA margin rose from 13.0% in Q1 FY27 to 13.9% in Q2 FY27. Management also described the quarter as one shaped by operational agility and cost governance.

Gross profit increased 13.0% year on year to Rs 174 crore, faster than revenue growth. Gross margin reached 31.4%, up 270 basis points from 28.7% in Q2 FY26 and 150 basis points from 29.9% in Q1 FY27. This gap between revenue growth and gross-profit growth explains much of the stronger EBITDA outcome during the quarter.

Pareek also highlighted an improvement in India gross profit margin to 30.6% in Q2, from 29.1% a year earlier. On a year-to-date basis, management reported a gross margin of 36.5% in consultative logistics and 27.0% in express. The company did not provide further segment revenue or earnings figures in the supplied call details.

How did Allcargo Logistics perform in the first half of FY27?

Allcargo Logistics recorded H1 FY27 revenue from operations of Rs 1,101 crore, up 7.1% from Rs 1,028 crore in H1 FY26. The half-year result places the Q2 revenue growth in context: the company entered the September quarter after a higher year-on-year growth rate over the first six months.

Management presented the Q2 and H1 FY27 performance in an earnings call held on November 4, 2026. Ketan Kulkarni, Managing Director and Chief Executive Officer, Deepak Pareek, Chief Financial Officer, and Sanjay Punjabi from investor relations represented the company. The results covered the quarter and half year ended September 30, 2026.

The company’s comments also referred to the broader domestic setting. Management noted that India’s GDP growth for Q1 was 7.8% and said it was expected to remain in a similar range for FY27. This observation was presented as macroeconomic context, while the reported financial improvements were linked specifically to the company’s pricing and cost actions.

Why does the Q2 FY27 result matter for investors?

The Q2 FY27 result matters because Allcargo Logistics delivered operating-profit growth well above its revenue growth rate. Revenue increased by Rs 18 crore year on year, while EBITDA increased by Rs 15 crore. The resulting margin gain shows the significance of pricing actions and direct-cost control in the reported quarter.

For investors, the disclosed figures provide evidence that the company’s operating leverage improved during Q2. Gross margin rose by 270 basis points year on year, while EBITDA margin gained 240 basis points. However, the supplied earnings-call information does not provide a forward revenue target, EBITDA target, capital-allocation plan, or guidance on future margins.

For customers and industry participants, management’s reference to firm service-led pricing indicates that commercial terms were adjusted during Q1 and Q2. The available information does not specify customer-level price changes, contract terms, shipment volumes, or regional operating changes. As a result, the reported outcome can be assessed through consolidated revenue, gross profit and EBITDA, rather than through detailed volume data.

How should the margin improvement be assessed?

The margin improvement should be assessed against both the prior year and the immediately preceding quarter. Gross margin increased from 28.7% in Q2 FY26 to 31.4% in Q2 FY27, while EBITDA margin moved from 11.5% to 13.9%. Sequentially, gross margin rose 150 basis points and EBITDA margin rose 90 basis points from Q1 FY27.

The difference between the gross-margin and EBITDA-margin expansion suggests that a substantial part of the improvement at the direct-cost level was retained at the operating-profit level. The data also show that Q2 was not solely a year-on-year recovery, as EBITDA rose from Rs 71 crore in Q1 FY27 to Rs 77 crore in Q2 FY27. Still, the company’s revenue growth remained moderate at 3.4% year on year.

Management’s pricing comments are relevant because price corrections can affect profitability without requiring a comparable rise in revenue. The reported numbers support that pattern for the September quarter: gross profit grew 13.0% and EBITDA grew 24.2%, compared with 3.4% revenue growth. No information in the supplied material quantifies the separate contribution of pricing, volumes or individual cost categories.

Conclusion

Allcargo Logistics reported a stronger Q2 FY27 operating performance, with EBITDA rising 24.2% year on year to Rs 77 crore and EBITDA margin expanding to 13.9%. Revenue grew at a slower 3.4%, while higher gross margin, price corrections and direct-cost discipline supported profit growth.

The next areas to watch are whether the pricing measures continue to support margins, how revenue progresses after H1 FY27 revenue of Rs 1,101 crore, and any future disclosures on business volumes or segment-level performance. The supplied earnings-call material contains no formal forward guidance or scheduled financial target beyond the reported period.