Allcargo Logistics Q4 FY26: EBITDA Margin Rises to 12%

Key takeaway: flat revenue, better operating control

Allcargo Logistics ended Q4 FY26 with revenue from operations of INR 514 crore, almost unchanged from INR 513 crore in Q4 FY25 and slightly below INR 516 crore in Q3 FY26. The quarter’s headline was not growth, but a visible improvement in operating profitability. Consolidated EBITDA (excluding other income) rose to INR 60 crore from INR 43 crore a year earlier. That lifted EBITDA margin to 12% from 8% in Q4 FY25.

Profit after tax (PAT) for Q4 FY26, however, declined to INR 20 crore from INR 25 crore in Q4 FY25. For investors, the quarter showed that margin recovery can happen even in a slow top-line environment, but translating operating gains into net profit remains challenged by depreciation and below-the-line items.

Q4 FY26 financial snapshot

Gross profit increased to INR 154 crore in Q4 FY26, up 3% year-on-year, despite the flat revenue base. The gross margin improved to 30% from 29%. Alongside this, operating cost actions were visible in lower employee and other expenses compared with the year-ago quarter.

The company’s narrative for FY26 was “steady and disciplined,” with management pointing to the merger of consultative logistics with the express business as a structural move. The stated objective was better yields and cost rationalisation across both operating costs and SG&A. Q4 results broadly reflected that direction, with improved margins driven more by cost control and realisation than volume-led growth.

Full-year FY26: modest growth, stronger EBITDA, weaker PAT

For FY26, revenue from operations rose 5% year-on-year to INR 2,058 crore. EBITDA improved 16% to INR 233 crore and EBITDA margin expanded to 11% from 10% in FY25.

Net profit performance diverged sharply from the operating trend. FY26 PAT was INR 6 crore, down from INR 63 crore in FY25. The financials pointed to a bridge where operating improvement was offset by high depreciation and the effect of exceptional items and tax movements. Depreciation remained elevated at INR 204 crore in FY26, including right-of-use assets depreciation of INR 170 crore.

Express business: volumes stable, realisation improved

In the express segment, volumes were broadly stable year-on-year but softer sequentially. Express volumes in Q4 FY26 were 300 thousand tons, compared with 294 thousand tons in Q4 FY25 and 313 thousand tons in Q3 FY26. The more supportive metric was realisation per ton.

Realisation per ton in Q4 FY26 stood at INR 12,037, up 3% year-on-year and 4% quarter-on-quarter. In a network-led logistics model, an improvement in realisation typically reflects tighter pricing discipline, better customer or lane mix, and more deliberate capacity decisions. The combination of stable volumes and improving realisation aligned with the quarter’s margin expansion.

Consultative logistics: steady quarter, strong FY26 growth

Consultative logistics, which includes long-haul transportation, distribution centres, in-plant logistics and milk runs, reported Q4 FY26 revenue of INR 151 crore. This was up 3% year-on-year and down 1% quarter-on-quarter. The segment’s full-year performance was stronger: FY26 revenue increased 17% year-on-year to INR 615 crore.

Operational scale also improved. Space under management rose to 8.0 million sq ft from 7.7 million sq ft in FY25. Management has linked the integration of consultative logistics with express to cross-selling opportunities and end-to-end fulfilment offerings, though the near-term evidence in FY26 was more visible in cost rationalisation and margin improvement.

Cost actions drove margin recovery in Q4

The P&L showed a clear cost narrative in Q4 FY26. Direct overheads were INR 360 crore versus INR 363 crore in Q4 FY25. Employee expenses declined to INR 53 crore from INR 56 crore. Other expenses dropped to INR 41 crore from INR 51 crore.

Those savings, along with the rise in gross profit, lifted EBITDA to INR 60 crore. At a full-year level, direct overheads increased with scale to INR 1,451 crore in FY26 from INR 1,363 crore in FY25. But employee expenses fell to INR 213 crore from INR 222 crore, and other expenses reduced to INR 161 crore from INR 175 crore. The combined effect was an EBITDA margin expansion to 11% from 10%.

Lease accounting view and balance-sheet indicators

The company also presented an EBITDA view after including lease rent expenses under Ind AS 116. On that basis, EBITDA (post lease expenses) was INR 7 crore in Q4 FY26 versus negative INR 3 crore in Q4 FY25. For FY26, it was INR 28 crore compared with INR 23 crore in FY25.

This matters because lease-related costs are a material part of the structure. As of March 2026, lease liabilities were INR 445 crore (non-current) and INR 146 crore (current). The year also saw an improvement in finance cost, which fell to INR 62 crore in FY26 from INR 75 crore in FY25. Borrowings reduced, with current borrowings at INR 84 crore versus INR 201 crore, and non-current borrowings at INR 18 crore versus INR 33 crore.

Cash flow: operating cash generation stayed healthy

Operating cash flow remained positive. Net cash from operating activities was INR 315 crore in FY26 versus INR 275 crore in FY25. Net cash used in financing activities was negative INR 373 crore, while net cash from investing activities was INR 56 crore. Closing cash and cash equivalents were INR 73 crore.

For investors tracking the quality of earnings, the combination of stronger EBITDA and healthy operating cash flow provides a counterpoint to weak reported PAT. But the same set of numbers also highlights how depreciation and below-the-line impacts can suppress net profit even when operations are improving.

Key numbers at a glance

Quarterly trend: revenue steady, profits volatile

Market impact and what investors may track next

The FY26 pattern is clear in the reported numbers: modest revenue growth, improved realisation and tighter overhead control supported EBITDA and margins, but PAT remained under pressure. The near-term investor focus is likely to stay on whether realisations hold up while volumes stabilise, and whether cost discipline continues across employee and other expense lines.

Management has highlighted integration between express and consultative logistics as a lever for yield and cost benefits. The next checkpoints will be whether that integration translates into measurable cross-selling outcomes, more consistent utilisation, and sustained margin quality rather than a one-year recovery. Allcargo’s results were announced on May 14, 2026, at the company’s board meeting, setting up subsequent quarters as an execution test on the stated synergy roadmap.

Conclusion

Allcargo Logistics delivered a margin-led quarter in Q4 FY26, with EBITDA margin improving to 12% even as revenue stayed flat at INR 514 crore. FY26 showed operating improvement, with EBITDA rising to INR 233 crore on INR 2,058 crore of revenue, but reported PAT dropped to INR 6 crore amid high depreciation and other below-the-line impacts. The next phase will hinge on sustaining realisations, keeping volumes steady, and demonstrating that the express-consultative integration can deliver durable operating gains.