Mahindra Logistics Q3 Results: Profit of ₹33 Million Ends Loss Streak

Introduction to Q3 Performance

Mahindra Logistics has announced a significant financial turnaround, reporting a consolidated net profit of ₹33 million (₹3.3 crore) for the third quarter of fiscal year 2026. This result marks a crucial return to profitability, reversing a consolidated net loss of ₹90 million (₹9.0 crore) recorded in the same quarter of the previous fiscal year. The positive swing of ₹123 million highlights a substantial improvement in the company's operational and financial health, officially ending a streak of 11 consecutive loss-making quarters.

Detailed Financial Breakdown

The company's performance in Q3 FY26 was robust across key financial metrics. Revenue from operations saw a strong year-on-year increase of 19.1%, rising to ₹1,898 crore from ₹1,594.2 crore in Q3 FY25. This growth indicates sustained demand for its logistics and supply chain services. The operational efficiency gains were clearly visible in the earnings before interest, taxes, depreciation, and amortization (EBITDA), which grew by 39.5% to ₹102.79 crore compared to ₹73.69 crore in the corresponding period last year. Consequently, the EBITDA margin expanded by 80 basis points, moving from 4.62% to 5.42%, reflecting better cost management and the benefits of scale.

Management Commentary on the Turnaround

Hemant Sikka, the Managing Director and CEO of Mahindra Logistics, described the quarter as a "defining inflection point" for the company. He attributed the return to profitability to a combination of sharper execution, stronger cost discipline, and a more focused growth strategy. Sikka noted that over the past few months, the company has worked to stabilize its leadership, improve organizational alignment, and reinforce execution rigor on the ground. This strategic realignment has been instrumental in achieving the positive quarterly results.

Performance for the Nine-Month Period

Looking at the performance for the first nine months of FY26, the positive trend continues. Consolidated revenue for the period increased by 15% year-on-year, reaching ₹5,207.9 crore from ₹4,535.3 crore in the same period of the previous year. The consolidated profit after tax (PAT) loss for the nine-month period narrowed significantly to ₹11.9 crore from a loss of ₹29.1 crore a year ago. This demonstrates that the improvements seen in the third quarter are part of a broader, sustained recovery effort throughout the fiscal year.

Operational Strength and Business Verticals

The company's operational capabilities remain a key strength. During Q3 FY26, its mobility business managed over 10,000 trips per day across both B2B and B2C segments, deploying more than 5,000 vehicles daily. This scale of operations underscores its significant presence in the market. The management's focus on operational excellence, customer retention, and network optimization has been a core part of its strategy to drive sustainable value.

Market Reaction and Stock Performance

The positive financial results were well-received by the market. On January 27, the day the results were likely factored in, the shares of Mahindra Logistics Ltd closed at ₹299 on the NSE, marking an increase of ₹8.70, or 3.00%. While the stock has seen volatility over the past year, with a one-year return of 17.57%, the long-term performance remains strong, with a five-year return of 327.10%. The recent quarterly performance provides a fresh catalyst for investor confidence.

Industry Context and Future Outlook

The Indian logistics sector continues to face challenges, including rising fuel costs, wage inflation, and intense pricing pressure, particularly from e-commerce focused players. In this competitive environment, Mahindra Logistics' ability to improve margins and return to profitability is a noteworthy achievement. The company's strategy of investing in infrastructure and technology to build scale appears to be yielding results. The path forward will depend on its ability to translate this operational leverage into consistent bottom-line growth. Management has signaled its commitment to maintaining this momentum in the second half of the fiscal year.

Conclusion

Mahindra Logistics' Q3 FY26 results represent a significant milestone, marking a decisive return to profitability after nearly three years of losses. The strong revenue growth, coupled with margin expansion, demonstrates the success of its strategic realignment and operational discipline. While industry headwinds persist, the company's improved performance and clear management focus position it for a more stable and profitable future.