Mahindra Logistics: A Q3 FY26 Turnaround Story

Mahindra Logistics Limited (MLL) has marked a significant milestone in its journey, reporting a return to profitability in the third quarter of Fiscal Year 2026 (Q3 FY26) after a challenging period of 11 consecutive quarters of losses. This turnaround reflects the company's intensified focus on sharper execution, stringent cost discipline, and a more focused growth strategy. The consolidated revenue for Q3 FY26 stood at INR 1,898.0 crore, registering a robust 19% year-on-year (YoY) growth. This growth, coupled with strategic operational improvements, has propelled the company back into the black, with a reported Profit After Tax (PAT) of INR 3.3 crore for the quarter.

The company's performance was bolstered by strong volume growth across its key business segments, particularly in the Auto and Farm sectors, as well as its Express, Mobility, and Freight businesses. The Supply Chain Management (SCM) segment, which encompasses 3PL, Last Mile Delivery, Freight Forwarding, and Express services, contributed significantly with a revenue of INR 1,791.9 crore, representing 94.41% of the total consolidated revenue. Within SCM, the 3PL business alone generated INR 1,502.0 crore, growing by 20% YoY, driven by strong performance in the Automotive, Farm, and Consumer sectors. The Mobility business also demonstrated impressive growth, with revenue reaching INR 106.1 crore, a 38% increase YoY.

Segmental Performance Highlights

The Express business, operating under MESPL Rivigo, showcased a remarkable recovery. It recorded a 19% YoY uptick in volumes while maintaining stable yield levels. The gross margin for this segment expanded significantly from 0.2% in Q3 FY25 to 2.4% in Q3 FY26, a clear indication that the multiple initiatives under execution, such as improved service levels, boosted lane utilization, and enhanced unit economics, are yielding positive results. Management noted that the Express business is now very close to achieving EBITDA breakeven.

Conversely, the Last Mile Delivery business faced headwinds, with revenue declining to INR 81.6 crore. This was primarily attributed to pricing pressures and strategic decisions to exit certain unviable sites. Despite these challenges, the company is actively engaged in discussions with customers and expects profitability in this segment to improve from Q4 FY26 onwards through sustained efforts in rate renegotiation and operational excellence. The Freight Forwarding business also performed well, with revenue growing by 33% YoY to INR 94.8 crore, and gross margins increasing by 36% YoY, benefiting from improved trade flows and a diversified customer base, despite global uncertainties.

Here is a financial summary of Mahindra Logistics Limited's Q3 FY26 performance:

Note: PAT excluding exceptional item of Statutory impact of New Labor Codes amounting to Rs.7.4 Cr. Reported PAT Q3FY26 Rs 3.3 Cr.

Strategic Execution and Future Outlook

Management emphasized that the transformation underway at Mahindra Logistics is