Mahindra Logistics (MAHLOG) Q2 FY27 Posts Profit as Express Unit Hits Key Milestone
The logistics firm's Q2 profit swung positive, driven by a 24% revenue jump and the first-ever EBITDA-positive quarter for its express business.
Mahindra Logistics reported a consolidated profit of ₹28.87 crore in Q2 FY27, a sharp reversal from a loss a year ago. Revenue grew 24% to ₹2,095 crore, with the express logistics unit reaching a critical EBITDA-positive milestone.
Mahindra Logistics is moving from a multi-year turnaround into a growth phase, and its second-quarter results show the shift is gaining traction. The company posted a consolidated profit of ₹28.87 crore for Q2 FY27, a significant swing from a loss of ₹8.36 crore a year earlier. Revenue jumped 24.3% to ₹2,095.43 crore, led by its core contract logistics business and a standout performance from its express unit.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin
| Metric | CurrentQ2 FY27 | PreviousQ1 FY27 | Same quarter LYQ2 FY26 |
|---|---|---|---|
| Period | Sep 2026 | Jun 2026 | Sep 2025 |
| Revenue (₹ Cr) | 2,095.43YoY +24% | 2,002.88 | 1,685.27 |
| Profit (₹ Cr) | 28.87YoY +445% | 27.83 | -8.36 |
| Net Profit Margin | 1.4%YoY +380% | 1.4% | -0.5% |
The profit turnaround, while strong, comes with a caveat. The eye-catching -445.3% year-on-year profit growth figure is a mathematical quirk of swinging from a loss to a profit. The real story is the steady sequential improvement in profitability over the past five quarters, as shown in the table.
The Express Inflection Point
The quarter's most significant development was the performance of the express logistics business, MESPL (Rivigo). According to the company's investor presentation, it posted its first-ever EBITDA-positive quarter at ₹2.3 crores, compared to a loss of ₹9.1 crores a year ago. Revenue for the segment surged 69% year-on-year to ₹169 crores. Management, cited by Investing.com, called this a "critical inflection point" after years of steady improvement, driven by better pricing, lane utilization, and governance.
Growth Amidst Persistent Squeeze
While the express unit turned a corner, the broader business faces familiar cost pressures. Consolidated gross margin remained flat year-on-year at 10.1%, though it improved 40 basis points sequentially. Management acknowledged to analysts that manpower inflation from wage pressure and provident fund rule changes is a persistent headwind. Fuel cost pass-through to customers is now complete, but passing on labour costs is more difficult.
The company's largest segment, contract logistics, delivered robust 28% revenue growth to ₹1,688 crore, as per the earnings call. This was supported by new customer wins and deeper relationships with existing clients like anchor customer Mahindra & Mahindra. Other segments were mixed: mobility revenue grew 33%, but freight forwarding revenue fell 44% as it rebuilds its pipeline.
The Path Ahead
Guidance remains focused on the medium term. Capital expenditure for FY27 is guided at approximately ₹100 crore, with half already spent, primarily on contract logistics. Management has committed to a 100 basis point gross margin improvement from exit-FY26 levels, but CFO Isha Dalal clarified this is a medium-term target that "will take time" in the thin-margin contract logistics business.
The company is also launching a major technology platform, described as a business transformation project set to roll out in phases from Q4 FY27. This aims to automate processes and improve customer visibility. With its express business now EBITDA-positive and contract logistics scaling, the focus is on converting top-line growth into sustained, higher-quality profitability.
Key Points
- Mahindra Logistics reported a consolidated profit of ₹28.87 crore in Q2 FY27, reversing a year-ago loss, on revenue growth of 24.3%.
- The express logistics business (MESPL/Rivigo) achieved its first-ever EBITDA-positive quarter, a key milestone in its multi-year turnaround.
- Contract logistics revenue grew 28% year-on-year, but persistent manpower cost inflation is limiting gross margin expansion.
- Management targets a 100 bps gross margin improvement over the medium term and is investing ~₹100 crore in FY27 capex, largely in contract logistics.
- The company is launching a new technology platform to automate workflows and improve service integration for customers.
Hexa Perspective
The quarter confirms Mahindra Logistics is executing its shift from turnaround to acceleration. The express unit's move to EBITDA positivity removes a major drag and validates the restructuring effort. However, the stock's muted reaction post-results, noted by Investing.com, reflects investor focus on the pace of margin improvement.
The path forward hinges on two factors: sustaining the volume-led growth in express now that yield improvements have driven the initial profit, and successfully navigating the stubborn cost inflation in its larger contract logistics division. The promised margin expansion is a medium-term game, and the next few quarters will test whether revenue growth can outrun cost pressures long enough for operating leverage to truly kick in.
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