Allcargo Logistics FY26 Annual Earnings Summary
3 quarters covered · ₹1,567 Cr revenue · ₹20 Cr PAT · 7.8% average EBITDA margin.
Quarter-by-quarter progression
Management promises made during the year
Promise tracking available after 2+ quarters of coverage.
Risks flagged during the year
Express volumes have remained around 3 lakh tons per quarter for several years, limiting scalability.
Q2 FY26 · mediumManagement noted last year's general price increase (GPI) did not meet expectations; this year's GPI may face similar challenges.
Q2 FY26 · mediumTop 10 customers contribute over 50% of contract logistics revenue, posing concentration risk.
Q3 FY26 · mediumAnalyst raised concern about price cuts by competitors like Delhivery; management acknowledged yield management challenge.
Q3 FY26 · mediumContract logistics growth muted as certain e-commerce customers deferred expansion plans.
Q3 FY26 · mediumRecent resignations of MD, CFO, and CS in Nov 2025 raised questions about leadership stability.
Q4 FY26 · mediumRecent increase in petrol and diesel prices could pressure margins if pass-through mechanisms are not fully effective.
Q4 FY26 · mediumExpress volumes remained flat in FY26 with sequential moderation, indicating potential demand challenges.
Q4 FY26 · mediumManagement expressed caution on near-term outlook due to current geopolitical scenario, which could affect trade flows.
Q2 FY26 · lowSynergies from the merger of express and contract logistics may take time to materialize fully.
What changed through the year
Q2 FY26 · 20% EBITDA CAGR through FY28
Management reiterated guidance of 20% CAGR in EBITDA from current levels up to FY28.
Q2 FY26 · 10% CAGR in gross margin
Gross margin expected to grow at 10% CAGR year-on-year.
Q2 FY26 · Revenue CAGR of 10-11%
Revenue growth guidance of 10-11% CAGR, consistent with current performance.
Q3 FY26 · Q4 FY26 sequential improvement expected
Management expressed confidence that Q4 will be better than Q3 due to seasonality and operational improvements.
Q3 FY26 · Vision 2030: 20% revenue CAGR from FY25 base
Targeting 20% compound annual growth rate in revenue from FY25 base, driven by 50:50 volume-yield mix.
Q3 FY26 · Tech investment budget of ₹12 crore for FY27
Annual technology outlay of ₹12 crore for AI, control tower, and service quality enhancements.
Q3 FY26 · Express business EBITDA growth to continue
Express profitability expected to sustain improvement through yield management and cost control.
Q4 FY26 · EBITDA and PBT to grow ahead of revenue in coming quarters
Management expects EBITDA and PBT growth to outpace revenue growth as integration benefits and pricing actions flow through.
Q4 FY26 · Allcargo Global listing expected within a month
Listing of Allcargo Global is expected in about a month after filing revised information memorandum with audited financials.
Q4 FY26 · Add 0.5 million sq ft warehouse space in FY27
Plans to add half a million square feet of warehouse space, largely on an asset-light approach.