Mahindra Logistics · forward-looking guidance across the available source record.
Guidance tracker
Management expressed high confidence in achieving EBITDA break-even in the B2B Express business (VIGO) during the current fiscal year, building on gross margin turning positive and loss reducing from Rs 11.8 Cr to Rs 1.6 Cr.
CFO indicated expectation of 150-200 bps gross margin expansion across the overall business from a medium-term perspective, offsetting Q1 headwinds from site ramp-ups and manpower costs.
The 1.6 million sq ft excess warehousing space identified in Q1 FY26 is on track to be reduced by 95% by September 2026, improving asset utilization and profitability.
Company is withdrawing from Mumbai airport (not meeting internal thresholds) while doubling down on Delhi and Noida airports, where MLL holds preferred partner status and will scale fleet in line with flight additions.
CFO Isha Daral stated that with ongoing cost interventions, customer selection discipline, and rate renegotiations, margins are expected to keep expanding in the near to medium term. Approximately 50% of price correction work across the customer base is complete.
Management indicated they are very close to achieving break-even in the express (MEPL) business, with gross margin improving from ₹0.2 crore to ₹2.4 crore between Q2 and Q3. Multiple operational levers including volume growth, lane utilization, and yield improvement are being deployed.
CEO Hman Sika reiterated full commitment to reducing white space by approximately 95% by September 2026, stating they are slightly ahead of the quarterly glide path. Specific progress metrics were not disclosed to avoid pricing pressure.
The JV with Japanese logistics company Kono has its management team in place and is in active discussions with large Japanese companies in India. Management expects to show some wins in the next year as deal cycles with Japanese clients typically take longer.