Allcargo records ₹480mn turnaround and 12% profit growth in H1

Allcargo Logistics Limited, a prominent integrated logistics provider operating extensively through its domestic supply chain, express distribution, and consultative logistics businesses, has announced its consolidated financial results for the period ended 30 September 2026. The company reported a significant improvement in its overall profitability, driven by a ₹480 million turnaround and a reported profit after tax (PAT) of ₹330 million for the first half of the financial year 2027 (H1 FY27).

The Mumbai-headquartered company attributed this robust financial recovery to consistently improving customer service levels, strict pricing discipline, and heightened operational efficiencies across its nationwide network. The logistics major's gross profit witnessed a 12% year-on-year growth in H1 FY27, whilst its earnings before interest, taxes, depreciation, and amortisation (EBITDA) surged by an impressive 31% during the same six-month period.

Focusing specifically on the second quarter of the financial year (Q2 FY27), the overall performance was equally commendable. Allcargo Logistics reported a PAT of ₹190 million, marking a highly healthy 487% year-on-year growth when compared with a net loss of ₹50 million recorded in the corresponding quarter of the previous financial year (Q2 FY26). The company also reported a pre-exception profit before tax (PBT) of ₹240 million in Q2 FY27. This represents a robust 167% year-on-year growth compared with the ₹90 million achieved in Q2 FY26.

Revenue for the integrated logistics provider grew by 3.4% year-on-year in Q2 FY27, contributing to an overall 7.1% year-on-year revenue increase for H1 FY27. Furthermore, gross profit for the second quarter grew by 13% year-on-year. The EBITDA margin for H1 FY27 stood firm at 13.4%.

This marked improvement heavily reflects the company's continued and deliberate focus on strengthening operating margins across its diverse domestic logistics businesses. In the express distribution segment, sustained and consistent progress in service levels, enhanced customer engagement, and improving network efficiencies have collectively enabled strong revenue growth and yield improvement. Shipment volumes within this specific segment remained broadly stable on a sequential basis, standing at approximately 311,000 tonnes in Q2 FY27, compared with 312,000 tonnes in Q1 FY27. Customer-segmentation initiatives, loyalty programmes, service-quality improvements, and ongoing network optimisation are actively supporting a wider volume recovery across the board.

In the consultative logistics division, higher throughput from existing customers—buoyed by efficient service, improved warehouse utilisation, and targeted cost optimisation—contributed to a sequential improvement in gross margins. Segment revenue increased by ₹90 million year-on-year during the quarter. This was primarily supported by higher throughput and the successful recovery of additional costs from customers.

Commenting on the performance, Mr. Ketan Kulkarni, Managing Director and Chief Executive Officer, Allcargo Logistics Limited, said, “Our overall H1FY27 performance demonstrates a continued progress in strengthening the fundamentals of our domestic logistics business. The improvement in profitability and margins underlies the benefits of pricing discipline, cost recovery and process optimisation.

In Express Distribution, while growth moderated during this quarter, we adopted measures to improve customer engagement, service quality and network efficiency. Our goal now is to leverage this customer centric service delivery to drive volume growth while maintaining the pricing gains achieved over the past few quarters.

As we have entered the festive season, we are witnessing a recovery in volumes and expect this momentum to continue. In Consultative Logistics, higher volume from existing customers, improved warehouse utilisation and tighter cost management are supporting margins.

In H2FY27, profitable growth along with revenue expansion remains our priority. To attain that, we will continue to our three-pronged strategy – further improving service levels, increasing capacity utilisation and reducing operating costs.”

Looking ahead, the company holds a highly optimistic outlook, expecting the traditional festive-season demand to act as a significant catalyst for growth in Q3 FY27. Core sectors such as automotive, electronics, heavy engineering, and e-commerce are anticipated to contribute heavily to overall volume growth. Strategic priorities for the second half of the year (H2 FY27) remain sharply focused on restoring volume growth, protecting operational yields, improving capacity utilisation across all hubs, and significantly strengthening cash generation capabilities to ensure long-term stability.