Allcargo Logist.

Allcargo Logistics has concluded its composite scheme for restructuring. The international business of Allcargo Logistics was demerged into Allcargo Global effective November 1st, with the record date for stock trading being November 12th. The businesses of Express and Consultative Logistics were merged into Allcargo Logistics, eliminating the entire holding structure to operate as a single listed entity. Gati shareholders are expected to receive swap shares this week, and Allcargo Global shares are anticipated to be listed by January 2026 after regulatory approvals.

For Q2 FY26, Allcargo Logistics reported a consolidated revenue of INR537 crores, marking an 11% year-on-year and 9% quarter-on-quarter increase. Gross profit stood at INR154 crores, up 3% YoY and 5% QoQ. Consolidated EBITDA reached INR62 crores, a significant 27% YoY and 22% QoQ growth. After adjusting for non-recurring^📎 amortization and exceptional scheme-related expenses, the company achieved a positive PBT of INR9 crores, compared to a loss in prior periods. Total volume handled was 3.26 lakh metric tons, growing 6% YoY and 11% QoQ.

The Express Business delivered its highest ever quarter in both revenue and volume, with revenue at INR377 crores (up 6.2% YoY from INR355 crores) and EBITDA at INR17 crores (up 30.8% YoY from INR13 crores). It was noted as the only Express company in the top 5 to grow market share in Q2 over Q1. The Consultative Logistics Business also achieved its highest ever quarterly and monthly revenue, reaching INR160 crores (up 25% YoY from INR128 crores) with an EBITDA of INR46 crores (up 21.1% YoY from INR38 crores), managing 8.4 million square feet of warehouse space.

India's macroeconomic environment remains robust, with GDP growth forecast at 6.6%, driven by strong domestic demand and infrastructure investments. E-way bill generation hit a record high of 132 million in September 2025, a 21% YoY increase, and GST collections for October reached INR1.95 lakh crore, up 4.6% YoY. These indicators underscore continued strength in domestic trade and healthy demand, providing a tailwind for the logistics sector.

Management clarified that Q2 FY26 profits were impacted by two non-recurring^📎 items: INR12 crores in amortization of acquired intangibles from the Gati Limited acquisition, which will no longer be required post-merger, and INR15 crores in one-time^📎 exceptional expense^📎s related to the composite scheme. Excluding these, the PBT from operating activities showed marked improvement. These adjustments are expected to lead to a cleaner and more representative PBT in future quarters.

The company is focused on realizing operating leverage, with revenue expanding at a faster pace than SG&A costs, which have actually shrunk. Key synergy levers include the integration of Express and Consultative Logistics businesses, allowing for cross-selling of Express B2B solutions to existing Consultative Logistics clients. This integrated approach aims to boost sales, increase average order value, manage expenses better, and improve overall efficiency.

Allcargo Logistics is heavily investing in technology to drive revenue growth, productivity enhancement, and cost optimization. Initiatives include developing a new mobile-first booking app, enhancing last-mile delivery apps, and implementing tech-enabled solutions for middle-mile operations like control towers, Hub Eye, and Gate Scan for the Express business. For Consultative Logistics, the WMS system is being revamped and is expected to go live within the next 90 days, supporting expansion into new verticals like retail and FMCG.