Allcargo Logistics Q4 FY26 earnings call

Allcargo Logistics reported a consolidated revenue of INR514 crores for Q4 FY26, broadly in line with the previous quarter's INR516 crores. For the full fiscal year 2026, revenue grew 5% YoY to INR2,058 crores. EBITDA for Q4 FY26 was INR60 crores, a strong 41% growth from the previous year, contributing to a full-year EBITDA of INR233 crores, up 16% YoY, with margins improving from 10% to 11%.

The Express business unit handled 3 lakh metric tons in Q4 FY26, with realization per metric ton increasing by 3% YoY and 4% sequentially to INR12,037. While full-year Express revenue grew marginally to INR1,442 crores, management emphasized a strategic shift towards profitable growth. Initiatives included GPI activity, metro congestion charges, and AER charges for difficult pin codes, leading to revenue growth outpacing tonnage growth by focusing on quality customers and yield improvement.

The Consultative Logistics business demonstrated robust growth, with full-year FY26 revenue increasing 17% YoY to INR615 crores. The total warehouse space under management reached 8 million square feet as of March 2026. The company plans to add an additional 0.5 million square feet of warehouse space in the next year, primarily utilizing an asset-light operating lease strategy to conserve cash and enhance gross margin share.

The significant 16% YoY EBITDA growth for FY26 was attributed to a combination of factors including a 2% increase in gross profit, enhanced operating efficiency, and the successful integration of Express and Consultative Logistics. Furthermore, the company undertook significant rationalization of employee and other expenses, which played a crucial role in achieving the targeted EBITDA trajectory.

Allcargo Logistics is actively strengthening its network and operational capabilities to capitalize on the evolving consumption trends, particularly in e-commerce and quick commerce. The company currently handles over 10 million packages per month in this segment, operating sort centers, fulfillment centers, and cross-dock centers. They partner with the top 3 e-commerce players and top 3 quick commerce companies in India, primarily under the Consultative Logistics segment.

Management confirmed that all necessary regulatory approvals from stock exchanges and SEBI have been received for the listing of Allcargo Global. The revised information memorandum, including audited annual financials, is expected to be filed within the next two weeks, with the listing anticipated in approximately one month. Despite a cautious near-term outlook due to geopolitical factors, the company remains optimistic for Q1 FY27, expecting EBITDA and PBT to grow ahead of revenue and further margin improvement.

The domestic economy is expected to grow at about 6.5% in FY '27, supported by strong consumption, sustained public capex, and improving private investments, according to the IMF. High-frequency indicators remain encouraging, with E-way bill generation reaching 140.6 million in March 2026 (up 13% YoY) and GST collections at INR1.78 lakh crores (up 8.2% YoY), signaling sustained momentum in domestic trade and supply chain activity.