Allcargo Logistics Reports Q2 Net Profit of ₹18 Crore on Margin Improvements

MUMBAI — Allcargo Logistics has reported a net profit of ₹18 crore for the quarter ending September, turning around from a net loss of ₹4 crore recorded in the corresponding period of the previous fiscal year.

During the quarter, the company's revenue increased by 3 percent to ₹555 crore, compared to ₹537 crore in the same period last year. Performance metrics showed broader operational gains, with EBITDA rising 24 percent to reach ₹77 crore, up from ₹62 crore previously.

According to the company, the return to profitability was driven by a strategic focus on strengthening operating margins across its domestic logistics operations. In the Express Distribution segment, revenue growth and yield improvements were supported by steady progress in service levels, enhanced customer engagement, and better network efficiencies, despite some moderation in growth during the quarter.

In the Consultative Logistics segment, gross margins saw sequential improvements. The company attributed this to higher throughput from existing customers, efficient service delivery, improved warehouse utilization, and ongoing cost optimization measures.

Ketan Kulkarni, Managing Director and Chief Executive Officer of Allcargo Logistics, stated that the improved profitability and margins highlight the advantages of maintaining pricing discipline, effective cost recovery, and process optimization.

“Our goal now is to leverage customer centric service delivery to drive volume growth while maintaining the pricing gains achieved over the past few quarters,” Kulkarni added.

Allcargo Logistics noted that it has observed a recovery in business volumes and anticipates this positive momentum to continue. The combination of higher volumes from existing clients, better warehouse utilization, and strict cost management are expected to continue supporting the company's margins moving forward.

"Allcargo Logistics' return to profitability demonstrates the critical role that operational efficiency, cost optimization, and pricing discipline play in the logistics sector. By focusing on asset utilization and tighter cost management within both Express Distribution and Consultative Logistics, the company has successfully navigated market pressures. For businesses across the logistics and supply chain ecosystem, this turnaround highlights how process optimization and steady customer engagement can sustainably protect and grow margins during economic shifts." — Dr. Shishir Gupta, Founder & CEO, StartupLanes