Mahindra Logistics (MAHLOG) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 revenue grew 11.5% year-on-year to INR 1,521 crore, led by warehousing, 3PL contract logistics, cross border, and last mile delivery segments.

• EBITDA rose to INR 66 crores from INR 54 crores YoY, but consolidated PAT was INR 8.5 crores, down from INR 18.6 crores YoY, and consolidated net loss after tax was INR 9.61 crores, improved from INR 15.46 crores loss YoY.

• Expansion in warehousing and last mile capacity ahead of the festive season led to higher manpower costs and impacted operating earnings.

• Dividend of Rs. 2.50 per share for FY24 was paid in Q2 FY25, resulting in an outflow of Rs. 18.01 crores.

• Subsidiaries showed improved traction and profitability, with Whizzard achieving three consecutive profitable quarters.

Financial highlights

• Q2 FY25 consolidated revenue: INR 1,521 crores (up 11.5% YoY); warehousing revenue: INR 306 crores (up 19% YoY); standalone revenue: INR 1,235.92 crores.

• Gross margin: 9.17% (down from 9.25% YoY); EBITDA: INR 66 crores (up from INR 54 crores YoY); consolidated net loss after tax: INR 9.61 crores (vs. INR 15.46 crores loss YoY).

• PAT for MLL: INR 8.5 crores (down from INR 18.6 crores YoY); express business loss: INR 24.2 crores (4% improvement QoQ).

• Freight forwarding revenue: INR 86.8 crores (up 60% YoY); PAT: INR 2.1 crores (up from breakeven YoY).

• Basic and diluted EPS (consolidated) for Q2 FY25: Rs. (1.50); standalone: Rs. 1.18.

Outlook and guidance

• Management expects a stronger H2 FY25, supported by festive demand and ongoing margin improvement initiatives.

• Express business breakeven delayed to end of FY25, requiring 35-40% volume growth; challenging market conditions persist.

• Focus remains on reducing unabsorbed warehouse space and driving operating improvements.

• Margin expansion targeted through productivity improvements and digital platform investments.

• Path to 18% ROE by FY26, with emphasis on contract logistics leadership and non-M&M business expansion.