Mahindra Logistics (MAHLOG) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 revenue grew 11.5% year-over-year to INR 1,521 crore, led by warehousing, supply chain management, and strong performance in contract logistics, cross border, and last mile delivery segments.

• Gross margin was 9.17% (INR 139 crore), with EBITDA at INR 66 crore, but PAT declined to INR 8.5 crore and consolidated net loss after tax narrowed to INR 9.61 crore.

• 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

• Consolidated Q2 FY25 revenue: INR 1,521 crore (Rs. 1,521.10 crores), up 11.5% year-over-year.

• Gross margin: 9.17% (INR 139 crore); EBITDA: INR 66 crore; PAT: INR 8.5 crore; consolidated net loss after tax: Rs. 9.61 crores.

• Standalone Q2 FY25 revenue: Rs. 1,235.92 crores; net profit after tax: Rs. 8.54 crores.

• Freight forwarding/cross border revenue up 60% to INR 86.8 crore; last mile delivery revenue up 107% to INR 100 crore.

• Dividend payout of Rs. 2.50 per share for FY24 completed in Q2 FY25.

Outlook and guidance

• Management expects a stronger H2 FY25, driven by festive demand, volume uptick in automotive and FMCG, and margin improvement initiatives.

• Express business breakeven delayed to end of 2025, requiring 35-40% volume growth.

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

• White space in warehousing being reduced, with half contracted and expected to contribute to earnings by mid-Q4.