Mahindra Logistics (MAHLOG) Q4 24/25 earnings summary

Executive summary

• Leadership transition: Rampraveen Swaminathan stepped down as CEO, Hemant Sikka appointed as new CEO, bringing experience from Mahindra's farm sector.

• FY2025 marked by economic headwinds, regulatory uncertainties, and global disruptions, but positive tailwinds expected from interest rate cuts and tax relief.

• Achieved 8% YoY revenue growth in Q4 FY25, led by contract logistics and Express segments; full-year revenue grew 11% YoY.

• Board approved audited consolidated and standalone results for Q4 and FY25; auditors issued unmodified opinions.

• Dividend of Rs. 2.50 per share recommended, subject to shareholder approval.

Financial highlights

• Q4 FY25 consolidated revenue: Rs. 1,570 crore, up 8.2% YoY; full-year FY25 revenue: Rs. 6,104.83 crore, up 11% YoY.

• Q4 FY25 EBITDA: Rs. 78 crore, up 37% YoY; Q4 net loss after tax: Rs. 5.29 crore; FY25 net loss after tax: Rs. 30 crore, improved from Rs. 53.09 crore in FY24.

• Gross margin for Q4 FY25: 9.5%, up from 9.4% last year; operating margin for FY25: 4.65%, up from 4.16% in FY24.

• Warehousing segment revenue rose 15% YoY to Rs. 297 crore in Q4; realization at Rs. 59.2/sq.ft./month.

• Net cash from operating activities for FY25 was Rs. 343.17 crore, up from Rs. 226.86 crore in FY24.

Outlook and guidance

• 1 million sq ft of new warehousing space expected to be fully occupied before Diwali.

• Express business targeting 6,000–7,000 tons per month for EBITDA breakeven by end of Q2 FY2026.

• Targeting Rs. 10,000 crore revenue and 18% ROE by FY26, focusing on integrated logistics, technology, and MESPL turnaround.

• Strategic pause in warehousing expansion after current projects to focus on absorption and recalibration.

• Board recommended a dividend of Rs. 2.50 per share, reflecting confidence in future prospects.