Allcargo Logistics Unveils Cost Allocation Strategy Post-Demerger Approval

Allcargo Logistics Limited has provided crucial guidance to its shareholders regarding the calculation of cost acquisition for equity shares following a significant corporate restructuring. This move comes in the wake of the National Company Law Tribunal's approval of the company's composite scheme of arrangement on October 10, 2025.

Key Highlights of the Demerger Scheme

Approval Date: October 10, 2025
Appointed Date for Demerger: October 1, 2023
Record Date: November 12, 2025

Cost Allocation Breakdown

The demerger allocates the cost of acquisition between Allcargo Logistics and the resulting company, Allcargo Global Limited, as follows:

Company	Percentage of Cost Allocation	Net Book Value (₹ in lakhs)
Allcargo Logistics Limited	87.94%	124220.00
Allcargo Global Limited	12.06%	14978.00

This allocation is based on the net book value of assets as of the appointed date (October 1, 2023).

Implications for Shareholders

Share Allotment: Shareholders of Allcargo Logistics will receive one equity share of ₹2 each in Allcargo Global Limited for every one fully paid-up equity share of ₹2 held in Allcargo Logistics.
Tax Neutrality: The demerger satisfies conditions under Section 2(19AA) of the Income-tax Act, 1961, making it tax-neutral for shareholders under Section 47(vid).
Cost of Acquisition: For capital gains calculations, 12.06% of the original cost of Allcargo Logistics shares should be allocated to Allcargo Global Limited shares.
Acquisition Date: The acquisition date of new shares in Allcargo Global Limited will be considered the same as the original Allcargo Logistics shares for tax purposes.

Financial Snapshot

While the demerger is a significant event, it's important to consider Allcargo Logistics' overall financial position. As of March 2025:

Metric	Value (₹ in crore)	YoY Change
Total Assets	7599.00	3.84%
Shareholders' Capital	2422.60	-3.93%
Current Assets	4084.80	8.26%
Current Liabilities	4100.10	17.68%

The company has shown resilience with a slight increase in total assets despite challenging market conditions.

Conclusion

This corporate action represents a strategic move by Allcargo Logistics to optimize its business structure. Shareholders are advised to consult with tax professionals to understand the specific implications on their investments. The company's proactive communication on cost allocation demonstrates its commitment to transparency and shareholder interests amidst this significant restructuring.

Note: All financial figures are based on the latest available data as of March 2025.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-5.28%	-21.24%	+16.97%	-59.80%	-27.21%	+63.98%

Allcargo Logistics Limited , a prominent player in the Indian logistics sector, has reported a significant turnaround in its financial performance for the second quarter of fiscal year 2026. The company achieved a profit before tax of INR 9.00 crores, marking a positive shift from losses in previous quarters. This improvement comes on the heels of the completion of its composite scheme that restructured the company's operations.

Key Financial Highlights

Revenue Growth: The company reported an 11% year-on-year increase in revenue, reaching INR 537.00 crores for Q2 FY26.
EBITDA Performance: EBITDA saw a substantial rise of 27% year-on-year, amounting to INR 62.00 crores.
Volume Handled: Allcargo managed a total volume of 3.26 lakh metric tons, up 6% year-on-year and 11% quarter-on-quarter.

Segment-wise Performance

Express Business

Metric	Q2 FY26	Q2 FY25
Revenue	INR 377.00 crores	INR 355.00 crores
EBITDA	INR 17.00 crores	INR 13.00 crores

Consultative Logistics Business

Metric	Q2 FY26	Q2 FY25
Revenue	INR 160.00 crores	INR 128.00 crores
EBITDA	INR 46.00 crores	INR 38.00 crores

Warehouse Space: 8.4 million square feet under management

Restructuring Impact

The company's composite scheme, which became effective on November 1, 2025, has led to significant changes:

Demerger of international business into Allcargo Global.
Merger of Express and Consultative Logistics businesses into Allcargo Logistics.
Elimination of the holding structure, resulting in a single operating listed entity.

Financial Adjustments

The reported financials include certain one-time items that affected the bottom line:

Amortization charge of INR 12.00 crores in Q2 related to the Gati acquisition, which will not recur in future quarters.
One-time expenses of INR 15.00 crores related to the composite scheme.

Adjusting for these items, the effective profit for Q2 FY26 stands at INR 9.00 crores.

Management Commentary

Ketan Kulkarni, Managing Director and CEO of Allcargo Logistics, expressed optimism about the company's performance: "Our Express business has delivered the highest ever quarter in the company's history, both in terms of revenue and volume. Our Consultative Logistics business has also delivered its highest ever quarter and monthly revenue."

Future Outlook

The management has reiterated its guidance for FY28 and FY30, projecting:

A CAGR of 20% in EBITDA up to FY28
A 10% CAGR growth in gross margins

Technological Advancements

Allcargo Logistics is focusing on technological enhancements to drive efficiency:

Deployment of cloud-native solutions
Mobile-first approach for customer and partner interactions
Introduction of control towers and Hub Eye systems for improved logistics management
Revamping of Warehouse Management Systems (WMS)

Market Position

The company is leveraging its strong position in chemical logistics and aims to expand into retail and FMCG sectors. It is also exploring synergies between its Express and Consultative Logistics divisions to offer integrated services to multinational and Indian companies.

As Allcargo Logistics navigates through its post-restructuring phase, the company appears poised for growth, backed by strategic initiatives and a focus on technological innovation in the evolving logistics landscape.