Mahindra Logistics Limited (MLL), a leading third-party logistics solutions provider, has announced ambitious growth plans alongside a significant capital allocation decision. The company has projected revenue of ₹14,000 crore and an EBITDA margin of 8-9 percent by FY27, while its board of directors has approved an investment of up to ₹50 crore in its wholly-owned subsidiary, MLL Express Services Private Limited (MESPL).

Growth Strategy

To achieve its FY27 targets, Mahindra Logistics plans to:

1. Expand its 3PL warehousing capacity to 30 million square feet
2. Scale its EV fleet to 3,500 vehicles
3. Establish new multimodal hubs

Investment Details

The ₹50 crore investment in MESPL will be made through a subscription to a rights issue, comprising up to 5,00,00,000 equity shares with a face value of ₹10 each. The full amount of the issue price will be payable in cash upon application.

Purpose of Investment

According to the company's disclosure, the primary objectives of this capital infusion are:

1. Meeting working capital requirements
2. Supporting continuing operations
3. Addressing general corporate purposes of MESPL

Subsidiary Overview

MESPL, which operates under the brand name "Rivigo by Mahindra Logistics", provides B2B Express logistics services across the value chain. The subsidiary has a significant presence in India, covering over 19,000 pin codes and operating 260+ processing centers and branches nationwide. MESPL utilizes tech-differentiated solutions to enhance its service offerings.

Financial Performance

The turnover of MESPL for the financial year ended March 31, 2023, stood at ₹363.83 crore, indicating the substantial scale of its operations within the Mahindra Logistics ecosystem.

Strategic Implications

This investment decision underscores Mahindra Logistics' commitment to strengthening its express delivery segment and aligns with its broader growth strategy. By injecting additional capital into MESPL and expanding its warehousing and EV fleet capabilities, MLL aims to enhance its operational capabilities and potentially expand its market presence in the logistics sector.

Regulatory Compliance

The company has stated that this transaction falls within the ambit of related party transactions but is conducted at arm's length. As MESPL is a wholly-owned subsidiary, the transaction is exempt under Regulation 23(5) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Conclusion

The ₹50 crore investment in MLL Express Services, coupled with Mahindra Logistics' growth targets, reflects the company's strategic focus on bolstering its express delivery capabilities and overall market position. This move may enhance the company's competitive position in the logistics landscape, particularly in the B2B express segment.

Mahindra Logistics Limited (MLL) has reported the appropriate utilization of proceeds from its recent rights issue, as confirmed by a monitoring agency report from CARE Ratings for the quarter ended September 30, 2025.

Rights Issue Details

MLL successfully raised ₹749.27 crore through a rights issue conducted from July 31 to August 14, 2025. The company allocated the funds as follows:

Utilization of Funds

As of the reporting date, MLL has fully utilized ₹559.80 crore of the total proceeds:

The debt repayments were distributed across Mahindra Logistics and its subsidiaries:

• Mahindra Logistics Limited: ₹290.42 crore (including ₹150.00 crore towards an inter-corporate deposit from Mahindra & Mahindra Limited)
• MLL Express Services Private Limited: ₹263.86 crore (including ₹100.00 crore towards an inter-corporate deposit from Mahindra & Mahindra Limited)
• V-Link Freight Services Private Limited: ₹2.02 crore

Remaining Funds

The remaining ₹189.47 crore has been deployed as follows:

• ₹186.77 crore in fixed deposits with Kotak Mahindra Bank, earning 6.25% returns
• ₹2.70 crore in the allotment account

Monitoring Agency Report

CARE Ratings, acting as the monitoring agency, reported no deviations from the stated objectives of the rights issue. The agency confirmed that all utilization aligns with the rights issue objects as outlined in the offer document.

Corporate Actions

In addition to the rights issue, MLL has taken the following corporate actions:

1. Acquired 26,38,60,000 equity shares (₹10 each) of MLL Express Services Private Limited for ₹263.86 crore on August 18, 2025.
2. Acquired 20,20,000 equity shares (₹10 each) of V-Link Freight Services Private Limited for ₹2.02 crore on August 18, 2025.

These strategic moves, coupled with the debt repayment, indicate MLL's focus on strengthening its financial position and expanding its operational capabilities within the logistics sector.

The company's judicious use of the rights issue proceeds, as validated by the monitoring agency report, demonstrates its commitment to financial prudence and transparency in its operations.