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

Consultative Logistics Business

• 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:

1. Demerger of international business into Allcargo Global.
2. Merger of Express and Consultative Logistics businesses into Allcargo Logistics.
3. 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.

Allcargo Logistics Limited has undergone significant changes and reported impressive financial results, according to recent developments.

The company completed its scheme of arrangement effective November 15, 2025, demerging its international supply chain business into Allcargo Global Limited while retaining domestic express and consultative logistics operations. This strategic restructuring aims to enhance operational synergies and create long-term value.

In a notable achievement, Allcargo Logistics delivered its highest-ever quarterly revenue and volume in its express business. For Q2FY26, the company reported revenue of Rs 537.00 crores and consolidated EBITDA of Rs 62.00 crores, showcasing strong performance in its core operations.

Prior to these developments, Allcargo Logistics had submitted a monitoring agency report detailing the utilization of funds raised through a Qualified Institutions Placement (QIP), following its merger with Allcargo Gati Limited. The report, prepared by ICRA Limited, provided insights into the company's financial management and adherence to stated objectives.

Key Highlights of the QIP Fund Utilization Report

• Total Funds Raised: The QIP raised Rs 161.12 crore, out of an original issue size of Rs 169.28 crore.
• Funds Utilized: Rs 100.50 crore has been utilized as per the stated objectives.
• Remaining Funds: Rs 60.62 crore remains unutilized.

Fund Utilization Breakdown

The monitoring report indicated that the funds have been allocated as follows:

Merger Context

The QIP fund utilization report gained significance in light of the merger between Allcargo Logistics and Allcargo Gati Limited. As per the company's disclosure, Allcargo Gati Limited ceased to exist as a separate entity following the approval of a Composite Scheme of Arrangement by the National Company Law Tribunal, Mumbai Bench.

Compliance and Transparency

ICRA Limited, serving as the monitoring agency, reported no deviation from the stated objectives of the QIP. This adherence to the declared purposes underscored Allcargo Logistics' commitment to transparent financial management and regulatory compliance.

Future Outlook

With the recent strategic restructuring and strong financial performance, Allcargo Logistics is well-positioned for growth in the integrated logistics sector. The company still has Rs 60.62 crore at its disposal from the QIP, which is expected to be utilized for upgrading operating units, developing proprietary technology, and general corporate purposes.

As Allcargo Logistics continues to navigate its post-restructuring landscape, the prudent use of these funds, coupled with its record-breaking express business performance, will be crucial in realizing its strategic objectives and driving further growth in the competitive logistics industry.