Allcargo Logistics Limited , India's largest integrated logistics services provider, has reported a consolidated net loss of 40 million rupees in the second quarter, compared to a profit of 170 million rupees in the same quarter last year. Despite the profitability challenges, the company's revenue increased to 5.4 billion rupees from 4.8 billion rupees year-over-year, demonstrating growth in its operations.

Financial Performance

The company's financial results for Q2 show a mixed picture:

The increase in revenue indicates that Allcargo Logistics has been able to grow its business operations and potentially expand its market share. However, the swing to a net loss suggests that the company faced significant challenges in managing costs or maintaining profitability during the quarter.

Factors Affecting Performance

While specific reasons for the profitability decline were not provided in the available data, several factors could potentially contribute to such a scenario in the logistics industry:

• Increased operational costs
• Market competition
• Global economic conditions
• Changes in fuel prices
• Investments in growth initiatives

Corporate Developments

In addition to the financial results, Allcargo Logistics has recently undergone significant corporate changes. As per the company's latest LODR (Listing Obligations and Disclosure Requirements) filing, a Composite Scheme of Arrangement and Amalgamation has been implemented. Key points from this development include:

• Allcargo Gati Limited (Transferor Company) has been amalgamated with Allcargo Logistics Limited (Transferee Company) effective November 1, 2025.
• The company has appointed Mr. Ketan Nishikant Kulkarni as the new Managing Director & CEO for a period of five years.
• Changes in key management positions include the appointment of Mr. Deepak Jagdish Pareek as Chief Financial Officer and Mr. Shekhar R. Singh as Company Secretary & Compliance Officer.

These corporate changes may be part of Allcargo's strategy to streamline operations and improve overall efficiency in the long term.

Looking Ahead

Despite the current quarter's loss, Allcargo Logistics' revenue growth suggests that the company continues to expand its business. The recent corporate restructuring and management changes may be aimed at addressing profitability challenges and positioning the company for future growth.

Investors and stakeholders will likely be watching closely to see how these changes impact the company's performance in the coming quarters, and whether Allcargo Logistics can return to profitability while maintaining its revenue growth trajectory.

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.