Allcargo Logistics Limited has announced that its Board of Directors has approved the utilisation of unutilised proceeds from a Qualified Institutions Placement (QIP) originally raised by the now-amalgamated Allcargo Gati Limited. The decision was taken at the Board meeting held on February 5, 2026.

QIP Proceeds Details

The QIP was initially approved by members of Allcargo Gati Limited through a Special Resolution passed by Postal Ballot dated February 6, 2024. Following the amalgamation of Allcargo Gati Limited with Allcargo Logistics Limited, the unutilised funds have been transferred to the merged entity.

Board Approval and Compliance

The Board has approved the deployment of the Rs 64.71 crore towards general corporate purposes of the Company. This utilisation is subject to review and observations from ICRA Limited, which has been appointed as the monitoring agency for overseeing the utilisation of QIP proceeds.

Regulatory Communication

The company has formally communicated this decision to both BSE Limited and National Stock Exchange of India Limited as part of its regulatory compliance under Regulation 30. The intimation was signed by Company Secretary Shekhar R Singh and submitted to the stock exchanges for information and record purposes.

This development represents the company's strategic decision to deploy available capital resources for operational and growth requirements while maintaining compliance with regulatory monitoring requirements.

Allcargo Logistics Limited has received a credit rating assignment from CARE Ratings Limited for its bank facilities worth ₹255.00 crore. The rating agency assigned a CARE A-; Stable / CARE A2 rating to the company's long-term and short-term bank facilities on March 5, 2026.

Rating Details and Facility Breakdown

The rating covers the company's comprehensive banking arrangements across multiple lenders:

The facilities are distributed among five major banks:

Key Rating Strengths

CARE Ratings highlighted several factors supporting the rating assignment. The company maintains a strong position in integrated logistics with comprehensive pan-India presence, servicing close to 100% of serviceable PIN codes across the country. Allcargo operates an extensive physical infrastructure comprising over 700 facilities, 90+ hubs, and 80+ logistics parks, supplemented by 8 air logistics centres.

The rating agency noted significant synergies from the recent consolidation of domestic logistics operations, encompassing express distribution and contract logistics under a single platform. This integration is expected to enhance end-to-end fulfilment solutions and support revenue growth through improved service breadth and cross-selling opportunities, particularly in automotive, engineering, and consumer fast-retail segments.

Financial Performance and Operational Metrics

Post demerger of the international supply chain business, Allcargo reported total operating income of ₹1,961 crore in FY25. The growth momentum continued in 9MFY26, with revenue rising by 6.63% to ₹1,544 crore from ₹1,448 crore in 9MFY25.

Rating Challenges and Risk Factors

Despite the positive rating assignment, CARE Ratings identified several areas of concern. The revenue profile remains concentrated, with approximately 64% of segment revenue in FY25 derived from the Surface Express business, followed by about 21% from Contract Logistics. Air Express, despite being relatively higher margin, contributes only around 3% to total revenue.

The express and part-truckload business faces intense competition from both unorganised players and well-funded new entrants, exerting persistent pricing pressure and compressing renewal margins. The company also exhibits moderate debt coverage indicators, with total debt/GCA of 13.82x for FY25, primarily due to sizeable lease liability of approximately ₹572 crore out of total debt of ₹782 crore.

Liquidity Position and Outlook

CARE Ratings assessed the company's liquidity profile as adequate. As of December 31, 2025, cash and liquid investments stood at ₹160 crore against outstanding term debt of ₹30 crore, providing a surplus cushion of approximately ₹130 crore. Working capital limit utilisation averaged 18% for the 12 months ended January 31, 2026, indicating significant headroom within sanctioned facilities of ₹260 crore.

The rating agency maintains a stable outlook, expecting Allcargo to benefit from the recent consolidation of express cargo and contract logistics businesses, resulting in operational and financial synergies that should support improvement in profitability and strengthen competitive position in the integrated logistics segment.

Source: None/Company/INE418H01029/35214e01-0b8d-4225-933c-cad031aaada4.pdf