Allcargo logistics has announced a key leadership change with the resignation of its National Head – Sales and Marketing. The company formally notified stock exchanges about this senior management personnel departure on January 29, 2026.

Senior Management Departure Details

Mayank Dwivedi, who served as National Head – Sales and Marketing, submitted his resignation citing personal reasons. The resignation became effective from the close of business hours on Thursday, January 29, 2026.

Resignation Process and Approval

In his resignation email, Dwivedi explained that the decision followed careful consideration and mutual discussions with the organization over several weeks. He emphasized that the decision reflected his personal alignment needs rather than any issues with the company or its people.

Key aspects of the resignation process included:

• Dwivedi requested immediate relief from duties despite a standard two-month notice period
• Managing Director & CEO Ketan Kulkarni approved the resignation and waived the notice period
• The executive committed to ensuring a smooth and professional transition
• Company Secretary Shekhar R Singh handled the regulatory compliance notifications

Regulatory Compliance

Allcargo Logistics fulfilled its disclosure obligations under Regulation 30 of the SEBI Listing Regulations by notifying both BSE and NSE about the senior management change. The company provided all requisite details as prescribed under the Securities and Exchange Board of India Master Circular dated November 11, 2024.

Executive's Statement

Dwivedi expressed gratitude for the opportunity and trust placed in him during his tenure. He described his decision as "an honest acknowledgement of my own alignment" while maintaining respect for the organization and its people. The departing executive emphasized his commitment to maintaining professionalism throughout the transition period.

CRISIL Ratings Limited has announced a significant downgrade of Allcargo Logistics Limited's credit ratings, moving the company's long-term rating to 'CRISIL A/Negative' from the previous 'CRISIL AA-' rating. The rating agency has simultaneously removed the company from Rating Watch with Negative Implications while assigning a negative outlook to the long-term rating.

Rating Action Details

The comprehensive rating action affects multiple facilities totaling ₹1,075.00 crore. CRISIL has withdrawn ratings on ₹508.00 crore bank facilities that have been transferred to Allcargo Global Limited (AGL) following the demerger of the International Supply Chain (ISC) business from Allcargo Logistics.

Additionally, ratings on ₹507.00 crore of term loans and ₹60.00 crore of proposed term loans have been withdrawn following complete repayment at the company's request.

Business Performance Analysis

The ISC business, now housed under AGL post-demerger effective November 12, 2025, demonstrated mixed performance trends. In FY25, the business generated revenues of ₹14,077.00 crore, representing growth from ₹11,259.00 crore in FY24, though still below the ₹16,330.00 crore achieved in FY23.

The first half of FY26 witnessed further challenges with slight year-on-year revenue degrowth attributed to impeded volume growth and lower realizations amid industry volatility driven by geopolitical landscapes and intense competition.

Financial Risk Profile

CRISIL's assessment reveals an average financial risk profile with gross debt of ₹1,010.00 crore as of September 2025, primarily due to expanded working capital requirements. Despite higher debt levels, the gearing ratio is expected to remain comfortable at 0.50-0.60 times over the medium term, supported by a healthy net worth position.

Key Rating Drivers

The rating action reflects several positive and negative factors. Strengths include Allcargo's established position as India's largest and a leading global operator in the ISC container consolidation business, holding approximately 15.00% market share globally. The company connects more than 2,400 direct trade lanes and benefits from its association with the diversified Allcargo Group.

However, these strengths are offset by moderated operating efficiency driven by industry dynamics and one-off expenses. The pre-Ind AS EBITDA margins have maintained in the range of 1.70-1.90% in recent fiscals, down from previously higher margins exceeding 3.00%. In H1FY26, operating performance was further affected by higher operational expenses and one-off charges related to employee severance and debtor write-offs, resulting in negligible pre-Ind AS EBITDA.

Market Position and Outlook

Despite challenges, Allcargo maintains its position as part of an integrated logistics player with presence across diversified segments. The ISC business contributes approximately 88.00% of the group's logistics business revenue, with express logistics and contract logistics contributing 9.00% and 3.00% respectively.

The negative outlook reflects CRISIL's expectation of continued subdued operating performance during FY26, with flattish revenues and weak profitability levels. The rating agency expects moderate industry conditions to persist over the medium term given overall muted demand scenario, especially from key markets in Europe, before meaningful improvement begins.

Liquidity Assessment

CRISIL has assessed the company's liquidity as adequate, supported by its asset-light business model and substantial cash reserves of ₹431.00 crore as of September 30, 2025. The average utilization of fund-based limits at standalone level was approximately 61.00% during the six months through September 2025. With limited capital expenditure requirements, the available liquidity will primarily be utilized to meet debt obligations of approximately ₹160.00 crore in the second half of FY26.