Allcargo logistics has announced a strategic expansion of its logistics network infrastructure to capitalize on the fast-growing e-commerce and quick-commerce segments. The announcement, made on February 17, 2026, follows the approval of the company's organizational restructuring plan that houses its domestic supply chain business, including express distribution and consultative logistics.

Network Expansion and Capacity

The company has significantly strengthened its operational capabilities across multiple service areas including sorting, fulfillment, consolidation, cross-docking, value-added services, and secondary transportation. Current operational metrics demonstrate substantial scale:

Infrastructure and Technology Integration

Allcargo Logistics has implemented technology-led solutions including Warehouse Management Systems (WMS) to improve inventory visibility and enable better coordination across facilities. The company focuses on network planning and route optimization initiatives to enhance vehicle utilization and infrastructure efficiency, addressing the speed and reliability demands of e-commerce and quick-commerce operations.

Ketan Kulkarni, Managing Director & Chief Executive Officer of Allcargo Logistics, commented: "As consumption patterns evolve and e-commerce scales beyond metros, logistics must function as a structured and reliable backbone. Our focus remains on building integrated networks, technology-led logistics, and disciplined mid-mile execution that enable consistent service delivery across sectors and geographies, while maintaining strong standards of safety and compliance throughout."

Strategic Partnerships and Service Coverage

The company's diversified service capabilities are demonstrated through key partnerships:

• Multinational Furniture Retailer: Handles approximately 95% of logistics operations across Bengaluru, Hyderabad, Pune, Mumbai and Gujarat for a European-founded furniture and household goods company
• Quick-Commerce Segment: B2C engagement with an Indian supermarket and hypermarket chain, providing customized services, network designing, and route optimization

Enhanced Network Reach

Allcargo Logistics has substantially expanded its nationwide coverage through the Allcargo Extended Reach (AER) network:

The expansion enables enhanced connectivity, speed, reliability, and operational efficiency across India's diverse geographic markets. The company's network now covers 100% of India's districts, providing comprehensive reach for MSMEs, retailers, and enterprises.

Business Structure and Services

Following the composite Scheme of Arrangement under NCLT order, Allcargo Logistics Limited has merged its domestic supply chain business while demerging its International Supply Chain business as Allcargo Global. The company's key business verticals include express distribution, air freight, e-commerce logistics, and first and last mile delivery, along with specialized B2C services such as Laabh, Bike Express, and Student Express.

Allcargo Logistics Limited conducted its Q3FY26 earnings conference call on February 6, 2026, where management provided detailed insights into the company's financial performance, business integration achievements, and strategic roadmap. The call was led by Managing Director and CEO Ketan Kulkarni, CFO Deepak Pareek, and Investor Relations representative Sanjay Punjabi.

Q3FY26 Financial Performance and Operational Metrics

The company reported consolidated revenue of ₹516 crore for Q3FY26 compared to ₹519 crore in the same period last year. EBITDA for the quarter stood at ₹61 crore, maintaining stability on both year-on-year and quarter-on-quarter basis. The company handled 313,000 metric tonnes during the quarter with realization per tonne at ₹11,610, representing a 2% year-on-year increase.

Express Business Shows Strong Profitability Improvement

The Express Distribution segment demonstrated robust performance with revenue of ₹364 crore for Q3FY26. EBITDA from this business reached ₹18 crore, marking a significant 19% year-on-year growth and 6% sequential improvement. Management attributed this growth to prudent decisions focused on service quality improvement, profitability strengthening, and effective cost management.

On a nine-month basis, Express business revenue reached ₹1,081 crore versus ₹1,073 crore in the same period last year, with EBITDA at ₹44 crore, maintaining parity with the previous year.

Contract Logistics Maintains Growth Momentum

The Consultative Logistics business managed 8.1 million square feet of warehouse space as of December 2025. Q3FY26 revenue from this segment stood at ₹153 crore, up 5% year-on-year, while EBITDA reached ₹46 crore, showing 2% year-on-year growth.

Strategic Integration and Technology Focus

CEO Ketan Kulkarni emphasized the successful completion of business integration, marking Q3FY26 as a transition quarter that transformed Allcargo Logistics into a unified domestic platform. The company implemented Oracle Fusion Accounting Software and focused on technology-led execution with disciplined cost management.

Management highlighted significant technology investments including GenAI enablers, integrated control towers, and enhanced digital capabilities. The company allocated ₹12 crore for technology initiatives in the upcoming financial year, focusing on service level improvements and enhanced customer experience.

Management Changes and Leadership Transition

CFO Deepak Pareek clarified that management changes in November 2025 were part of the mandatory transition following the scheme of merger effective October 1, 2025. The Allcargo Gati management team now manages the combined entity under Allcargo Logistics, with priorities remaining focused on service quality, business enhancement, and shareholder value creation.

Vision 2030 and Growth Strategy

The company outlined its Vision 2030 targeting 20% EBITDA CAGR from FY25 base through organic growth initiatives. Management expects EBITDA and PBT to grow faster than revenue in coming quarters, driven by improved service quality, technology implementation, and focus on profitable growth across both Express and Contract Logistics segments.