Mahindra Logistics Stages a Turnaround: Q3 Profit and 19% Revenue Surge Signal Growth

MUMBAI — January 27, 2026 — Mahindra Logistics Limited (MLL) has reported a decisive return to profitability in its third-quarter (Q3 FY26) results, ending December 31, 2025. The consolidated performance highlights a significant operational recovery, with the company posting a Net Profit of ₹3.25 crore, successfully reversing a loss of ₹9.03 crore from the same period last year.

This turnaround is underpinned by a robust 19.1% year-on-year increase in revenue, which climbed to ₹1,898.03 crore, driven by strong festive demand and strategic expansion in its core supply chain segments.

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1. Key Financial Highlights: The Recovery in Numbers

Despite the broader market facing headwinds, Mahindra Logistics' "bottom-line" success was achieved even after absorbing a one-time exceptional charge related to India's new labor regulations.

• Revenue from Operations: ₹1,898.03 crore (Up 19.1% YoY)
• Consolidated Net Profit (PAT): ₹3.25 crore (vs. ₹9.03 crore loss in Q3 FY25)
• Exceptional Item: A one-time charge of ₹7.36 crore was recognized due to the implementation of the new Labour Codes, primarily impacting retiral benefits.
• EBITDA Growth: Strong operational efficiency helped offset inflationary pressures in fuel and labor costs.

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2. Segment Performance: Beyond the Core

The 19% revenue surge was not isolated; it reflected growth across the company’s diversified portfolio:

• Supply Chain Management (SCM): Remained the heavy lifter, generating ₹1,791.92 crore (up 18.1% YoY). This was fueled by a record-breaking festive season where the company processed over 4.3 crore shipments through its sortation facilities.
• Enterprise Mobility Services: Witnessed a significant jump to ₹110.65 crore (up from ₹78 crore last year), as corporate travel and office-commute volumes stabilized post-hybrid-work transitions.
• B2B Express & Last-Mile Delivery: These segments saw a combined volume growth of nearly 20%, benefiting from the rapid formalization of the logistics sector.

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3. Strategic Moves and Acquisitions

To solidify its market position, Mahindra Logistics has been aggressively refining its asset-light model:

1. Lords Freight Integration: Effective November 11, 2025, MLL completed the acquisition of the remaining stake in Lords Freight (India), making it a wholly-owned subsidiary to bolster its cross-border forwarding capabilities.
2. MLL Express Investment: The company infused ₹50 crore into its express service subsidiary to scale up technology-led PTL (Part Truck Load) operations.
3. EV Fleet Expansion: As of Q3 FY26, the company is operating one of India's largest electric vehicle (EV) fleets, covering over 47 million green kilometers annually.

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4. Looking Ahead: The Union Budget 2026 Catalyst

As the Indian markets brace for a wave of earnings reports, the timing of MLL’s turnaround is critical. With the Union Budget 2026–27 scheduled for presentation in just a few days, the logistics sector expects significant tailwinds:

• Infrastructure Outlay: Expectations of continued high capital expenditure on Dedicated Freight Corridors (DFCs) and multi-modal parks.
• National Logistics Policy (NLP): Further digital integration via the ULIP (Unified Logistics Interface Platform) is expected to lower the cost-to-serve for organized players like MLL.
• Green Incentives: Potential subsidies for heavy-duty electric trucks and warehouse automation.

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FinScann Take: Investor Confidence Restored

Mahindra Logistics has demonstrated that it can grow its top line while navigating complex regulatory shifts like the new Labour Codes. The successful integration of recent acquisitions and the 19% revenue growth suggest that the company’s "Integrated Solutions" strategy is gaining traction with high-value clients in the Auto, E-commerce, and FMCG sectors.

For investors, MLL now represents a "growth-at-reasonable-price" play in a sector that is the backbone of the "Make in India" ambition.

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Disclaimer

This article is for informational purposes only and does not constitute financial advice. Trading in equities involves high risk. Please consult a SEBI-registered advisor before making investment decisions. FinScann and its authors are not responsible for any financial losses.