Allcargo Logistics returned to profitability in the second quarter of FY27, supported by improved operating margins and tighter cost management. The company’s September 2026 results showed that profitability strengthened even though revenue growth remained relatively modest.

Consolidated revenue from operations increased approximately 3.4% year on year to ₹555 crore, compared with ₹537 crore in the corresponding quarter last year. The growth reflected a gradual improvement in the domestic logistics business.

Profit after tax reached approximately ₹19 crore, compared with a loss of around ₹5 crore in Q2 FY26. This turnaround marked an important improvement in the company’s financial performance.

Profit before exceptional items and tax increased approximately 167% to ₹24 crore from ₹9 crore a year earlier. The improvement indicates that stronger underlying profitability contributed to the earnings recovery.

Quarterly gross profit increased approximately 13% year on year, substantially exceeding the growth in revenue. This suggests that improved pricing and cost recovery helped the company retain more income from its operations.

EBITDA increased approximately 24% compared with the previous year. The growth demonstrates the benefit of operating efficiency even without a comparable expansion in overall business volumes.

The company’s consolidated operating margin reached approximately 14.1%, compared with 11.5% in the corresponding quarter last year. This improvement of around 260 basis points was a notable feature of the financial results.

Sequentially, revenue increased approximately 1.6% from ₹546 crore in Q1 FY27. The relatively small increase indicates that business growth remained gradual during the September quarter.

The sequential improvement in operating margin was stronger, rising from approximately 13% in the June quarter. This suggests that pricing discipline and cost management continued to support profitability.

Allcargo Logistics now operates primarily across domestic supply chain services, express distribution and consultative logistics. Its international supply chain business was separated into Allcargo Global under the group’s restructuring arrangement.

This restructuring is important when comparing current results with historical financial performance. Investors should use the restated comparative figures to evaluate the continuing business rather than relying on numbers from the previous corporate structure.

Express Distribution remained an important part of the company’s operations. Shipment volumes stood at approximately 3.11 lakh tonnes during Q2 FY27, compared with 3.12 lakh tonnes in the preceding quarter.

The broadly stable volumes indicate that the division had not yet achieved a meaningful sequential recovery in shipment activity. However, the company continued to focus on protecting pricing and improving service quality.

Management highlighted customer engagement, network efficiency and process improvements as priorities for the Express Distribution business. These measures are intended to support volume growth without sacrificing the pricing improvements achieved in recent quarters.

Consultative Logistics delivered a more encouraging operating performance. Revenue from the business increased by approximately ₹9 crore year on year, supported by higher customer throughput and better warehouse utilisation.

The improvement in warehouse utilisation is particularly relevant because logistics infrastructure carries significant operating costs. Higher throughput can help spread these expenses across a larger volume of business.

For the first half of FY27, consolidated revenue increased approximately 7.1% year on year to ₹1,101 crore. The stronger first half growth rate compared with the September quarter indicates that revenue momentum moderated during Q2.

First half EBITDA increased approximately 31%, while the EBITDA margin reached 13.4%. The improvement demonstrates that profitability gains were not limited to a single quarter.

The company generated approximately ₹33 crore in profit after tax during the first half, compared with a loss in the corresponding period last year. The turnaround reflects progress in restoring profitability across the continuing domestic logistics operations.

Management expects festive season demand to support business activity during Q3 FY27. Automotive, electronics, heavy engineering and ecommerce are among the sectors expected to contribute to shipment demand.

For the second half of FY27, the company is prioritising volume recovery, stronger capacity utilisation, improved service levels and lower operating costs. Maintaining pricing discipline while rebuilding shipment growth will be important for sustaining the improvement in margins.

Allcargo Logistics enters the second half of FY27 with stronger operating profitability and a return to positive earnings, but limited sequential revenue growth. Its future performance will depend on converting better operating efficiency into sustained shipment growth, stronger cash generation and durable profitability.