Allcargo Logistics has published the transcript for its Q3 FY-26 earnings conference call held on February 6, 2026. Management detailed a transitional quarter focused on quality and profitability, leading to visible improvements in yields and cost control, particularly in the Express business. The company remains optimistic about macroeconomic tailwinds, strong domestic trade indicators, and leveraging technology, including AI and control towers, to drive future growth across its Express and Contract Logistics segments.
Q3 FY-26 Performance and Macro View
Allcargo Logistics management addressed investors regarding the financial performance for the quarter and 9-months ended December 31, 2025. CEO Ketan Kulkarni highlighted that India’s projected 7.3% GDP growth and significant infrastructure CAPEX spending (INR 12.2 lakh crores for FY ’27) provide strong tailwinds for the organized logistics industry. Key indicators like E-waybill generation growing 23.6% in December 2025 reinforced buoyant economic activity.
The 3rd Quarter was characterized as a transition period, emphasizing quality and profitability. Visible improvements were noted in yields and reduced costs. While the growth in Contract Logistics (CL) was muted due to e-commerce client deferrals, the Express business saw improved profitability year-on-year due to yield improvement and cost control.
Consolidated Financial Highlights (Q3 FY-26)
CFO Deepak Pareek shared key financial metrics. The total volume handled in Q3 FY-26 was 313,000 metric tonnes, with realization per tonne reaching INR 11,610 (up 2% YoY). The company maintains a healthy net cash position of INR 88 crores.
- Consolidated Revenue (Q3): Stood at INR 516 crores (versus INR 519 crores last year).
- Consolidated EBITDA (Q3): Stood at INR 61 crores, in line with YoY and QoQ performance.
- 9-Month Revenue Growth: Reached INR 1,544 crores, marking a 7% growth YoY.
- 9-Month EBITDA Growth: Came in at INR 174 crores, representing a 9% growth YoY.
Segment Performance Breakdown
Express Business
The Express business showed strong profitability improvements:
- Q3 Revenue: INR 364 crores.
- Q3 EBITDA: INR 18 crores, reflecting a 19% YoY growth and 6% sequential growth.
- On a 9-month basis, Express revenue was INR 1,081 crores, with EBITDA at INR 44 crores.
Consultative Logistics (CL) Business
This segment manages 8.1 million square feet of warehouse space as of December 2025.
- Q3 Revenue: INR 153 crores (up 5% YoY).
- Q3 EBITDA: INR 46 crores (up 2% YoY).
- 9-Month Revenue Growth: Robust growth of 23% to reach INR 464 crores.
- 9-Month EBITDA Growth: Strong growth of 16% to reach INR 135 crores.
Strategy and Future Outlook
Management emphasized a focus on efficiency-led profitable growth, strengthening digital capabilities (cloud platforms, data analytics, control towers), and making Transportation and Full Truckload a focus area. For Vision 2030, growth is expected to be primarily organic, driven by tech improvements and service quality in Express, and deeper integration for CL clients.
Regarding technology investment, the company plans an outlay of INR 12 crores for the next full financial year, aligning with an OPEX model rather than CAPEX-led expansion. When queried about price hikes, management confirmed its commitment to yield enhancement while balancing volume, targeting profitability over sheer volume at any cost.
The management expressed confidence that Q4 will be better than Q3 across both Express and CL segments, staying firm on its strategic direction.
Source: BSE
