Allcargo Gati Limited has informed the Exchange about Transcript
Awaiting price reaction for this filing.
Allcargo Gati filed the transcript of its Q1 FY26 earnings call held on August 6, 2025. For the Express business, revenue stood at INR357 crores (vs INR358 crores YoY), gross margin improved 170 basis points QoQ to 25%, and EBITDA margin improved 100 bps QoQ to 4%. Management maintained its full-year EBITDA margin guidance of 6.5%-7% for the Express business and reiterated growing 1 percentage point above the market. Employee expenses were cut 10% YoY, and new business additions grew 120% YoY, though volumes dipped marginally as the company exited unprofitable customers. The demerger/merger with Allcargo Supply Chain is progressing, with NCLT hearing in August, order expected by September, and the merged entity likely operational from October 2025.
Margin trajectory is improving QoQ with costs being rationalized, but Express EBITDA at INR14 crores is still below the guided 6.5-7% annual margin run-rate, so investors should watch upcoming quarters for margin expansion. The pending merger with Allcargo Supply Chain is a near-term catalyst that could unlock cross-selling synergies and broaden the product portfolio.