Allcargo Logistics Limited has submitted to the Exchange, the financial results for the period ended March 31, 2026.
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Allcargo Logistics Limited reported standalone revenue from operations of Rs 2,058 crore for FY26, up ~5% from Rs 1,961 crore (restated) in FY25. However, profit from continuing operations after tax dropped sharply to Rs 3 crore from Rs 74 crore (restated), a decline of over 95%, primarily due to a significant reduction in exceptional items (Rs 3 crore vs Rs 27 crore including gain on HORCL stake sale). The company posted a loss before tax of Rs 1 crore on continuing operations versus a profit of Rs 21 crore in the prior year. The results have been restated due to a composite scheme of arrangement involving the demerger of the International Supply Chain business and mergers of subsidiaries Allcargo Gati Limited and others, with the appointed date of October 1, 2023. The auditors issued an unmodified opinion with two emphasis of matter points: (1) the demerger accounting treatment overriding Ind AS requirements, and (2) the Income Tax search operations conducted in February 2025 and subsequent notices, though the assessment for an erstwhile subsidiary concluded with nil demand. Cash flows from operations remained healthy at Rs 310 crore.
The sharp decline in profitability despite modest revenue growth is concerning. The restatement of prior year figures and the composite scheme restructuring complicate YoY comparisons. The IT search operations and the Ind AS overriding accounting treatment for the demerger represent ongoing risks. Shareholders should monitor the impact of the restructuring on future earnings and the resolution of the tax matter.