As per the letter attached
Awaiting price reaction for this filing.
Allcargo Gati filed its Q1FY26 Investor Presentation detailing weak Q1 results for its Express business (GESCPL). Revenue from operations was flat at ₹357 Cr (-0.3% YoY) but declined 7% QoQ, while volumes slipped 2% YoY to 299K MT. Gross profit fell 10% YoY to ₹88 Cr with margins compressing 269 bps to 24.7%, and EBITDA dropped 26% YoY to ₹14 Cr, though it improved 18% QoQ. The company reported a consolidated PAT of just ₹1 Cr versus a loss of ₹3 Cr a year ago. Management highlighted focus areas including reducing cost-per-kg, revamping turnaround times, network optimization, and yield management through annual price increases and perpetual contracts. The composite scheme merging Express and Consultative Logistics awaits NCLT hearing expected in Q2FY26, which could unlock 4-6x wallet share expansion opportunities.
Soft YoY revenue and margin performance reflects demand headwinds, but sequential improvement in EBITDA and management's clear focus on cost efficiency and CPK reduction suggest a path to margin recovery. Investors should watch the NCLT outcome and execution of cost initiatives for signs of turnaround in upcoming quarters.