Allcargo Logistics Q2 FY26 earnings call

Where management's figures differ from the filing

• Revenue (Q2 FY26): said ₹537 cr (post-demerger perimeter, +11% YoY): Express ₹377 cr + Consultative ₹160 cr; filed ₹1,028.00 cr (consolidated, -76.1% YoY). Q2 ended Sept 30, 2025 - pre-demerger effective Nov 1, 2025. Management presented only the new perimeter (Express + Consultative); filed includes the international supply chain demerged to Allcargo Global.
• EBITDA (Q2 FY26): said ₹62 cr (post-demerger perimeter, +27% YoY): Express ₹17 cr + Consultative ₹46 cr; filed ₹104.00 cr (consolidated, -22.8% YoY, margin 10.1%). Same reason as revenue: management presented only the post-demerger perimeter; filed consolidated includes international supply chain EBITDA.

What moved the numbers, as management explained it

• One-off ₹12 cr Q2 Gati intangible amortization + ₹15 cr composite scheme stamp duty added back to get adjusted PBT ₹9 cr profit; both won't recur post-Nov 1, 2025. (one-off)
• Total volume grew 6% YoY to 3.26 lakh MT on festive season demand; +11% QoQ.
• Realization per ton flat YoY at ₹11,564 - no pricing tailwind in the quarter.
• SG&A costs shrank YoY while consolidated revenue grew 11%, driving operating leverage and higher EBITDA growth (+27% YoY to ₹62 cr).

The numbers management led with

• Consolidated volume handled: 3.26 lakh metric tons in Q2 FY26; +6% YoY, +11% QoQ
• Warehouse space under management: 8.4 million square feet
• Post-Gati total share count: 149 crore shares
• Top-10 customer concentration in Consultative Logistics: ~50%+ of revenue

Guidance on this call

What changed since the Wed 13 Aug 2025 call

By business

Balance sheet, capex and funding

• Net cash ₹22 crores at end of Q2 FY26 (vs net debt ₹467 cr at end-Q1 FY26 per previous call).
• Total share count post Gati shareholder allotment: 149 cr shares (63 shares for every 10 held in Gati).
• No specific capex figure disclosed; CFO noted contract logistics requires 'a bit of capex in terms of warehouse' during growth phase.

The industry, as management sees it

Management sees India as one of the fastest-growing economies with GDP growth forecast at ~6.6%, supported by strong domestic demand, sustained infrastructure investment and policy reforms. E-way bill generation hit a record 132 million in Sept 2025 (+21% YoY) and GST collections for October at INR1.95 lakh cr (+4.6% YoY), indicating robust goods movement and demand across key sectors — a tailwind for Express and Consultative Logistics.

Risks management named

• Composite scheme one-time stamp duty and other expenses of INR15 cr in Q2 — non-recurring
• Customer concentration in Consultative Logistics (~50% top-10) materially higher than Express (~20%)
• Last year's General Price Increase (GPI) response was disappointing; company expects a better GPI this year
• Warehouse capex drives apparent margin anomaly in Consultative (pre-Ind AS 8%, post-Ind AS ~29%) during growth phase

Asked for a number, answered without one

• Forward margin levels: Gave growth rates only - EBITDA CAGR 20% to FY28 and 10% CAGR growth on gross margin from 29% H1 - no absolute target margin.
• General price increase (GPI) size: Said last year was first GPI, response not too good, but expects 'much better GPI' this year - no percentage quantified.

Every question, with its answer

1. 1. Demerger / Gati shareholder swap

   Ravi Mehta, One Up

   Question. Couple of questions on the demerger: by when should shareholders expect to get the Allcargo Global shares and the listing? And by when will Gati shareholders actually receive the swap shares?

   Answer, Ravi Jakhar / Deepak Pareek, Director - Strategy & Group CFO / CFO. Ravi Jakhar: We expect to file the IM in the next 1.5 weeks and, subject to exchange approvals, expect the Allcargo Global listing in January. Deepak Pareek: The Gati shareholder share credit will happen this week.

2. 2. Revenue reconciliation — consol vs ECU Global

   Sunder Sarangrajan, Individual Investor

   Question. Reconciliation question: Allcargo consol FY revenue was INR3,817 cr and ECU Global was INR2,956 cr — a gap of INR861 cr. After backing out Express INR357 cr and Consultative INR135 cr, plus INR50 cr fuel/other, ~INR300 cr is unaccounted. Where does this gap come from?

   Answer, Ravi Jakhar, Director - Strategy & Group CFO. The gap is the India part of the international supply chain business — LCL consolidation and FCL operations within India. Going forward, Allcargo Global standalone will include this India international business plus ECU (ex-India); the combined is the Allcargo Global consolidated. The international supply chain India business is not part of Allcargo Logistics.

   Follow-up. So the India part will be in the global or allcargo Global?

   Answer. Terminal business was demerged 2+ years ago. The international supply chain (LCL, FCL) — both India and ex-India — goes into Allcargo Global. Allcargo Logistics holds only Express and Consultative Logistics.

3. 3. Market scenario and GPI/pricing power

   Raj Nigam, SR Investments

   Question. What is the current market scenario and can the company take a price hike given this environment?

   Answer, Ketan Kulkarni, Managing Director & CEO. Macro and micro indicators are positive and the quarter's performance reflects the positioning. With inflation and the service quality Allcargo offers, there is opportunity to increase yield via the annual General Price Increase (GPI). Last year's GPI response was disappointing; this year management expects a much better GPI.

4. 4. Amortization, depreciation, share count, contract logistics margins

   Vatsal Parag Shah, Knightstone Capital Management

   Question. Multi-part question: can you repeat the amortization callout; should we assume the depreciation run rate is ~INR50 cr per quarter; what is the post-Gati total share count; and is the pre-Ind AS margin for the contract logistics business ~4%?

   Answer, Deepak Pareek, Chief Financial Officer. Amortization: Q2 charge of INR12 cr and H1 of INR25 cr on acquired Gati intangibles will not recur post Nov 1 since Gati is now part of Allcargo Logistics. Q2 also includes INR15 cr composite-scheme stamp duty/other expenses (non-recurring). Reported Q2 PBT loss of INR18 cr becomes effective profit of INR9 cr ex-exceptionals. Depreciation run rate yes around INR50 cr per quarter. Post-Gati share count: 149 cr shares. Pre-Ind AS contract logistics margin is ~8% (not 4%); post-Ind AS it is ~29% — anomaly is due to warehouse capex during a growth phase and will taper.

5. 5. Margin guidance and operating leverage

   Ranjay Popli, Banyan Capital

   Question. Guidance on margins — where do management see margins going forward? And can you elaborate on the operating-leverage levers?

   Answer, Deepak Pareek / Ravi Jakhar / Ketan Kulkarni, CFO / Group CFO / MD & CEO. Deepak: Stand by the analyst-meet guidance for FY28/FY30 — revenue grew 10–11% this quarter on price+volume; EBITDA CAGR of 20% from hereon to FY28; gross margin to increase ~10% from H1 base of 29%. Ravi: Operating leverage refers to SG&A staying largely consistent while revenue grows, creating a multiplier on EBITDA — SG&A actually shrank this quarter while revenue expanded. Ketan: Cross-sell between Express and Consultative via single point of contact; integration and improved monitoring will boost sales and manage expenses.

6. 6. Tech developments, cross-sell synergies, customer concentration

   Raj Nigam, SR Investments

   Question. Three questions: what tech developments are underway; any new client additions / cross-sell synergies post the merger; and what is the top-10 customer concentration in each business?

   Answer, Ketan Kulkarni, Managing Director & CEO. Tech: cloud-native stack, mobile-first booking app enhancements, last-mile delivery app upgrade, Control Tower (24/7 truck monitoring), Hub Eye and Gate Scan for hub turnaround; WMS revamp going live in 90 days; Oracle Finance ERP recently launched. Cross-sell accelerators identified in quick commerce/e-commerce (last-mile for furniture MNC), auto and engineering (Air Express for VOR), life sciences (temperature-controlled last mile). Top-10 customer concentration: ~50%+ in Consultative Logistics vs ~20% in Express.

Topic by topic, in the order it was spoken

In their words