Allcargo Logistics Q4 FY26 earnings call

Where management's figures differ from the filing

• Q4 FY26 EBITDA: said ₹60 cr, +41% YoY; filed ₹72 cr (excl other income), -39.1% YoY. Filed EBITDA excludes other income; management cited +41% YoY at ₹60 cr vs filed's ₹72 cr at -39.1% YoY — basis not reconciled in transcript.

What moved the numbers, as management explained it

• Q4 EBITDA up 41% YoY to ₹60 cr on flat ₹514 cr revenue; driven by employee and other expense rationalization plus Express-CL integration operating efficiencies.
• FY26 gross profit up 2% YoY aiding EBITDA growth; Express remained flat while CL grew 17%, shifting business mix in margin favour.
• Express realization up 3% YoY and 4% QoQ to ₹12,037/MT; helped by metro congestion charge, AER charges on 1,100 pin codes and pin code subdivision from 19,000 to 32,000.
• Consultative Logistics FY26 revenue up 17% YoY to ₹615 cr driven by full-truckload addition and 3PL expansion under asset-light operating lease from April 2025.
• FY26 PAT remained modest at ₹6 cr despite EBITDA growth; PBT pre-exceptional up 96% YoY, indicating one-off gap between PBT and PAT. (one-off)

The numbers management led with

• PBT improvement: PBT pre-exceptional items improved 96% YoY in FY26
• Warehouse expansion target: 0.5 million sq. ft. additional warehouse space planned for FY27, asset-light

Guidance on this call

By business

Balance sheet, capex and funding

• Adopted operating lease strategy for pure-play 3PL warehouses from April 2025, conserving cash on capex outlay.
• Plan to add 0.5 million sq ft additional warehouse space next year, largely on an asset-light approach.
• FY26 PBT pre-exceptional improved 96% YoY; management guides EBITDA and PBT to outpace revenue in coming quarters.

The industry, as management sees it

Management sees a favorable environment for organized logistics players, supported by continued infrastructure policy focus, improving GST collections and e-way bill generation. E-commerce and quick commerce expansion is a structural tailwind, with top 3 players in both verticals already served by Allcargo's CL business.

Risks management named

• Near-term geopolitical uncertainty warrants caution on macroeconomic demand outlook
• Diesel/petrol price hike announced morning of call — addressed via existing pass-through contracts
• PAT remains structurally depressed vs EBITDA due to high depreciation and exceptional items

Not answered directly

• Dividend policy — deferred to Board decision without any timeline or commitment

Asked for a number, answered without one

• Express vs Contract Logistics EBITDA split: Directed to Slide 22 of the presentation; Sanjay Punjabi to take it offline after the call.
• Diesel price hike impact on growth/margin in H1 FY27: Stated fuel is a pass-through built into B2B customer contracts via transparent DPH mechanism; no quantified impact provided.
• Concrete milestones for growth turnaround: Only EBITDA improvement cited as the metric to track; FY26 margin moved from 10% to 11% with progressive commitment to value creation, no specific target given.
• Dividend policy: Stated dividend is a Board and shareholder decision; to be recommended at the right point in time — no specific commitment.

Every question, with its answer

1. 1. Allcargo Global IPO listing timeline

   Adwait Javkar, EquiPoise Capital Management

   Question. What is the expected listing date for Allcargo Global? You had mentioned Q4 FY26 listing in the previous call but no update so far. Are there any issues or challenges causing the delay?

   Answer, Sanjay Punjabi, Investor Relations. All necessary approvals from both exchanges and SEBI have been received day before yesterday. All that remains is to file the revised information memorandum with audited annual financials, and listing can be expected in about a month's time from now.

2. 2. Express gross margin & yield improvement

   Vikram Suryavanshi, PhillipCapital India

   Question. What is the opportunity to increase wallet share in our logistics business? And what are the levers for margin expansion, particularly for the B2B Express side?

   Answer, Ketan Kulkarni, MD & CEO. Market expansion is the key lever. We focus on both revenue market share and volume market share through KAEs (Key Enterprise Accounts), MSMEs and Retail. All new customer onboarding and organic growth across Surface and Air will be margin-positive. Growth will be calibrated — while gaining market share and growing faster than the market, significant weightage is placed on improving profitability.

   Follow-up. Can you detail the gross margin improvement levers — specifically on pricing discipline, customer reorientation of contracts, and operating leverage in the B2B Express segment?

   Answer. Significant work done in the last 6 months on the Express division. GPI activity improved rupee per kilo. Introduced metro congestion charge for urban logistics, next round-0 weight rounding, and AER (Allcargo Extended Reach) charges for ~1,100 difficult pin codes. Also subdivided 19,000 pin codes into 32,000 for granular operational and pricing capabilities. RPKG has improved to a comfortable level. Cost pressures from geopolitical situation are well covered; further hedging planned for Q1 and Q2. Margin expansion plan is on track.

3. 3. Consultative Logistics capex & asset-light strategy

   Vikram Suryavanshi, PhillipCapital India

   Question. On the Consultative Logistics side, what is the capex plan for adding warehouse capacity? Will it remain asset-light, and what does the capex look like for that business?

   Answer, Deepak Pareek, CFO. CL has grown 17% this year on a mix of asset-light and some asset-heavy (transportation vertical with full truckload business). Pure-play 3PL warehouse moved to asset operating lease strategy from April 2025, conserving cash. FY27 plan is to add 0.5 million sq. ft. additional warehouse space, largely asset-light. Focus now shifts to enhancing gross margin realization on the existing business.

4. 4. Warehouse capacity utilization

   Vikram Suryavanshi, PhillipCapital India

   Question. Is there white space or under-utilization of existing capacity within CL where further growth is possible, or is capacity already running at full utilization?

   Answer, Ketan Kulkarni, MD & CEO. White space in this industry is a function of running stock requirements. Allcargo is well below industry norms and tracks this metric closely; management is comfortable with current capacity utilization levels.

5. 5. Fuel price hike impact

   Adwait Javkar, EquiPoise Capital Management

   Question. Is any financial information on Allcargo Global available now for the quarter ended March 2026?

   Answer, Sanjay Punjabi, Investor Relations. Information memorandum will be filed in the next 2 weeks and will carry all financial information. Once the IM is filed, all financials will be available to all investors.

   Follow-up. The recent petrol and diesel price increase announced today — how will this impact Allcargo Logistics? Should we expect slower growth or subdued margins in H1 FY27?

   Answer. Fuel cost is already built into B2B customer contracts as a pass-through element. No challenge anticipated. Allcargo has a transparent diesel price hike pass-through mechanism published on its website, with monthly DPH percentage announcements — well covered on the morning's fuel price announcement.

6. 6. Turnaround milestone metrics

   Anil Raju, Individual Investor

   Question. EBITDA is improving to INR 233 crores but PAT remains at INR 6 crores. When can investors expect meaningful bottom-line improvement?

   Answer, Deepak Pareek, CFO. PBT pre-exceptional items improved 96% this year. The buildup of growth is already in place and will be visible in the next quarter's entire contribution. EBITDA trajectory improvement from 10% to 11% this year demonstrates progressive value creation.

   Follow-up. What concrete milestones should investors track over the next 4-6 quarters to know if the turnaround and integration strategy are succeeding?

   Answer. The key metric for investors to track is EBITDA improvement. EBITDA has moved from 10% to 11% this year and the company is committed to progressive enhancement of shareholder value.

7. 7. Dividend policy

   Anil Raju, Individual Investor

   Question. Any comments on dividends?

   Answer, Deepak Pareek, CFO. Dividend is a function of Board and shareholder decision. At the right point of time, the Board will recommend to shareholders.

   Not answered directly.

8. 8. Segment-level IndAS EBITDA split

   Parag Vatsal, Knightstone Capital Management

   Question. Can you provide the split between Express and Contract Logistics post IndAS EBITDA?

   Answer, Deepak Pareek, CFO. The split is on Slide 22 of the earnings presentation. Sanjay will follow up with you offline to address this query.

9. 9. Q1 FY27 revenue and margin outlook

   Chinmay Parab, Individual Investor

   Question. EBITDA grew 16% YoY and margins improved to 11% despite largely flat quarterly revenue. What drove this sharp profitability and how sustainable are these margins?

   Answer, Deepak Pareek, CFO. Gross profit increased 2% YoY driven by operating efficiency from Express-CL integration. Employee expense and other expenses saw significant rationalization. CL grew exceptionally (17%) while Express remained flat; combined EBITDA value creation of 16% YoY reflects both levers. Combination of cost efficiency and integration benefits underpins the margin improvement.

   Follow-up. Given flat Q4 revenue, do you see these margins being maintained? What trend should we expect?

   Answer. The favorable trend continues. From March onwards, pent-up volume is visible (March and April tracking well). Price actions taken (yield improvement) will give a revenue bump. Mix of volume recovery and price improvement will be visible in Q1 FY27. CEO confirmed: growth is the only elixir and margins will only improve going ahead.

10. 10. Express volume growth strategy

    Chinmay Parab, Individual Investor

    Question. Express volumes remained largely flat during FY26 with surface express witnessing moderation. What were the key demand challenges and what does management expect for volume acceleration?

    Answer, Ketan Kulkarni, MD & CEO. Sequentially, volumes are up ~2%. Revenue growth outpacing tonnage growth reflects the deliberate focus on bringing quality revenue and profitable customers. Several unprofitable customers were weeded out — this calibration was intentional. As Q1 begins, all customers in the portfolio are margin-accretive. Surface will be the primary tonnage growth driver; key sectors are auto, engineering and pharma.

11. 11. CL growth drivers and FY27 outlook

    Chinmay Parab, Individual Investor

    Question. CL revenue grew 17% YoY in FY26. Which sectors and service offerings are driving this? Does management expect similar growth in FY27?

    Answer, Ketan Kulkarni, MD & CEO. Momentum on the Express side is driven by surface business (the primary growth driver) and continued focus on Air. Sectors driving Express growth are auto, engineering and pharma, along with diversified industries. For FY27, growth is expected to be better than the prior year on the Express side.

12. 12. E-commerce/quick commerce contribution

    Chinmay Parab, Individual Investor

    Question. How are e-commerce and quick commerce initiatives contributing to customer acquisition, wallet share expansion and market share gains?

    Answer, Ketan Kulkarni, MD & CEO. E-commerce and quick commerce fulfilment operations are entirely on the Consultative Logistics side. Allcargo runs sort centers, fulfilment centers and cross-dock centers for the top 3 e-commerce players and top 3 quick commerce companies in India. On the Express side, the company does not do any B2C deliveries for quick commerce or e-commerce.

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