Image Source : India Shipping News
Allcargo Gati Ltd, a leading express logistics and supply chain solutions provider, has reported its consolidated financial results for the June 2025 quarter, reflecting a steady performance and signs of operational recovery. The company posted revenue from operations of ₹3.57 billion and a consolidated net profit of ₹37.3 million, supported by improved service capabilities and cost efficiencies.
Key Highlights from Q1 FY26 (April–June 2025):
- Consolidated revenue from operations: ₹3.57 billion
- Consolidated net profit: ₹37.3 million
- EBITDA margin: 4.8 percent
- Total volume handled: 99,000 tonnes in January 2025
- Market capitalization: ₹958.99 crore
- Share price (as of August 5): ₹65.21
Financial Performance: Gradual Recovery in Profitability
Allcargo Gati’s revenue for the quarter stood at ₹3.57 billion, reflecting a modest year-on-year increase. The net profit of ₹37.3 million marks a significant improvement from the previous quarter, where the company had reported a sharp decline in earnings. The EBITDA margin improved to 4.8 percent, up from 1.6 percent a year ago, indicating better cost control and operational leverage.
- Revenue growth YoY: 3.8 percent
- Net profit growth QoQ: 273 percent
- Operating profit: ₹171 million
- Interest expense: ₹42 million
- Depreciation: ₹89 million
The company attributed the margin expansion to modernization of business functions and optimization of its multi-modal network.
Operational Efficiency and Strategic Focus
Allcargo Gati has been actively restructuring its operations to meet evolving market demands. The company’s integrated IT-backed logistics platform now covers 99 percent of India’s districts, enabling end-to-end express distribution across surface and air modes.
- Surface and air express volume: 99,000 tonnes in January 2025
- Network reach: 735 districts
- Fleet size: Over 5,000 vehicles
- Technology upgrades: AI-based route planning and real-time tracking
The strategic collaboration with parent company Allcargo Logistics has allowed Gati to leverage global capabilities across 180 countries, enhancing its service portfolio and customer reach.
Market Sentiment and Shareholder Snapshot
Following the Q1 results, Allcargo Gati’s stock saw a 4.7 percent intraday gain, reaching ₹65.92 before settling at ₹65.21. The company’s 52-week high stands at ₹125.40, while the low is ₹62.33, reflecting volatility amid restructuring efforts.
- Promoter holding: 70.2 percent
- FII holding: 5.6 percent
- Mutual fund holding: 3.4 percent
- Retail holding: 20.8 percent
Investor sentiment remains cautiously optimistic, with analysts watching for sustained profitability and volume growth in the coming quarters.
Leadership Commentary and Strategic Outlook
Managing Director and CEO Ketan Kulkarni emphasized the company’s future-ready approach, stating that modernization efforts have significantly enhanced service capabilities. The company plans to expand its warehousing footprint, invest in automation, and deepen its presence in Tier 2 and Tier 3 cities.
- Focus areas: B2B express, e-commerce logistics, and pharma cold chain
- Capex for FY26: ₹220 million
- Risk factors: Fuel price volatility, regulatory changes, and competitive pricing pressure
Allcargo Gati is also exploring strategic partnerships to strengthen its last-mile delivery and reverse logistics capabilities.
Conclusion: A Quarter of Quiet Momentum and Strategic Realignment
Allcargo Gati’s June quarter results reflect a company regaining its footing through operational discipline and strategic clarity. With profitability returning and network efficiencies improving, the logistics player is poised to capitalize on India’s growing demand for express distribution and supply chain solutions.
Source: Business Standard
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