Allcargo Logistics completes integration in Q3FY26, lifts margins to ~30% and sees strong express recovery.
Allcargo Logistics Limited has announced its consolidated financial results for the quarter ended December 31, 2025 (Q3FY26), marking the completion of the integration of its domestic supply chain businesses—Express Distribution and Contract Logistics—following approval of the company’s restructuring plan.
The company described Q3FY26 as a transition quarter, focused on improving service quality, strengthening profitability and enhancing platform readiness for future growth. During the quarter, Allcargo completed the integration of its express and consultative logistics businesses and implemented Oracle Fusion Accounting Software, enabling unified operations across customers, warehousing infrastructure, transport assets and technology platforms.
Yield-enhancement initiatives during the quarter helped drive gross margin improvement to around 30%, while the Express Division recorded its highest-ever monthly revenue in December 2025, supported by strong volume recovery and market share gains.
Commenting on the performance, Ketan Kulkarni, Managing Director and CEO, said Q3FY26 marked the successful integration of express and contract logistics into a single domestic platform. He noted that while express logistics saw a sharp rebound in volumes and margin improvement, contract logistics demand remained muted as some e-commerce clients deferred expansion plans, though underlying client relationships continued to remain strong. On a cumulative basis, the domestic business remained profitable.
On the financial front, Allcargo Logistics reported a 7% year-to-date increase in revenue, a 9% rise in EBITDA and a sharp 50% growth in profit before tax (before exceptional items). The Express Distribution business delivered EBITDA growth of 19% year-on-year and 6% quarter-on-quarter, driven by improved service quality, customer retention and new client additions. Contract Logistics recorded revenue growth of 23% year-to-date and 5% year-on-year, with EBITDA rising 16% year-to-date and 2% year-on-year, despite subdued demand during the quarter.
Looking ahead, the company said that with the integration now complete, it is well positioned to deliver steady revenue growth, with EBITDA and PBT expected to grow faster than the topline. The focus will remain on yield-led margin expansion, technology-driven execution, disciplined cost management and unlocking new growth levers, particularly in the Full Truck Load (FTL) and transport segments.
Source: PR
