MLL reports reduced FY25 loss to ₹36cr, Q4 loss down; revenue & EBITDA up. Hemant Sikka appointed CEO; share price jumps 5.38% on positive results & leadership change.
Mahindra Logistics (MLL) saw its share price surge by 5.38% to ₹324.15 on April 22, 2025, following the release of its audited consolidated financial results for the fourth quarter and the full financial year ending March 31, 2025. The positive investor reaction was further fuelled by the announcement of Hemant Sikka as the new Managing Director and CEO-designate. The share is currently trading at ₹323.50.
The company demonstrated improved financial performance in the fourth quarter of FY25, with revenue increasing by 8.2% to ₹1,570 crores compared to ₹1,451 crores in Q4 FY24. EBITDA also saw a significant jump of 37.3%, reaching ₹77.7 crores from ₹56.6 crores in the same period last year. Notably, the net loss for the quarter significantly reduced to ₹6.7 crores from a loss of ₹12.9 crores in Q4 FY24. This revenue growth was primarily driven by strong performances in its 3PL contract logistics and express services.
For the entire financial year FY25, Mahindra Logistics reported a robust 11% increase in revenue, reaching ₹6,105 crores compared to ₹5,506 crores in FY24. This growth was attributed to strong performances across its 3PL, Last Mile Delivery (LMD), and Cross Border services. While the company reported a net loss of ₹36 crores for FY25, this marks a considerable reduction from the ₹101 crores loss incurred in FY24, indicating a positive trend in profitability.
Adding to the positive momentum, Mahindra Logistics announced the appointment of Hemant Sikka as its new MD & CEO-designate, effective April 22. He will officially assume the role on May 5, 2025, succeeding Ram Swaminathan, who is stepping down after a successful tenure during which MLL doubled its revenue and expanded its presence across key logistics segments. Sikka, who previously served as President of Mahindra’s Farm Equipment Sector and is credited with significant market share and profitability growth, is expected to steer MLL into its next phase of strategic and operational expansion.
Several other factors contributed to the improved financial performance and positive investor sentiment. The Express business significantly reduced its losses by 21% year-on-year, accompanied by improved EBITDA margins due to effective cost optimisation. The freight forwarding business also experienced substantial revenue growth of 21% YoY, supported by favourable freight rates, strong demand in the pharmaceutical sector, and the acquisition of new clients.
Mahindra Logistics also continued its expansion and infrastructure development, with its warehousing and integrated solutions business growing by 15% YoY, reaching 20.8 million square feet of managed warehouse space. Ongoing expansions in key locations like Pune, Kolkata, Phaltan, and Agartala are progressing as planned, with a continued focus on expanding capacity in the eastern and northeastern regions of India.
Furthermore, MLL strategically forged new partnerships and ventures, including a 50:50 joint venture with Seino Holdings to offer integrated logistics solutions to Japanese automotive and auto-ancillary customers. A partnership with Asian Paints for Pro-trucking integrated transportation solutions was also established during the fiscal year.
The combination of improved financial results, particularly the reduced losses and revenue growth, coupled with the appointment of a seasoned leader like Hemant Sikka, has instilled strong confidence in Mahindra Logistics’ future growth trajectory. The company’s strategic focus on expanding its service portfolio, enhancing operational efficiency, and forming strategic collaborations positions it favourably to capitalise on the expanding logistics market in India and deliver enhanced value to its shareholders.
Source: groww
