Mahindra Logistics shares jumped 4.23% to ₹403.75 following the company's Q1 earnings announcement, demonstrating continued investor confidence in the logistics provider's turnaround story. According to Business Standard, the stock has shown strong momentum with 27.7% year-to-date gains compared to the Sensex's 7% gain during the same period, significantly outperforming the benchmark index. The company's total market capitalisation stands at ₹3,936.16 crore, reflecting the market's positive response to the quarterly results. As of July 20, 2026, the stock has gained 4% in the past week and 12% over the month, with the latest surge building on the earlier 8% jump to ₹420 that was recorded following the earnings announcement. Prabhudas Lilladher has recommended a buy rating on the stock with a target price of ₹507, citing better-than-expected top-line performance with an 8% beat led by new client wins in contract logistics segment and healthy traction in B2B express business. The brokerage expects revenue CAGR of 15% over the next 2 years with EBITDA margin of 6.1%/6.5% in FY27E/FY28E.
The company reported a consolidated net profit of ₹25.39 crore for the quarter ended June 2026, marking a complete turnaround from the net loss of ₹10.80 crore recorded in Q1FY26. As reported by Business Standard, profit increased 25.76% quarter-on-quarter from ₹20.19 crore in the March quarter of FY26, demonstrating sustained momentum in the company's recovery. Revenue from operations increased 23.29% year-on-year and 11.83% quarter-on-quarter to ₹2,002.88 crore in the June 2026 quarter, compared to ₹1,624.59 crore in the corresponding quarter of the previous financial year. Profit before tax stood at ₹39.06 crore compared with a pre-tax loss of ₹5.82 crore in Q1 FY26, with PBT increasing 22.25% QoQ from ₹31.95 crore in Q4 FY26. EBITDA increased 51% year-on-year and 3% quarter-on-quarter to ₹115 crore, with the company's EBITDA margin expanding to 5.76% from 4.69% a year ago, reflecting improved operating leverage and better customer-level profitability. However, EBITDA margin missed estimates by 70 basis points due to startup costs linked to new sites, fuel inflation, and manpower issues, though these headwinds are expected to be transitory.
The Contract Logistics business remained the key growth driver, with revenue increasing 26% year-on-year while EBITDA rose 31%, supported by operating efficiencies, disciplined cost management, and sustained improvement in customer profitability. According to Business Standard, the core supply chain management operations, which include warehousing, distribution and freight movements, delivered exceptional growth with 22.5% revenue increase to ₹1,892 crore. The Supply Chain Management segment reported revenue of ₹1,891.92 crore for the quarter, while the Express business continued its turnaround, recording 58% year-on-year revenue growth and 10% sequential growth, supported by higher shipment volumes and improved pricing, with gross margin and EBITDA improving for the fourth consecutive quarter. The segment also posted its fourth consecutive quarter of improvement in gross margins and EBITDA.
The Enterprise Mobility division delivered exceptional performance with 41% revenue growth, meaningfully contributing to overall growth this quarter. According to Business Standard, this segment, which provides enterprise mobility solutions through a platform called Alyte, demonstrated strong momentum and was spun off from the broader Mahindra Group. The Enterprise Mobility Services segment contributed ₹115.45 crore to the revenue for the quarter. The Mobility business expanded 38% year-on-year, aided by new customer additions in the B2B segment, with EBITDA growing 8% over the same period. The Last Mile Delivery segment recorded an improvement in its EBITDA to ₹2.6 crore, compared to a loss of ₹0.5 crore in Q1 FY26, though the business degrew 16% YoY due to portfolio recalibration. The company's warehouse space under management increased to 21.9 million square feet, up by 1.52 million square feet from the previous quarter following the addition of new customer sites.
The company's warehouse space under management increased to 21.9 million square feet, up by 1.52 million square feet from the previous quarter following the addition of new customer sites. As reported by Business Standard, Managing Director and CEO Hemant Sikka commented that the June quarter reflected the company's transition from a transformation phase to a growth phase, with strong revenue growth, a return to profitability and improving business fundamentals. Sikka noted that momentum was driven by continued strength in contract logistics, significant progress in the express business turnaround and sustained operational improvements across the network. He emphasized that the foundations built over the last year are now translating into stronger business outcomes, with the company remaining focused on profitable growth, technology-led solutions, and its vision of becoming India's #1 logistics services provider through technology-led solutions. Basic earnings per share (EPS) for the consolidated results improved to ₹2.56 for the quarter ended 30 June 2026, compared to a basic loss per share of ₹1.44 in the year-ago period, with total consolidated expenses for the quarter at ₹1,973.60 crore. Prabhudas Lilladher expects margin recovery by 2HFY27E once new sites mature and full benefit of fuel pass through clause materializes, with the brokerage maintaining its target multiple at 14x FY28E pre-IND AS EBITDA.
