Prabhudas Lilladher has issued a buy rating on Mahindra Logistics with a target price of ₹504 in its research report dated June 17, 2026. According to the brokerage's analysis, the stock currently trades at 12x/9x their FY27E/FY28E pre-IND AS EBITDA estimates, which they believe offers a good entry point from a long-term perspective. The target price is based on 14x FY28E pre-IND AS EBITDA with no change in the target multiple.
The company reported consolidated net sales of ₹1,791.41 crore for March 2026, representing a 14.14% year-on-year growth. Mahindra Logistics also achieved standalone net sales of ₹1,413.95 crore, up 9.34% Y-o-Y during the same period. These strong financial results demonstrate the company's continued growth trajectory and operational efficiency improvements.
The brokerage met with MAHLOG IN management to understand the turnaround strategy for their B2B express business. Since the change of guard at the top level, the company has implemented several optimization measures including optimizing linehaul costs, improving lane utilization levels, expanding network coverage, bolstering feet-on-street presence, and enhancing service levels. These strategic initiatives have resulted in tangible improvement in profitability profile for the business segment.
Prabhudas Lilladher expects revenue/EBITDA CAGR of 13%/25% over FY26-FY28E period amid ongoing business transformation. The brokerage highlighted that the B2B express business is on the verge of EBITDA break-even, having recorded a loss of ₹25 million in Q4FY26. Additionally, they believe the problem of unabsorbed white space is likely to get resolved by September 2026.
The brokerage identified entry into new categories as a key growth driver that will provide the necessary momentum to the contract logistics business. These new category entries are expected to complement the ongoing business transformation and support the company's expansion strategy in the logistics sector.
