Mahindra Logistics reported a strong financial performance in the first quarter of FY27, with its standalone profit after tax (PAT) increasing nearly fivefold year-on-year to INR 29 crore, compared to INR 6.44 crore recorded in the corresponding quarter of the previous financial year. 
According to the company's regulatory filing, standalone revenue from operations grew 23 per cent to INR 1,654.89 crore, up from INR 1,345.82 crore in the same quarter last year. The increase was supported by healthy demand across the company's core logistics businesses and continued focus on improving operational performance. 
On a consolidated basis, Mahindra Logistics reported a profit after tax of INR 27.83 crore during the quarter, compared to a loss of INR 9.44 crore in the year-ago period. Consolidated revenue from operations also rose 23 per cent year-on-year to INR 2,002.88 crore, from INR 1,624.59 crore. 
The company said the revenue growth was broad-based and came from its third-party logistics (3PL), express and mobility businesses, reflecting sustained demand across multiple business segments. 
Managing Director and Chief Executive Officer Hemant Sikka said the first quarter of FY27 reflected continued progress in the company's transformation into a growth-focused business. He stated that strong revenue growth, the return to healthy profitability and improved business fundamentals were driven by disciplined execution, better customer-level economics and a continued focus on operational excellence. 
He further said the quarter's performance was supported by strong growth in the contract logistics business, new customer acquisitions across different industries, continued improvement in the express business and higher operational efficiencies across the company's network. 
The contract logistics business recorded 26 per cent year-on-year growth during the quarter, while EBITDA increased 31 per cent. The company said better operating efficiencies, cost discipline, improved customer-level profitability and operating leverage helped margins improve faster than revenue growth. 
Mahindra Logistics also said its e-commerce and quick commerce logistics business continued to expand during the quarter, strengthening its presence in one of the fastest-growing segments of the logistics industry. The company has been increasing its focus on serving digital commerce businesses as demand for faster fulfilment and last-mile delivery continues to rise. 
The express business registered 58 per cent year-on-year growth, driven by higher shipment volumes as well as better yields. The company said this led to improvements in gross margins and EBITDA for the fourth consecutive quarter, indicating continued progress in its turnaround strategy for the segment. 
The last-mile delivery business reported an EBITDA of INR 2.6 crore, compared with a loss of INR 50 lakh in the corresponding quarter last year. However, revenue from the business declined 16 per cent year-on-year as the company intentionally recalibrated its customer portfolio to focus on more profitable accounts amid continued pricing pressure and higher operating costs. 
The mobility business also delivered strong growth, expanding 38 per cent year-on-year on the back of new customer additions in the business-to-business (B2B) segment. EBITDA from the business increased 8 per cent over the same period. 
The company further said that the warehouse space under management increased to 21.9 million square feet, rising by 1.52 million square feet compared to the previous quarter. The expansion was driven by the addition of new warehousing facilities developed for specific customers. 
Mahindra Logistics has been strengthening its integrated supply chain network over the past few years by expanding warehousing capacity, enhancing technology-led logistics solutions and increasing its presence in high-growth segments such as e-commerce, quick commerce and contract logistics. The latest quarterly performance indicates that these initiatives, along with improved cost management and customer acquisition, are supporting both revenue growth and profitability. 
Source PTI