# 1. Financial Performance ## A. Key Figures * **Consolidated Revenue:** **₹537 Cr** (Q2 FY'26) (+11% YoY, +9% QoQ) * **Gross Profit:** **₹154 Cr** (+3% YoY, +5% QoQ) * **EBITDA:** **₹62 Cr** (+27% YoY, +22% QoQ) * **PBT:** **₹9 Cr** (Q2 FY'26 profit vs. prior loss) * **Net Cash Position:** **₹22 Cr** (Q2 FY'26) ## B. Revenue Growth * **Resilient Core Growth:** Operating business delivered strong double-digit revenue expansion, driven by favorable price-volume dynamics and improved operating leverage. * **Guidance Reaffirmed:** Management maintains long-term revenue outlook for FY '28 and FY '30, signaling confidence in sustained growth trajectory. ## C. Profitability Trends * **Profitability Inflection:** Marked turnaround with PBT shifting from negative to positive, supported by cost optimization and elimination of amortization expenses post-Gati integration. * **Leverage Emerges:** EBITDA growth significantly outpaced revenue, while declining SG&A costs confirm early operating leverage realization. ## D. Cash Flow Position * **Stable Liquidity:** Maintained positive net cash position with depreciation expected to run at **₹50 Cr per quarter**, indicating predictable capital cost profile. --- # 2. Volume & Realization ## A. Key Figures * **Volume Handled:** **3.26 LMT** consolidated (+6% YoY, +11% QoQ) * **Realization per Ton:** **₹11,564** (flat QoQ and YoY) ## B. Tonnage Handled * **Volume Momentum:** Consolidated throughput showed strong sequential and annual growth, indicating improved operational utilization and demand tailwinds. ## C. Realization per Ton * **Pricing Stability:** Realizations held firm at prior levels, reflecting disciplined pricing and stable contract conditions despite market volatility. --- # 3. Segment & Business Performance ## A. Key Figures * **Express Revenue:** **₹377 Cr** (Q2 FY26) (+6.2% YoY) · **EBITDA:** **₹17 Cr** (+31% YoY) * **Consultative Logistics Revenue:** **₹160 Cr** (Q2 FY26) (+25% YoY) · **EBITDA:** **₹46 Cr** (+21% YoY) * Warehousing Scale: 8.4 million sq. ft. managed as of Sep-25 ## B. Express Logistics * **Record Performance:** Achieved highest-ever quarterly and monthly revenue, with Express being the only top 5 player to gain market share sequentially in Q2. * **Growth Drivers:** Strong festive demand and agile execution fueled sequential and YoY improvements across operations. * **Strategic Focus:** Express is now purely B2B, while retail logistics has been moved to Consultative Logistics; expansion underway in last-mile delivery for key clients. ## C. Consultative Logistics * **Robust Momentum:** Delivered strong double-digit revenue and EBITDA growth, supported by scale in contract logistics and warehouse footprint of **84 crore sq. ft.** * **Vertical Expansion:** Building on strengths in chemical, auto, and engineering sectors, with targeted acceleration into **retail and FMCG** verticals. * **Synergy Leverage:** Cross-business integration enabling new service lines—**Air Express for VOR**, and **last-mile pharma delivery** using temperature-controlled infrastructure. * **Customer Concentration:** Business is more concentrated, with **top 10 customers contributing over 50%** of revenue, versus ~20% in Express. --- # 4. Capacity & Infrastructure ## A. Key Figures * Warehouse Space: 8.4 million sq. ft. managed by Consultative Logistics * **EBITDA Margin:** **>29%** in supply chain business amid capex cycle ## B. Warehouse Space * **Scaled Logistics Footprint:** Extensive warehouse network supports integrated operations, particularly enabling Express’s transit storage needs. ## C. Capex Deployment * **Capex-Led Margin Anomaly:** Ongoing warehouse deployment driving current margin strength, with EBITDA margins exceeding 29% despite typical pressure from expansion. --- # 5. Tech & Digital Enablement ## A. Strategic Tech Initiatives * **Headline:** Digital transformation remains central to growth, with tech acting as a dual enabler of physical logistics and digital operational efficiency. * **Headline:** Cloud-native infrastructure and mobile-first design are being deployed to elevate customer and partner experience across the shipment lifecycle. * **Headline:** New and enhanced **booking** and **last mile delivery apps** now provide end-to-end digital enablement at pickup and delivery touchpoints. ## B. Operational Tech Upgrades * **Headline:** Express segment leverages **Control Tower**, **Hub Eye**, and **Gate Scan** systems for real-time truck monitoring, exception management, and improved hub efficiency. * **Headline:** Upgraded **WMS system** set to go live within **90 days**, enabling expansion into new verticals with advanced warehouse capabilities. * **Headline:** Finance operations modernized via successful **Oracle ERP** implementation, boosting agility in accounting and financing processes. --- # 6. Integration & Restructuring ## A. Key Figures * **Share Swap Ratio:** **63 shares** of Allcargo Logistics for every **10 shares** of Allcargo Gati * **Record Date:** **November 12, 2025** (ex-date for Allcargo Logistics) * Allcargo Global listing anticipated in January, subject to approvals ## B. Demerger Completion * **Restructuring Finalized:** Composite scheme complete, with international business demerged into Allcargo Global and domestic operations consolidated into a **single listed entity**, Allcargo Logistics, effective November 1, 2025. * **Leadership Alignment:** **Ketan** now serves as MD & CEO of Allcargo Logistics, streamlining oversight of the domestic supply chain business. * **Strategic Rationale:** Move aims to unlock synergies, enhance operational efficiency, and drive long-term value across stakeholder groups. * **Terminal Business Clarification:** Terminal operations were demerged over two years ago and are no longer part of current supply chain entities. ## C. Share Swap Progress * **Swap Execution Underway:** Gati shareholders to receive swap shares **this week**, with credit of Allcargo Logistics shares imminent. * **Global Share Distribution:** Allcargo Logistics shareholders will receive Allcargo Global shares post-submission of audit and IM, expected within **1 to 5 weeks**. * **Post-Approval Timeline:** Trading in Allcargo Global expected to commence **shortly after exchange approvals**, following listing in January. --- # 7. Demand & Macro Indicators ## A. Key Figures * E-way Bill Generation: 132 Mn in Sep-25 (+21% YoY, +2.2% QoQ) * GST Collections: ₹1.95 Lakh Cr for Oct-25 (+4.6% YoY) ## B. Macro Environment & Economic Momentum * **Resilient Domestic Demand:** Robust goods movement and formal sector activity reflect strong underlying economic momentum, supported by healthy GST inflows and record e-way bill volumes. * **Favorable Policy Climate:** 6% GDP growth outlook underpinned by infrastructure push, manufacturing-friendly reforms, and **on-target inflation and fiscal discipline**, creating a conducive backdrop for logistics demand. * **Sector Tailwinds:** Positive macro and micro indicators validate sustained formalization and consumption strength, enabling the company to leverage favorable market conditions for performance delivery. --- # 8. Risks & Restructuring Impact ## A. Key Figures * **Amortization Charge:** **₹12 Cr** Q2 FY'26 · **₹25 Cr** H1 FY'26 (demerger & Gati acquisition) * **Composite Scheme Expense:** **₹15 Cr** Q2 FY'26 (one-time stamp duty and related costs) ## B. Comparison Challenges * **Non-Comparability Warning:** YoY financial comparisons are flawed due to restructuring; management advises focusing on operating business performance. * **Transitional Reporting:** Q2 FY'26 results include legacy businesses; consolidated reporting continues until full transition. * **One-Time Impacts:** Exceptional expenses from the composite scheme disclosed separately and **will not recur**, with no future impact on PBT. ## C. Transition Period Effects * **Structural Shift Timing:** December 2025 quarter includes only one month of consolidated legacy data; new standalone structure effective October 1. * **Full Integration Achieved:** As of **January 1, 2026**, Allcargo Logistics standalone financials will reflect the fully merged operating subsidiaries. * **Amortization Cease:** The **₹25 crore H1 amortization charge** related to Gati integration will not recur post-transition. --- # 9. Guidance & Outlook ## A. Growth Trajectory * **Forward-Looking Context:** Call covered operating and financial highlights for Q2 and H1 FY26 (ended September 30, 2025), including forward-looking statements based on management's current expectations. ## B. Operating Leverage * **Yield Management Strategy:** Annual General Price Increases (GPI) to be driven by inflation, service quality, and customer value, supporting pricing power. * **Structural Leverage:** Integration of Express and Consultative Logistics to unlock operating leverage via shared infrastructure and overlapping customer bases. * **SG&A Scalability:** EBITDA to benefit from a multiplier effect as **SG&A costs remain largely flat** amid revenue growth. * **Efficiency Initiatives:** Ongoing focus on internal efficiency, performance monitoring, and customer engagement to sustain cost-effective expansion.