ALLCARGO - Allcargo Logist.

📊 NSE: ALLCARGO 🏢 Miscellaneous 📅 Last Updated: 12/13/2025 18:10

💰 Financial Performance

Revenue Growth by Segment

In Q2 FY26, the company reported a revenue growth of 10-11% YoY, driven by a combination of price and volume. For fiscal 2025, the International Supply Chain (ISC) segment contributed 88% of total revenue (INR 14,077 Cr), Express Logistics contributed 9%, and Contract Logistics contributed 3%.

Geographic Revenue Split

The company operates across multiple geographies globally, which helps negate localized business impacts. Specific percentage splits per region are not disclosed in the available documents.

Profitability Margins

H1 FY26 Gross Margin (GM) stood at 29%. The company reported a positive Profit Before Tax (PBT) of INR 9 Cr in Q2 FY26, a significant improvement from the negative PBT reported in the previous quarter and the same quarter last year.

EBITDA Margin

The company has provided a guidance for an EBITDA CAGR of 20% through FY28. Operating leverage is expected to play out to drive higher EBITDA growth relative to revenue as the restructuring synergies are realized.

Capital Expenditure

The company is maintaining an asset-light business approach but has planned capital expenditure of nearly INR 330 Cr for the current fiscal year to support its logistics infrastructure.

Credit Rating & Borrowing

As of June 30, 2025, the company had a gross debt of INR 1,059 Cr and a net debt of INR 467 Cr. Gearing was 0.44 times as of March 31, 2025, with an adjusted interest cover of approximately 3.3 times for fiscal 2025.

⚙️ Operational Drivers

Raw Materials

As a logistics provider, primary operational costs are 'Freight and Handling Costs' and 'Fuel/Energy', rather than traditional raw materials. Freight advances are mentioned as a key financial component.

Import Sources

The company sources freight capacity globally from international shipping lines and airlines to support its ISC and express distribution services.

Key Suppliers

Suppliers include global shipping lines and airlines. The company acts as an agent for various lines in its International Supply Chain business.

Capacity Expansion

In Q2 FY26, the company handled a total volume of 3.26 lakh metric tons, representing a 6% YoY increase and an 11% QoQ increase. Expansion is driven by the asset-light model and network growth.

Raw Material Costs

Not disclosed as a percentage of revenue; however, freight and handling costs are the primary drivers of the 71% cost of sales (implied by the 29% Gross Margin).

Manufacturing Efficiency

Operational efficiency is measured by volume growth; the express business delivered its highest-ever quarterly revenue and volume in Q2 FY26.

Logistics & Distribution

Distribution costs are the core of the Express and ISC segments. The Express business achieved record volumes in Q2 FY26 due to festive season demand.

📈 Strategic Growth

Expected Growth Rate

20%

Growth Strategy

Growth will be achieved through a composite restructuring scheme that eliminates the holding structure, merging Express and Consultative Logistics into Allcargo Logistics to unlock synergies and operational efficiencies. The company is also listing its ISC business separately as Allcargo Global in Q4 FY26 to unlock value.

Products & Services

Services include LCL (Less than Container Load) consolidation, FCL (Full Container Load) forwarding, express distribution, contract logistics, and consultative logistics.

Brand Portfolio

Allcargo Logistics, Gati, Allcargo Global, Allcargo Supply Chain.

New Products/Services

The company is focusing on integrated transportation and logistics solutions, combining Gati's reach with ISC and contract logistics to offer end-to-end services.

Market Expansion

The restructuring aims to position the company for long-term value; Allcargo Global is expected to be listed on exchanges in Q4 FY26.

Market Share & Ranking

Allcargo is a leading integrated logistics player in India with a dominant position in the LCL consolidation market globally.

Strategic Alliances

The company acquired Gati Limited (now Allcargo Gati) for INR 406.5 Cr and the remaining stake in ASCPL for INR 163 Cr to integrate domestic and contract logistics.

🌍 External Factors

Industry Trends

The industry is shifting toward integrated, digital-first logistics. Allcargo is positioning itself by eliminating its step-down holding structure to become a single operating listed entity by January 1, 2026.

Competitive Landscape

Competes with global freight forwarders and domestic express players like Blue Dart and TCI Express.

Competitive Moat

The moat is sustained by a global network in over 180 countries and the vertical integration of Gati’s domestic reach, which is difficult for competitors to replicate quickly.

Macro Economic Sensitivity

Highly sensitive to global GDP and trade volumes; a slowdown in trade is a primary downward rating factor for its credit profile.

Consumer Behavior

Demand is influenced by festive seasons in India, which drove record volumes in the express business during Q2 FY26.

Geopolitical Risks

Geopolitical tensions affecting trade routes or resulting in trade barriers pose a risk to the ISC segment's volumes.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to international maritime regulations, pollution norms for its fleet/vehicles, and import/export restrictions across various geographies.

Environmental Compliance

The company has expressed a commitment to ESG principles to enhance stakeholder confidence and access to capital markets.

Taxation Policy Impact

The company follows standard corporate tax rates; specific fiscal impacts are not detailed beyond the impact of the restructuring scheme.

Legal Contingencies

The company received a legal notice from the promoter of RSLPL for a claim of INR 10 Cr regarding alleged unauthorized freight advances by a former CEO. The company does not expect a material impact from this.

⚠️ Risk Analysis

Key Uncertainties

Key risks include a sustained slowdown in global trade volumes (potential impact on 88% of revenue) and the successful integration of the merged entities.

Geographic Concentration Risk

Revenue is diversified globally, though the domestic Indian market is a significant focus for the Express and Contract logistics segments.

Third Party Dependencies

High dependency on third-party shipping lines and airlines for ISC capacity, as the company operates an asset-light model.

Technology Obsolescence Risk

The company is investing in strategic restructuring to enhance operational efficiencies and mitigate the risk of digital disruption in the logistics chain.