Allcargo Logistics Posts Strong PBT Growth in Q3FY26

09 Feb 2026 CW Team

During the quarter, the company completed the integration of its express distribution and contract logistics businesses and implemented Oracle Fusion Accounting Software, enabling unified operations across customers, warehousing infrastructure, transport assets and technology platforms. Q3FY26 was positioned as a transition quarter, with emphasis on improving service quality, strengthening profitability and preparing the platform for future growth.

Ketan Kulkarni, Managing Director and Chief Executive Officer, Allcargo Logistics Limited, said the quarter marked the successful completion of integration, with the company now operating as a unified domestic logistics platform. He noted that the express business recorded strong volume recovery in December, leading to market share gains, while yield-enhancement initiatives resulted in a meaningful improvement in gross margins. Contract logistics witnessed muted demand due to deferred expansion by certain e-commerce clients, although underlying client relationships remained strong. On a cumulative basis, the domestic business continued to remain profitable.

On the financial front, the company reported a 7 per cent year-to-date increase in revenue, while EBITDA rose by 9 per cent. Profit Before Tax, before exceptional items, increased sharply by 50 per cent.

The express distribution segment registered EBITDA growth of 19 per cent year-on-year and 6 per cent quarter-on-quarter, driven by improved service quality, customer retention and new client additions. Contract logistics delivered revenue growth of 23 per cent year-to-date and 5 per cent year-on-year, with EBITDA growth of 16 per cent year-to-date and 2 per cent year-on-year, despite subdued demand during the quarter.

With integration complete, Allcargo Logistics expects EBITDA and PBT to grow faster than revenue in the coming quarters. The company will focus on yield-led margin expansion, technology-led execution and new growth levers, particularly in the Full Truck Load and transport segments.

Allcargo Logistics Limited, following approval of its organisational restructuring plan for its domestic supply chain business, recently announced its consolidated financial results for the quarter ended December 31, 2025.During the quarter, the company completed the integration of its express distribution and contract logistics businesses and implemented Oracle Fusion Accounting Software, enabling unified operations across customers, warehousing infrastructure, transport assets and technology platforms. Q3FY26 was positioned as a transition quarter, with emphasis on improving service quality, strengthening profitability and preparing the platform for future growth.Ketan Kulkarni, Managing Director and Chief Executive Officer, Allcargo Logistics Limited, said the quarter marked the successful completion of integration, with the company now operating as a unified domestic logistics platform. He noted that the express business recorded strong volume recovery in December, leading to market share gains, while yield-enhancement initiatives resulted in a meaningful improvement in gross margins. Contract logistics witnessed muted demand due to deferred expansion by certain e-commerce clients, although underlying client relationships remained strong. On a cumulative basis, the domestic business continued to remain profitable.On the financial front, the company reported a 7 per cent year-to-date increase in revenue, while EBITDA rose by 9 per cent. Profit Before Tax, before exceptional items, increased sharply by 50 per cent.The express distribution segment registered EBITDA growth of 19 per cent year-on-year and 6 per cent quarter-on-quarter, driven by improved service quality, customer retention and new client additions. Contract logistics delivered revenue growth of 23 per cent year-to-date and 5 per cent year-on-year, with EBITDA growth of 16 per cent year-to-date and 2 per cent year-on-year, despite subdued demand during the quarter.With integration complete, Allcargo Logistics expects EBITDA and PBT to grow faster than revenue in the coming quarters. The company will focus on yield-led margin expansion, technology-led execution and new growth levers, particularly in the Full Truck Load and transport segments.

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