Mahindra Logistics Q2 Results: Reports 54% Decline In Q2 Standalone Profit

Mahindra Logistics Ltd on Monday reported 54% decline in standalone Profit at Rs 8.5 crore for September quarter of fiscal 2025. The company had posted a profit of Rs 18.6 crore in the second quarter of fiscal 2024, a statement said.

Revenue during the quarter under review, however, increased 9% to Rs 1,236 crore from Rs 1,136 crore in July-September fiscal 2024.

Overall revenues during second quarter of fiscal 2025 demonstrated a strong growth of 11.5% on year-on-year basis.

The company said it continues the focus on expanding capacity and making investments in the eastern and Northeastern region and also on warehouses, delivery stations and express logistics.

It expects these investments to be accretive to the growth across businesses in the later part of the year.

"During the quarter, we saw strong revenue performance with year-on-year growth of 11.5%. Our 3PL contract logistics, cross border and last mile delivery segments registered strong growth driven by account additions, new offerings and a stable cross border pricing environment," said Rampraveen Swaminathan, managing director and chief executive officer at Mahindra Logistics Ltd.

During the quarter, the company expanded offerings for transportation and green logistics and continues to expand the overall network, with new infrastructure expansions in the east to support warehousing, last mile and express segments, which should help drive future growth.

"With the upcoming peak in Q3, we have expanded capacity and resources in contract logistics and last mile delivery, having a seasonal impact on operating earnings in the quarter," he said.

"A soft demand environment and operating conditions impacted the express business. We believe H2 will be stronger driven by the festive peak and impact of margin improvement programs across all the businesses," Swaminathan said.

Revenues for freight forwarding business grew 65% on YoY basis on the back of improved pricing in ocean freight, Mahindra Logistics said.

It also said the ongoing geopolitical conflicts continue to impact the cross-border market and remain a key monitorable.

Losses for the express business were reduced by 32% on YoY basis, driven by continuous cost optimization.

Growth in volumes continues to be a key priority for the business as it progresses towards an EBITDA breakeven, it said and added that the third party logistics business is proactively geared up to build capacity to meet the increased demand during the festive peak in the third quarter of financial year 2025.