Mahindra Logistics (MAHLOG IN) – Q3FY26 Result Update – At inflection point – BUY
Published on 28 Jan 2026
While we cut our EPS estimates by 11%/10% for FY27E/FY28E as we fine tune our other income and interest expense assumptions (pertaining to lease liability); we raise our TP to Rs407 (earlier Rs386) as we roll forward our valuation to FY28E. MAHLOG IN reported healthy performance in 3QFY26 as revenues increased 19.1% YoY to Rs18,980mn (PLe Rs19,377mn) with an EBITDA margin of 5.4% (PLe 5.2%). The bottom-line was in black after 11 quarters due to narrowing losses in B2B express division and reduction in interest expenses amid fall in debt post the rights issue. We believe B2B express business is showing signs of turn-around with volumes increasing 19% YoY combined with steady improvement in yields. We expect revenue CAGR of 15% over FY25-FY28E with EBITDA margin expansion of 170bps over the next 3 years. Given healthy growth prospects and strengthening of BS post rights issue, we maintain BUY with a TP of Rs407 (23x FY28E EPS; no change in target multiple).
