Mahindra Logistics (MAHLOG IN) – Management Meet Update – On a transformational journey – BUY
Published on 17 Jun 2026
We met the management of MAHLOG IN to understand the turnaround strategy of B2B express business. Since the change of guard at top-level, steps have been taken to optimize linehaul cost, improve lane utilization levels, expand network coverage, bolster feet-on-street, and improve service levels resulting in a tangible improvement in profitability profile. We believe MAHLOG IN is showing signs of turnaround as 1) B2B express business is on the verge of EBITDA break-even (loss of INR25mn in 4QFY26), 2) problem of unabsorbed white space is likely to get resolved by Sep-26 and 3) entry into new categories is likely to provide the necessary growth kicker to contract logistics business. Amid ongoing business transformation, we expect revenue/EBITDA CAGR of 13%/25% over FY26-FY28E. The stock trades at 12x/9x our FY27E/FY28E pre-IND AS EBITDA estimates and we believe the recent correction offers a good entry point from a long-term perspective. Retain BUY with a TP of INR504 (14x FY28E pre-IND AS EBITDA; no change in target multiple).
