Mahindra Logistics (MAHLOG IN) – Q1FY27 Result Update – Growth advantage overshadowed by weak margins – BUY
Published on 22 Jul 2026
MAHLOG IN reported better-than-expected top-line performance with an 8% beat led by new client wins in contract logistics segment and healthy traction in B2B express business. However, EBITDA margin missed our estimate by 70bps as startup cost linked to new sites, fuel inflation and manpower issues impacted profitability. Nonetheless, margin headwinds are transitory and we expect recovery by 2HFY27E once new sites mature (1.5mn sq ft of warehousing space has been added in 1QFY27) and full benefit of fuel pass through clause materializes. Led by healthy traction in B2B express business and new client wins in contract logistics business we expect revenue CAGR of 15% over the next 2 years with EBITDA margin of 6.1%/6.5% in FY27E/FY28E. Retain BUY on the stock with a TP of INR507 (14x FY28E pre-IND AS EBITDA; no change in target multiple).
