Mahindra Logistics (MAHLOG IN) – Q2FY27 Result Update – Progressing from turnaround to acceleration – BUY
Published on 24 Oct 2026
We increase our EBITDA estimates by ~8% for FY28E/FY29E as we fine tune our growth and GM assumptions for contract logistics business. MAHLOG IN reported better-than-expected performance with revenue/EBITDA beat of 9%/13% led by new client wins in contract logistics segment and turnaround in B2B express business. The contract logistics business has shown healthy traction with top-line growth of 27% in 1HFY27 but GM performance has been subdued impacted by temporary factors including startup costs from rapid site additions and manpower shortages. Nonetheless, as fuel inflation pass-through clauses have been activated, white space problem is resolved (95% reduction achieved) and plan is to increase the share of warehousing component (higher margin business) we expect contract logistics business to report EBITDA margin of 7.6%/7.8% in FY28E/FY29E. In addition, after having achieved an EBITDA break-even in 2QFY27, network expansion is likely to drive growth and profitability in B2B express business. We expect revenue/EBITDA CAGR of 16%/25% over FY26-FY29E and retain BUY on the stock with a TP of INR584 (13x Sep-28E pre-IND AS EBITDA; no change in target multiple).
