Mahindra Logistics (MAHLOG IN) – Q4FY26 Result Update – MAHLOG IN version 2.0 loading! – BUY
Published on 24 Apr 2026
MAHLOG IN reported better-than-expected performance in 4QFY26 as revenues increased 14.1% YoY to Rs17,914mn (PLe Rs17,841mn) with an EBITDA margin of 6.3% (PLe 5.3%). PAT surpassed Rs200mn mark (PLe Rs76mn; CE Rs89mn) for the first time since 4QFY19 led by strong operating performance. We believe MAHLOG IN is showing signs of turnaround led by transformation in the B2B express division. Amid steps taken to optimize the linehaul cost, improve lane utilization levels and expand the network coverage we expect B2B express business to report revenue CAGR of 17.0% over the next 2 years with EBITDA margin of 2.5%/3.5% in FY27E/FY28E respectively. Entry into new categories is likely to drive growth in contract logistics business while white space reduction (absorption of 0.3mn sq ft in 4QFY26) should aid margins. Consequently, we expect revenue CAGR of 13.0% over the next 2 years with EBITDA margin of 6.4%/6.6% in FY27E/FY28E respectively. We change our valuation methodology to EV/EBITDA as rental disclosures have begun and value the stock at 14x pre-IND AS EBITDA of FY28E to arrive at a TP of Rs504 (implied PE of 28x on pre-IND AS EPS of Rs18.1 for FY28E). Retain BUY.
