InvestorZclub: Mahindra Logistics 2025 Annual Report: Key Insights

Wednesday, June 25, 2025

🔑 Key Strategic & Industry Insights

Logistics Sector Growth: Expected CAGR of 9.3%, with premium warehousing (Grade A) growing at 15%. Demand is rising due to e-commerce, consumption, infrastructure build-out, and government initiatives like Gati Shakti and the National Logistics Policy.
Multimodal Logistics Push: Driven by Dedicated Freight Corridors (DFCs), port-rail-road connectivity, and cost efficiency, India is seeing a shift to integrated logistics platforms. MLL is building multimodal capabilities to meet demand.
E-commerce & Quick Commerce: Hyperlocal delivery is booming, especially in Tier 2/3 cities. Quick commerce alone accounts for 65% of e-grocery orders, up from 13% in 2022. This trend is reshaping warehousing, last-mile delivery, and tech investment.
Digital Transformation: Indian logistics is embracing AI, IoT, drones, AR, real-time tracking, and digital twins. Tech is now key to operational efficiency and customer experience.

3PL Contract Logistics: ₹4,743 Cr (77.7% of revenue)
Express: ₹359 Cr (5.9%)
Cross-border: ₹306 Cr (5%)
Last-Mile Delivery (LMD): ₹381 Cr (6.3%)
Mobility Services: ₹316 Cr (5.2%).

Revenue: ₹6,105 Cr (↑10.88%)
EBITDA: ₹284 Cr (↑24%)
PAT: ₹43.5 Cr (↓30%) due to margin compression and express business losses.
Return on Net Worth: Dropped to 6.33% from 9.51% (mainly due to higher finance and depreciation costs).

ProTrucking: A premium, fuel-efficient, on-demand fleet offering for long-haul logistics across India.
Emission Analytics Report (EAR): A digital platform certified by GLEC and aligned with ISO 14083 to help clients monitor and reduce Scope 3 emissions.
Regional Distribution & Premium Cabs: Tech-driven, flexible distribution and B2C cab services to deepen urban presence and diversify revenue streams.

Whizzard (ZipZap Logistics): Focus on last-mile EV-based delivery and micro-distribution. Revenues grew 38% YoY.
2X2 Logistics: Serves outbound auto logistics; EBITDA grew 176%.
Seino JV: JV with Seino Holdings Japan to serve Japanese OEMs in India with integrated solutions.

Profitability Pressures: Margins compressed due to cost inflation, slower volume growth in Express, and rising depreciation from expansion investments.
Capital Intensity: Continued investments in warehousing and tech are vital for scale, but may impact ROE in the near term.

Exposure to a sunrise sector with massive formalization tailwinds and government support.
Strategic focus on integrated 3PL solutions, EV-led last mile, and tech-driven logistics makes it future-ready.
Strong parentage (Mahindra Group) ensures credibility, access to capital, and long-term stability.
Company aims to become a ₹10,000 crore revenue company by FY26.

Company needs to improve ROE and control cost structure as profitability lags revenue growth.
Keep an eye on execution of new offerings, subsidiary profitability, and competition in quick commerce and 3PL.