Mahindra Logistics Limited is a leading integrated logistics and supply chain solutions provider in India, offering customized services in warehousing, transportation, and last-mile delivery. Part of the Mahindra Group, it serves diverse industries like automotive, FMCG, and e-commerce. With a focus on technology-driven solutions and sustainability, the company operates an extensive network, delivering efficient, end-to-end logistics services across the country.
In this article we are going to discuss the summary of the management commentary that was delivered on Q4FY25 performance.
Leadership Transition
Rampraveen Swaminathan (MD & CEO) stepped down, and Hemant Sikka (formerly President of Mahindra & Mahindra’s Farm sector) was appointed as the new MD & CEO effective April 22, 2025.
Industry and Business Overview
FY25 Challenges
All the players from carriers to freight brokers, to logistics start-ups, infrastructure providers, all felt the weight of economic headwinds, the regulatory uncertainties and, of course, global disruptions.
The year also saw some major elections at both Central and State levels, which slowed down growth, especially from a consumption perspective which drives a lot of company’s business.
Positive Tailwinds
The recent interest rate cuts and tax relief announced in the budget should start an increased level of growth.
Post-COVID restructuring of demand and consumption cycles, especially on things like appliances and durables, the introduction of the BEEE rating, some of those, all of them have had some impact in terms of disruption of demand, but they’re all now past us. And therefore, the industry is looking forward to a period of stronger growth.
Segment Performance
Automotive & Farm
- The Automotive business remains company’s biggest end market and overall industry volumes have been bolstered by the early arrival of the festive season.
- The two-wheeler segment recorded low-to-mid-single-digit growth.
- A real positive thing has been rural demand growth during the quarter. Strong discounts and new product launches have helped momentum and helped maintain momentum.
- Passenger vehicle volumes have witnessed growth, primarily driven by robust performance of SUVs.
- Commercial vehicle volumes have recorded growth, but it’s on a very low base. The medium and heavy commercial vehicle segment continues to be constrained.
- Tractors stood out with strong doubledigit growth, fueled by a bit of a rural revival and improved food grain production, higher MSPs.
FMCG
- The FMCG industry, which probably represents around a little bit of — around 20% of company’s demand and probably a larger part of company’s growth.
- The urban markets are experiencing a sustained slowdown, while rural demand is showing signs of gradual recovery.
Consumer Durables
- The Indian Meteorological Department’s forecast of above normal temperatures and potential heat waves is already shaping market dynamics.
- Robust demand for cooling products, including RACs, fans and coolers is expected as consumers prepare for an intense summer.
- One of the important things which happened in this industry, especially on fans was the introduction of the BEEE norm last year. And as that transitions out, the management thinks they are now seeing demand settling down to more consistent patterns.
- RACs firms are actively stocking up to ensure supply keeps pace with this heightened demand, setting the stage for significant growth in the coming months.
E-commerce & Quick Commerce
- The grocery segment continues to grow, but the growth of quick commerce has resulted in distribution models for grocery marketplaces kind of undergoing a change and most of them are being forced to review their strategy and their way forward.
Contract Logistics: Strong Growth and Expansion
The contract logistics segment was a key contributor to the quarter’s performance. Key highlights include:
Revenue Growth: Warehousing revenue increased by 19%, reaching INR 297 crores in Q4 FY25 from INR 249 crores in Q4 FY24. For the full year, warehousing revenue grew by 15%, from INR 984 crores to INR 1,133 crores.
New Space Contracting: The company secured contracts for approximately 1 million square feet of additional warehousing space to address unabsorbed “white space” challenges faced over the past 12-18 months. These projects are under implementation and expected to be fully occupied by Diwali 2025, significantly boosting capacity utilization.
Strategic Focus: The segment benefited from increased demand in e-commerce and FMCG sectors, with a slight uptick in order intake. The company remains bullish on expanding warehousing and related solutions, which have quadrupled since 2021.
Express Business: Recovery and Strategic Priorities
The Express business, which faced challenges in Q3 FY25 due to soft order intake and operational disruptions, showed improvement in Q4:
Performance Recovery: Despite Q4 typically being a sequentially weaker quarter, the Express business recorded stronger performance, with revenues at INR 93.8 crores. Losses narrowed to INR 23.7 crores, reflecting year-on-year and sequential improvement.
Order Intake: New contract order intake remained steady at approximately 5,000 tons per month. The company is targeting an additional 6,000-7,000 tons per month to achieve EBITDA breakeven, with expectations to reach this by the end of Q2 FY26.
Growth Strategies: To drive volume growth, Mahindra Logistics is expanding its sales organization, enhancing market coverage, and focusing on synergies with its 3PL business. Tailored offerings for segments like quick commerce and regional distribution are also being prioritized to improve penetration in underserved markets.
Subsidiary Performance: Robust Contributions
Several subsidiaries delivered strong performances in FY25, contributing to overall growth:
Mobility Business: The mobility segment generated INR 80 crores in revenue, slightly down from INR 84 crores in Q4 FY24 due to account churn in Q3. However, profitability remained stable at INR 1.3 crores, with new customer ramp-ups expected to restore revenue growth in coming quarters.
2×2 Logistics: The automotive car carrier business had a standout year, with Q4 revenue of INR 24 crores, up 60% from INR 15 crores in Q4 FY24. Profit after tax (PAT) increased to INR 3.3 crores from INR 1.9 crores.
ZipZap Logistics (Whizzard): Revenue grew to INR 42 crores from INR 32 crores in Q4 FY24, with profitability nearing breakeven. The business saw significant improvement compared to the previous year and remains a key growth lever, particularly in non-e-commerce last-mile delivery (15% of revenue).
LORDS: The freight forwarding subsidiary also performed well, with Q4 revenue of INR 69.4 crores, up 10% year-on-year, despite pricing volatility challenges.
Key Challenges and Focus Areas
Mahindra Logistics identified several external and operational challenges that require ongoing attention:
Global Trade Volatility: The freight forwarding business faces uncertainty due to global tariff actions, particularly from the U.S. administration. Demand and pricing volatility are expected to persist through the first two quarters of FY26, impacting the forwarding segment.
Extended Project Timelines: New project rollouts have stretched from the historical 90-120 days to approximately 150 days or longer, posing challenges to operational efficiency and revenue realization.
Inflation Pressures: Rising manpower costs, driven by reliance on migrant labor across eight to nine major states, are a significant concern. The company is focusing on cost control and management to mitigate inflationary pressures.
Express Business Volume Growth: Achieving sustained volume growth in the Express segment remains a top priority, with efforts centered on expanding sales reach, leveraging synergies, and customizing offerings.
Financial Performance Highlights
Consolidated Income Statement – Q4 FY25 vs Q4 FY24
| Particulars | Q4 FY25 (₹ Cr.) | Q4 FY24 (₹ Cr.) | Y-o-Y Change |
|---|---|---|---|
| Revenue | 1,569.5 | 1,450.8 | +8.2% |
| Gross Margin (GM) | 148.7 | 136.9 | +8.6% |
| GM % | 9.5% | 9.4% | +4 bps |
| EBITDA | 77.7 | 56.6 | +37.2% |
| EBITDA % | 5.0% | 3.9% | +105 bps |
| PAT (after NCI & JV) | -6.7 | -12.8 | +47.4% |
| PAT % | -0.4% | -0.9% | +46 bps |
Consolidated Income Statement – FY25 vs FY24
| Particulars | FY25 (₹ Cr.) | FY24 (₹ Cr.) | Y-o-Y Change |
|---|---|---|---|
| Revenue | 6,104.8 | 5,506.0 | +11% |
| Gross Margin (GM) | 571.1 | 525.6 | +9% |
| GM % | 9.4% | 9.5% | -19 bps |
| EBITDA | 284.0 | 229.0 | +24% |
| EBITDA % | 4.7% | 4.2% | +49 bps |
| PAT (after NCI & JV) | -35.9 | -54.7 | +35% |
| PAT % | -0.6% | -1.0% | +41 bps |
Segment-wise Revenue – Q4 FY25
| Segment | Revenue (₹ Cr.) | YoY Growth |
|---|---|---|
| Contract Logistics | 1,233 | +9% |
| B2B Express | 93 | -4% |
| Freight Forwarding | 76 | +20% |
| Last Mile Delivery | 88 | +10% |
| Mobility | 79 | +1% |