Mahindra Logistics Q4 Results Review - Leveraging Multiple Cost Levers: Prabhudas Lilladher

Prabhudas Lilladher Report

Mahindra Logistics Ltd. consolidated revenue grew 4% QoQ to Rs 14.5 billion (our estimate: Rs 14.2 billion), driven by sequential improvement in standalone third party logistics (up 2% QoQ to Rs 11.8 billion), freight forwarding (up 15% to Rs 0.6 billion) and B2B express business (up 2% to Rs 1 billion).

Consolidated Ebitda rose 8% QoQ to Rs 566 million (our estimate: Rs 567 million). Ebitda margin expanded 20 bps YoY to 3.9% (our estimate: 4%) as lower employee expense was partly offset by higher other expenses while consolidated profit before tax/profit after tax continued in the negative territory (loss of Rs 92 million/Rs 119 million), but showed sequential improvement (Q3 loss of Rs 134 million/164 million).

The stock is currently trading at 37.2 times FY26E earnings. We maintain Accumulate rating with a target price of Rs 500 based on 41 times FY26E price/earning multiple.

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