Turnaround validated but profitability remains fragile

Delivered revenue 2095.4 Cr, YoY growth 24.3%

EBITDA INR2.3 Cr vs loss of 9 Cr in Q2 FY26

Achieved target set in Q1 guidance

Gross margins improved but from depressed Q2 FY26 base

Delivered PAT 28.9 Cr; slight variance but turnaround confirmed

Management said 'medium-term' with no specific timeline, in Q&A reiterated without dates

Q2 achieved INR2.3 Cr EBITDA vs prior guidance 'FY27 target'. Milestone hit; next is PAT positive (no specific timing).

Q1 committed 1.6M → 5% of June 2025 levels by Sept 2026. Achieved in Q2, ahead of timeline.

YoY decline −44% vs prior quarter weakness; leadership transition and geopolitical issues cited; recovery pushed to H2.

Previously 'no-loss strategy', now 'growth strategy'; Q2 revenue INR68 Cr (−23% YoY); still unprofitable, capital-intensive play.

~INR100 Cr for FY27 (mostly CL and tech platform); prior call had no specific capex guidance; phased execution from Q4.

Our next milestone is PAT profitability, not near-term margin targets. We focus on achieving that with full visibility and control.

Improvement is mix of both but more yield than volume from selective calibration. Festive impact not being guided; continuous volume trend expected.

Very frugal, simple tech transformation. Capex approved by Board, phased execution from Q4 FY27. Not sharing specific ROI publicly.

We didn't specify 11% or any exact number; 100 bps improvement is our target over medium term. Current quarter shows 100 bps QoQ improvement; will continue working on all levers.

Mostly CL and our 2x2 JV. All projects undergo strict approval process internally; no project goes below ROI thresholds.

New customer additions, deeper wallet share, e-commerce and manufacturing strong. Freight forwarding recovering post-leadership transition. Cost optimization mostly played out; now focus is growth-led.

Low capex, very frugal business (~INR1000 per asset). ROCE good for the asset base. Pivoting from no-loss to growth strategy; scale will improve returns.

Multiple levers: shift transportation to warehousing (better margin), manpower productivity improvement, customer segmentation for selective pricing power. All in place; will show results.

No internal target to reduce M&M share. M&M is anchor customer, great brand, pays on time. If growth comes, M&M pie will grow; if we win 100% of M&M business, fine by us.

Management declined to guide; only provided segment commentary (CL growth from new clients, Express recovery, LMD pivot to growth)

Reiterated from Q1; no specific quarter/year. Levers identified (mix shift, manpower efficiency, pricing power) but timeline vague

Prior guidance hit; next milestone PAT positive (no timeline given)

Management explicitly avoided forward PAT guidance; focus on execution

Board-approved, phased from Q4 FY27. Mostly tech platform and CL network expansion; on track (INR50 Cr spent in H1)

MESPL EBITDA-positive achieved, but PAT profitability timeline is vague ('next milestone'). If tech platform delays or margin expansion stalls, PAT positive may slip.

YoY decline 44% (INR51 Cr vs 91 Cr) due to geopolitical disruptions (container pricing, ship routing). New leadership rebuilding; recovery timeline uncertain.

Provident fund change (INR15k→25k), wage revisions, unionization pressures. Costs difficult to pass to customers; gross margin expansion target (100 bps) at risk if cost inflation accelerates.

M&M accounts for 58% of Contract Logistics revenue. No internal target to reduce; dependence on anchor customer limits upside and creates concentration risk.

INR100 Cr tech platform capex without clear ROI metrics or payback timeline. Execution begins Q4; delays could impact efficiency gains and margin expansion.

Shifted from 'no-loss' strategy to 'growth strategy' in Q2. LMD still unprofitable (−23% YoY), capital-intensive; no clear path to profitability or margin improvement in near term.

Current gross margin 10.1% is thin; monsoon and sector-specific headwinds cited. No buffer for further cost inflation.