Mahindra Logistics Navigates Growth Amid Profit Challenges

Mahindra Logistics Ltd reported a 54% decline in standalone Profit After Tax for the September quarter FY25. Despite increased revenues, profit slumped. The company is investing in logistics capacity and infrastructure, anticipating future gains. Freight forwarding witnessed growth, while geopolitical issues impacted cross-border activities.

In a surprising turn, Mahindra Logistics Ltd has announced a substantial 54% drop in its standalone Profit After Tax (PAT) for the September quarter of FY25, clocking in at Rs 8.5 crore. This decline comes despite a notable rise in revenue, which increased by 11.5% year-on-year, reaching Rs 1,236 crore.

Investments in expanding logistics capacity and infrastructure remain a priority for Mahindra Logistics. The company continues to place a strong emphasis on enhancing capabilities in the eastern and northeastern regions, aligning its strategy with the expansion of warehouses, delivery stations, and express logistics networks to support future business growth.

While freight forwarding revenues soared by 65% due to improved ocean freight pricing, the operating conditions for cross-border activities have been challenging due to geopolitical tensions. Moving forward, Mahindra Logistics is focused on optimizing costs and enhancing efficiency to navigate the demanding times and is bracing for a stronger performance in the festive season of the second half of FY25.

(With inputs from agencies.)