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Allcargo Logistics Ltd

| Quarterly Financial Results Q3 FY 2025-26

NEUTRAL SENTIMENT

Report Source

⬤6th Feb 26

Summary : Allcargo Logistics reported Q3 FY26 results, re-constituted committees, and is undergoing significant corporate restructuring, while addressing tax and regulatory issues.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Operating Expenses (Standalone & Consolidated): Q3 FY26 - 363 Cr, 9M FY26 - 1,091 Cr.
  2. Employee Benefits Expenses (Standalone & Consolidated): Q3 FY26 - 52 Cr, 9M FY26 - 160 Cr.
  3. Finance Cost (Standalone & Consolidated): Q3 FY26 - 16 Cr, 9M FY26 - 47 Cr.
  4. Depreciation and Amortisation Expenses (Standalone & Consolidated): Q3 FY26 - 51 Cr, 9M FY26 - 153 Cr.
  5. Other Expenses (Standalone & Consolidated): Q3 FY26 - 40 Cr, 9M FY26 - 119 Cr.
  6. Standalone Revenue from Operations: Q3 FY26 - 516 Cr, 9M FY26 - 1,544 Cr.
  7. Consolidated Revenue from Operations: Q3 FY26 - 516 Cr, 9M FY26 - 1,544 Cr.
  8. Revenue from Discontinuing Operations (Standalone & Consolidated): Q3 FY26 - 43 Cr, 9M FY26 - 135 Cr.
  9. CCI penalty of Rs. 50 lakh for alleged procedural non-compliance.
  10. Both standalone and consolidated unaudited financial results are presented and reviewed.

Corporate Overview

  1. Operations primarily in India, with offices in Mumbai, Chennai, Ahmedabad, Bengaluru, Gurugram, Hyderabad, Kolkata, Pune.
  2. Ongoing income tax search by authorities.
  3. Penalty imposed by Competition Commission of India (CCI).
  4. Impact of new Labour Codes on employee benefits.
  5. Mainly engaged in Contract Logistics services, including Express Delivery and warehousing.
  6. Discontinuing the Fuel stations business.
  7. Internal reorganisation led to 'domestic logistics services' as the sole reportable segment.
  8. Formal and informative, announcing board decisions and financial results.
  9. Domestic logistics services is the primary reportable segment.

Risk Factors

  1. Ongoing income tax search uncertainty.
  2. Financial impact of CCI penalty.
  3. Complexities in corporate restructuring.
  4. Increased costs from new labor codes.

Key Drivers

  1. Restructuring completion drives efficiency.
  2. Resolution of tax and legal issues.
  3. Growth in domestic logistics services.
  4. New labor codes improve operations.

Auditor’s Report

  1. Unmodified conclusion on standalone and consolidated financial results.
  2. Composite scheme of arrangement for demerger of international supply chain business, overriding Ind AS requirements.
  3. Search operation by Income tax Authorities during the previous year.
  4. Prior period financials (Dec 31, 2024, and Mar 31, 2025) were audited by another auditor with an unmodified conclusion.

Board Commentary

  1. Re-constitution of the Risk Management, Finance, Strategy and Legal Committee.
  2. Income tax search and related notices.
  3. CCI penalty for procedural non-compliance.
  4. Impact of new Labour Codes on employee benefits.
  5. Income-Tax Authorities conducted search operations.
  6. Received notice from Income Tax Department for ITR-B filing.
  7. Competition Commission of India (CCI) imposed a penalty of Rs. 50 lakh.
  8. Composite scheme of arrangement involving demerger of ISC business and merger of ASCPL, GESCPL, and AGL.

Corporate Governance

  1. Risk Management, Finance, Strategy and Legal Committee includes two Independent Directors.
  2. Re-constitution of Risk Management, Finance, Strategy and Legal Committee.

Management Discussion & Analysis

Future Strategy

  1. Re-constitution of key Board Committees (Risk Management, Finance, Strategy, Legal).
  2. Integration of various entities through a composite scheme of arrangement.

Operational Focus Areas

  1. Ensuring compliance with new Labour Codes.
  2. Addressing ongoing legal and regulatory matters.

Performance Drivers

  1. Corporate restructuring through demerger and mergers.
  2. Operational efficiency from internal reorganisation of segments.

Risk Control Measures

  1. Full cooperation with income tax authorities.
  2. Accounting for new Labour Code impact in financial results.
  3. Restatement of financial figures due to scheme of arrangement.

Critical Risks

  1. Uncertainty regarding the outcome of income tax search.
  2. Financial impact of the CCI penalty.
  3. Complexities and accounting challenges of the composite scheme of arrangement.