Mahindra Logistics Ltd. share price target

Mahindra Logistics’ (MLL) revenue grew ~11% YoY to INR16.8b in 2QFY26, in line with our estimate. EBITDA margin came in at 5% (up 60bp YoY and 30bp QoQ) vs. our estimate of 5.1%. EBITDA grew ~28% YoY to INR851m (in line with our estimate).

Proceeds from rights issuance will be utilized to deleverage the BS. As of 30th June, debt on books stood at ~Rs6,040mn We increase our EPS estimates by 26%/8% for FY26E/FY27E amid interest cost reduction arising from debt repayment with the proceeds expected to be received from rights issuance. MAHLOG IN reported an in-line operating performance with an EBITDA margin of 4.7% (PLe 4.9%). While volumes in the B2B express business were up by 10% on a sequential basis, yields remained...

Express business has secured new monthly orders of ~5,000 MT to lower demand in core 3PL segment, operating performance was broadly inline with EBITDA margin of 5.0% (PLe 4.6%). Though EBITDA losses in B2B express business have narrowed from Rs803mn in FY24 to Rs511mn in FY25, a complete turnaround in near term continues to remain a cause of concern. While management expects EBITDA break-even by 2QFY26E, incremental...

Mahindra Logistics (MLL)’s revenue grew ~8% YoY to INR15.7b in 4QFY25, in line with our estimate. EBITDA margin came in at 5% (+110bp YoY and +30bp QoQ) vs. our estimate of 4.7%. EBITDA rose ~37% YoY to INR777m (in line).

Mahindra Logistics (MLL)’s revenue grew ~14% YoY to INR15.9b in 3QFY25, in line with our estimate.

Rivigo's turnaround & industry tailwinds to boost profits

We retain BUY on Mahindra Logistics Limited (MLL) with a revised PT of Rs. 560, factoring in downwardly revised estimates, while it remains on a growth path.

Mahindra Logistics Limited’s (MLL) Q2FY25 EBITDA performance undershot our/consensus estimates by 6.2%/23.6%. Key points: 1) Network services, which is ~18% of overall business, grew 46.1% YoY while 3PL grew by 6.8%. 2) Gross margins
improved for network services.

We retain BUY on Mahindra Logistics Limited (MLL) with a revised PT of Rs. 632, rolling forward our
valuation to H1FY2027E earnings, while it remains on a growth path across businesses.

MLL's performance, QoQ, has improved. Overall, EBITDA of INR 663mn (down 0.5% YoY) was 19.7%/1.7% above our/Street’s estimates.

Mahindra Logistics (MLL)’s 1QFY25 revenue grew ~10% YoY to INR14.2b (in line). EBITDA margin came in at 4.7% (vs. our est. of 4.5%), down 50bp YoY but up 80bp QoQ. EBITDA was flat YoY at INR663m (in line) in 1QFY25.

Mahindra Logistics’ (MLL) Q4FY24 EBITDA was slightly above our estimates and marginally below street’s expectations.

Mahindra Logistics (MLL)’s 4QFY24 revenue grew by ~14% YoY to INR14.5b
(in line). EBITDA margin came in at 3.9% (in line), down 100bp YoY and up
20bp QoQ. EBITDA decreased 11% YoY to INR566m (in line). MLL posted a
net loss of INR128m vs. INR8m in 4QFY23 (our estimate of INR6m loss).

Mahindra Logistics Limited (MLL) reported marginally higher consolidated revenue at Rs. 1,451 crore (up 14% y-o-y), led by healthy growth in its core standalone business (mainly 3PL, revenue up 12% y-o-y) and express business (up 26% y-o-y), while the freight business witnessed a sequential improvement (up 15% q-o-q)

Mahindra Logistics’ (MLL) Q2FY24 EBITDA was significantly below our and street’s expectations. Key points: 1) Express business was underwhelming with EBITDA-level loss widening QoQ to INR 244mn; 2) warehousing & solutions revenue was impacted by a churn; however, gross margin improved 25% YoY; 3) freight forwarding business was impacted by a significant decline in ocean freight rates and deferment of volumes from some telecom contracts.

Mahindra Logistics’ (MLL) Q1FY24 EBITDA was in line with our estimates; however, it was 3.3% below consensus estimates. Key points: 1) Overall revenue grew 7.8% YoY led by growth in both SCM and mobility businesses on the back of improved performance in 3PL and network services; 2) freight-forwarding business continues to face headwinds YoY.