Allcargo Logistics, one of India’s leading integrated logistics service providers, reported a consolidated net loss of ₹12.59 crore for the fourth quarter ended March 31, 2025, compared to a net loss of ₹5.64 crore in the same quarter last year. The announcement triggered a negative reaction in the stock market, as shares declined 2.83% to ₹30.88.
Despite the widening of losses, the company recorded a strong improvement in its top-line performance, highlighting operational resilience and business expansion in a complex global environment.
Revenue Rises Over 18% YoY
Allcargo’s total income rose by 18.40% year-on-year (YoY), reaching ₹3,983.35 crore in Q4 FY25, compared to ₹3,364.38 crore in Q4 FY24. This surge came largely from its international and domestic logistics operations, which continued to grow despite macroeconomic uncertainties.
Revenue Breakdown by Segment (Q4 FY25):
- International Supply Chain: ₹3,442.93 crore (up 17.95% YoY)
- Express Distribution: ₹385.35 crore (up 8.53% YoY)
- Contract Logistics: ₹129.42 crore (up 61.59% YoY)
The contract logistics segment emerged as a significant growth driver, delivering a YoY surge of over 61%, reflecting increasing demand for warehousing and last-mile connectivity solutions from sectors like e-commerce, retail, and pharma.
Losses Narrow Before Exceptional Items
The company reported a loss before exceptional items and tax of ₹0.94 crore in Q4 FY25, which significantly narrowed from the ₹19.46 crore loss in the same quarter last year. This improvement suggests better cost management and efficiency in core operations, even as the company continued its strategic investments.
However, the company reported an exceptional expense of ₹3.47 crore during the quarter, which contributed to the final net loss figure of ₹12.59 crore. Without this one-off item, the bottom-line performance would have reflected even further improvement.
Rising Expenses Pressured Margins
Despite revenue growth, total expenses increased by 17.72% YoY to ₹3,986.02 crore in Q4 FY25. The jump in expenses matched revenue growth, leading to limited improvement in profitability.
Expense Highlights (Q4 FY25):
- Operating Expenses: ₹3,129.05 crore (up 20.24% YoY)
- Employee Costs: ₹517.95 crore (up 7.88% YoY)
- Finance Costs: ₹37.52 crore (up 22.49% YoY)
The rise in operating costs directly correlates with the volume of business handled, especially from international shipping and freight services. Finance costs also edged higher, reflecting interest burdens from recent capital expenditure and debt obligations.
EBITDA Growth Signals Operational Strength
Allcargo Logistics reported a solid increase in its operating earnings, with EBITDA reaching ₹115 crore in Q4 FY25, compared to ₹98 crore in Q4 FY24—marking a growth of 17.34%. This indicates that the company continues to maintain strong operational control even while scaling across verticals.
EBITDA margins remained steady despite global cost pressures in logistics, including fuel prices and shipping disruptions.
Full-Year FY25 Performance: Net Profit Down 76%
On an annual basis, Allcargo’s consolidated net profit dropped by 76.21% to ₹35.60 crore for FY25, compared to the previous fiscal year. The sharp fall came despite a 23.32% increase in total income, which reached ₹16,090.89 crore.
This contrast between revenue growth and profit decline points to substantial investments, rising costs, and volatility in international trade affecting net earnings.
Operational Volumes: Mixed Signals
Allcargo Logistics posted a mixed performance in cargo volumes for the year ending March 2025.
- LCL (Less than Container Load) Volume: 8.90 million CBM, up 1% YoY
- FCL (Full Container Load) Volume: 648,000 TEUs, up 7% YoY
For Q4 FY25, LCL volume declined by 3% YoY, while FCL volume increased by 2% YoY. These trends suggest that while full-container operations continue to expand, the less-than-container segment experienced slight softness, possibly due to shifting demand patterns or pricing pressure.
Business Outlook and Global Trade Scenario
Allcargo acknowledged the volatile outlook for international trade, driven by geopolitical instability, changing trade policies, and fluctuating global demand. However, management expressed optimism, noting recent signs of stabilization and potential recovery in global shipping volumes.
The company plans to continue enhancing its international footprint and diversify across industries to buffer against cyclical disruptions. Allcargo also focuses on technology investments to streamline operations and gain real-time visibility across its global logistics network.
Diversified Business Model a Key Advantage
Allcargo operates across multiple business segments, giving it a resilient structure to absorb shocks and seize opportunities. Its divisions include:
- Multimodal Transport Operation (MTO)
- Container Freight Stations (CFS) and Inland Container Depots (ICD)
- Projects and Engineering (P&E)
- Contract Logistics
- Logistics Parks (LPs)
The recent foray into logistics parks enhances Allcargo’s warehousing capabilities and supports the growing demand for industrial real estate in India. This initiative aligns with the government’s infrastructure push and the rising need for efficient supply chain hubs.
Investor Sentiment and Stock Performance
Following the Q4 results, Allcargo’s stock slipped by 2.83% to ₹30.88, reflecting investor concerns over the continued net losses. However, the strong revenue growth and EBITDA improvement offer a silver lining and could attract long-term investors focusing on fundamentals.
Market analysts will closely monitor upcoming quarters to assess whether the company can translate revenue growth into sustained profitability and navigate macroeconomic risks effectively.
Conclusion: Growth Amid Challenges
Allcargo Logistics delivered a mixed set of numbers for Q4 FY25. While the widening net loss grabbed headlines, a deeper look reveals a company in the midst of transition and long-term positioning.
Revenue growth across core verticals, expansion in contract logistics, and strong EBITDA performance signal operational strength. However, rising costs and geopolitical uncertainties remain pressing challenges.
The management’s strategic direction—focused on digital transformation, cost rationalization, and global expansion—could help Allcargo regain profitability in upcoming quarters. For investors, the stock presents both near-term caution and long-term promise in India’s evolving logistics landscape.