On April 22, 2025, Mahindra Logistics Ltd. (MLL) saw a notable increase in its share price, rising by 5.38% to ₹324.15. This surge followed the announcement of the company’s financial results for the fourth quarter and full financial year ending March 31, 2025. Along with this, MLL also revealed the appointment of a new Managing Director (MD) and CEO, Hemant Sikka. This positive movement in the share price shows that investors have strong confidence in the company’s performance and its future leadership. As of now, the share price is trading at ₹323.50.
Strong Financial Performance
Mahindra Logistics reported impressive results for Q4 FY25, compared to the same period in FY24. The company’s revenue increased by 8.2%, rising from ₹1,451 crores to ₹1,570 crores. The company’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a significant jump of 37.3%, reaching ₹77.7 crores, compared to ₹56.6 crores last year.
Moreover, Mahindra Logistics was able to reduce its net loss to ₹6.7 crores, down from ₹12.9 crores in the previous year’s fourth quarter. This is a positive sign of improvement in the company’s financial health. The growth in revenue during the quarter was mainly driven by the strong performance of its 3PL (Third-Party Logistics) services and Express services.
Annual Revenue Growth
For the full financial year FY25, Mahindra Logistics posted a revenue of ₹6,105 crores, marking an 11% increase from ₹5,506 crores in FY24. This growth was largely due to the strong performance in 3PL, Last Mile Delivery (LMD), and Cross Border services, which contributed to the overall increase in revenue.
Leadership Change
One of the key developments in Mahindra Logistics is the appointment of Hemant Sikka as the new MD & CEO, effective April 22, 2025. Sikka, who will officially take over the role on May 5, 2025, is known for his successful tenure as the President of Mahindra’s Farm Equipment Sector, where he played a crucial role in driving market share and profitability. His leadership is expected to guide MLL through its next phase of growth and help the company achieve even greater success in the future.
This change comes after Ram Swaminathan’s resignation. Under Swaminathan’s leadership, Mahindra Logistics was able to double its revenue and expand into key business areas.
Key Business Segments Perform Well
The financial results highlight several positive trends in MLL’s key business segments:
- Express Business: This segment, which provides last-mile and time-sensitive logistics services to industries like e-commerce, retail, and pharmaceuticals, reduced its losses by 21%. The improvement was helped by better cost optimization, which also improved EBITDA margins.
- Freight Forwarding: MLL’s Freight Forwarding business saw a 21% increase in revenue, driven by favorable freight rates, strong demand in the pharmaceutical sector, and new clients.
- Warehousing and Integrated Solutions: The company’s warehousing business grew by 15% year-on-year (YoY), with total warehouse space under management expanding to 20.8 million square feet. The company is also continuing to invest in expanding its infrastructure, particularly in the Eastern and North-Eastern regions, with new facilities coming up in Pune, Kolkata, Phaltan, and Agartala.
Strategic Partnerships and Ventures
Mahindra Logistics has also made key strategic moves to strengthen its market position:
- The company entered into a joint venture with Seino Holdings, where both companies will hold equal stakes to provide integrated logistics solutions to Japanese automotive customers.
- MLL has also partnered with Asian Paints for its Pro-trucking transportation solutions, focusing on improving efficiency in transportation.
Investor Confidence and Future Outlook
The combination of strong financial results, improved performance in various business segments, and the appointment of Hemant Sikka as the new MD & CEO has generated positive sentiment in the market. Mahindra Logistics is positioning itself well to take advantage of the growing logistics market in India.
The company’s focus on expanding service offerings, improving operational efficiency, and forming strategic partnerships will likely drive future growth. The improvements in the Express business and the overall strong performance in other segments suggest that Mahindra Logistics is on track for continued profitability and growth in the coming years. This positions the company well to create value for its shareholders while tapping into new opportunities in the logistics industry.
