Mahindra Logistics’ (MLL) consolidated revenue was marginally lower at Rs14.2bn (PLe: Rs15.2bn) in Q1FY25, down 2% QoQ, led by sequential reduction in core 3PL (down 2% QoQ to Rs11.6bn) and B2B express (down 8% QoQ to Rs0.8bn) businesses. However, EBITDA margin expanded 80bps YoY to 4.7% (PLe: 4.1%), driven by strong performance in its 3PL business (base had a non-recurring expense of ~Rs170mn). Subsequently, consolidated EBITDA rose 17% QoQ to Rs663mn (PLe: Rs622mn). Thereby, consolidated PBT/PAT showed sequential improvement (Q1FY25 loss of Rs25mn/Rs78mn vs Q4FY24 loss of Rs92mn/Rs119mn).
OutlookThe stock is currently trading at 42.1x FY26E earnings. We change the rating to ‘Hold’ with a TP of Rs500 based on 41x FY26E P/E multiple.
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