Mahindra Logistics shares rise 4 percent on narrower loss in Q4FY25

Mahindra Logistics shares gain over 3 percent with narrower loss revealed in Q4FY25 results

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Shares of Mahindra Logistics are trading higher by 4 percent on April 22 on posting a narrower loss for the March quarter due to steady gains in its mainstay - the contract logistics business - and an improved performance from Rivigo, the express commerce unit.

Mahindra Logistics reported a consolidated net loss of Rs 67.5 crore in Q4FY25, down from Rs 128.5 crore a year earlier, marking its ninth straight quarterly loss. Total revenue rose 8.2 percent on-year, led by an 8.7 percent growth in the supply chain management (SCM) segment, while the mobility business saw a modest uptick of 1.3 percent. Expenses climbed 7.4 percent to Rs 1,571 crore during the quarter.

An ICICI Securities note said the company’s Q4FY25 EBITDA performance came in ahead of expectations, aided by improved operating metrics in the SCM segment. Sequentially, SCM gross margins improved to 9.5 percent versus 9.2 percent in Q3FY25, although mobility margins saw a minor dip to 10.1% percent.

Losses at Rivigo narrowed to Rs 116 crore in Q4FY25 from Rs 134 crore in the previous quarter and Rs 149 crore a year ago, with the management optimistic about EBITDA breakeven in the segment by the end of Q2FY26.

ICICI Securities has raised its EBITDA estimates for FY26/FY27 by 5.6 percent and 1 percent, respectively, however, it trimmed the profit forecast due to higher depreciation and interest costs linked to Rivigo's acquisition.

With a visible operational improvement and the Rivigo drag gradually reducing, ICICI Securities upgraded the stock to ‘Add’ from Hold, though it marginally lowered the target price to Rs 350, shifting the valuation basis to 7x FY27 EV/EBITDA from a P/E-based approach.

The company continues to face stiff competition in the $342 billion domestic logistics sector, with rivals like Blue Dart and Delhivery aggressively investing to gain market share, even as pressure from in-house logistics arms of Amazon and Flipkart seems to be on the rise.