Mahindra Logistics achieves 14.1% revenue growth in Q3 FY25, strengthens core operations

Mahindra Logistics Limited (MLL), a prominent logistics solutions provider in India, has announced a robust 14.1% year-on-year (YoY) revenue growth for the third quarter of the financial year 2025 (Q3 FY25). With consolidated revenue climbing to ₹1,594 crore from ₹1,397 crore in the same quarter of the previous year, MLL demonstrated strong operational performance despite industry challenges.

The company attributed the growth to increased demand in its core third-party logistics (3PL) services, freight forwarding operations, and a renewed focus on cost optimisation. These factors helped narrow its net loss to ₹9 crore for the quarter, a significant improvement compared to the ₹17.4 crore loss reported in Q3 FY24.

What drove Mahindra Logistics’ revenue growth in Q3 FY25?

Mahindra Logistics’ growth trajectory in Q3 FY25 reflects its ability to adapt to shifting market dynamics while capitalising on opportunities in logistics and supply chain management. A standout performer was its 3PL supply chain services, which grew by 14% YoY. This segment benefited from increased demand in key verticals such as automotive, consumer goods, and durable products.

In addition, the company’s freight forwarding business experienced an 18.9% YoY revenue increase, driven by higher export volumes and a favourable softening of ocean freight rates. The network services division, which includes last-mile delivery, saw a remarkable 22.9% YoY growth. According to industry experts, the rising adoption of integrated logistics solutions and improved infrastructure investments have positioned MLL to cater to growing market demand effectively.

How is Mahindra Logistics addressing operational challenges?

One of the critical areas of improvement for Mahindra Logistics in Q3 FY25 was its express business. Historically a loss-making segment, this division showed notable progress, with losses narrowing by 26.5% YoY. The company’s focus on continuous cost optimisation strategies played a pivotal role in achieving this improvement.

Furthermore, EBITDA (earnings before interest, taxes, depreciation, and amortisation) losses in the express business were reduced by 40.3% YoY. Analysts believe this progress underscores MLL’s commitment to achieving operational efficiency and paving the way for sustained profitability in the segment.

What are Mahindra Logistics’ expansion plans?

As part of its strategy to bolster its position as a logistics solutions provider, MLL has been actively expanding its warehousing footprint. In Q3 FY25, the company added 0.7 million square feet of warehouse space, bringing its total managed space to over 22.3 million square feet. This expansion aligns with MLL’s goal of enhancing its operational capabilities in Western and Eastern India to meet growing demand from clients.

In his statement, Rampraveen Swaminathan, Managing Director and CEO of Mahindra Logistics, highlighted the company’s proactive approach to scaling its offerings. “Our outbound logistics and cross-border services showed exceptional growth due to account additions and new service launches. We remain focused on margin expansion through cost management and turning around the express business,” Swaminathan noted.

How is Mahindra Logistics performing over nine months?

For the nine months ending December 31, 2024 (9M FY25), MLL’s consolidated revenue increased by 11.8% YoY to ₹4,535 crore, up from ₹4,055 crore in 9M FY24. EBITDA during this period rose to ₹206 crore, reflecting a 19.8% YoY growth, while net losses narrowed significantly to ₹29.1 crore from ₹41.9 crore in the previous year.

On a standalone basis, the company’s nine-month revenue reached ₹3,719 crore, up 11% YoY. However, standalone EBITDA decreased marginally to ₹218 crore, as operational headwinds persisted in certain segments.

What makes Mahindra Logistics a leader in integrated logistics?

Founded in 2007, Mahindra Logistics Limited has consistently positioned itself as a pioneer in India’s third-party logistics (3PL) sector. The company employs an asset-light business model, enabling it to provide customised and technology-driven solutions across supply chain management and enterprise mobility.

Serving over 400 corporate clients across industries such as automotive, engineering, consumer goods, and e-commerce, MLL has established itself as a trusted logistics partner. Its focus on leveraging technology and enhancing efficiency has made it a competitive force in the sector.

Parent company Mahindra Group, a global conglomerate with a presence in over 100 countries, lends its strength and innovation to Mahindra Logistics. This synergy ensures that MLL remains at the forefront of the evolving logistics landscape in India.

What’s next for Mahindra Logistics?

As Mahindra Logistics moves forward, its priorities include continuing its warehousing expansion, optimising costs, and driving growth in high-potential segments such as green logistics and express delivery. The company’s ability to adapt to market trends and deliver integrated solutions positions it well to maintain its growth momentum.

Analysts point to Mahindra Logistics’ strategic focus on technology and its robust service portfolio as key differentiators in a competitive market. By targeting operational efficiencies and addressing pricing headwinds, the company is poised to enhance its profitability and cement its reputation as a leading logistics solutions provider in India.