Mahindra Logistics: Neutral Rating Maintained, Target Price Set at Rs 410 by Motilal Oswal

Mahindra Logistics Posts Strong Q4 Results, Maintains Neutral Rating

Mahindra Logistics (MLL) has reported a robust financial performance in the fourth quarter of fiscal year 2026 (4QFY26). The company's revenue surged approximately 14% year-over-year (YoY) to reach ₹17.9 billion, which is in line with expectations.

The logistics firm's earnings before interest, tax, depreciation, and amortization (EBITDA) margin expanded significantly, reaching 6.3% in 4QFY26. This represents a notable improvement of 130 basis points (bp) YoY and 90 bp quarter-over-quarter (QoQ) compared to the previous quarter. The company's EBITDA also grew around 45% YoY to ₹1,124 million, surpassing Motilal Oswal's estimate by 10%.

Mahindra Logistics' adjusted net profit for 4QFY26 stood at ₹202 million, marking a significant recovery from the adjusted net loss of ₹68 million recorded in the corresponding quarter of the previous fiscal year (4QFY25).

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Outlook and Recommendations

Motilal Oswal forecasts a robust growth trajectory for Mahindra Logistics, with revenue and EBITDA compound annual growth rates (CAGR) of 16% and 25%, respectively, over the fiscal years 2026-2028. The research firm has maintained its Neutral rating for the company and revised its target price (TP) to ₹410, premised on a price-to-earnings ratio (P/E) of 20 times for the estimated earnings per share (EPS) of fiscal year 2028.