Mahindra Logistics Limited (MLL), a part of Mahindra & Mahindra, has initiated a strategic realignment aimed at improving its operational and financial performance. This follows a quarter where consolidated revenue grew 14% year-on-year to Rs 1,625 crore, despite reporting a consolidated loss of Rs 10.8 crore.
Managing Director and CEO Hemant Sikka, during the post-results conference with analysts, said, “Over the last quarter, we emphasised strategic execution, architecting capabilities to scale our integrated solutions ecosystem and accelerate the transition toward future readiness.” Sikka took charge of the company around two and a half months ago.
He noted that the top priority for Mahindra Logistics is to aggressively address the existing “white space” in the company’s warehousing operations, which currently stands at approximately 21.1 million square feet under management. The company is now looking to optimise the current capacity, with no further expansion of space planned until full capacity is utilised.
Furthermore, recognising the unique dynamics and evolving demands within its broad client base, Mahindra Logistics is restructuring its consumer and manufacturing verticals. These segments, identified as high-potential growth opportunities driven by India’s consumption story and ‘Make in India’ efforts, will now operate independently.
This separation, led by dedicated vertical heads and support teams, aims for sharper execution, deeper customer engagement, and stronger long-term outcomes. The intent is to unlock more value from India’s robust economic expansion, particularly in these crucial sectors, the company noted.
Additionally, in a move aimed at enhancing efficiency and reducing costs, Mahindra Logistics has integrated its Whizzard operations with its Last Mile Delivery (LMD) services. This unified structure is projected to bring synergy, reduce costs, and enable better coordination.
Likewise, the B2B Express segment, which recently crossed the ₹100 crore revenue mark for the first time in Q1 FY26, is viewed as a “multi-decade opportunity for growth” with the “maximum profit pool globally” in the logistics industry, the company noted.
To underpin these strategic initiatives and provide the necessary financial headroom, Mahindra Logistics is raising approximately Rs 750 crore through a rights issue. A substantial portion of these proceeds—an estimated Rs 556.3 crore, is earmarked for the partial or full repayment and/or prepayment of select borrowings from the company and its subsidiaries, MLL Express Services Private Limited (MESPL) and V-Link Freight Services Private Limited. As of June 30, 2025, total outstanding borrowings stood at Rs 604.06 crore.
This deleveraging effort is anticipated to generate significant annual interest cost savings in the range of Rs 40-45 crore, thereby bolstering financial efficiency and future cash flows.