Net Loss-Mahindra-Logistics-1

Net Loss

  • Net loss: Rs 16 crore (vs. net profit of Rs 11 crore in Q2 FY23)
  • Revenue: Rs 1,365 crore (vs. Rs 1,326 crore in Q2 FY23)
  • Mobility business: Continues to see an uptick, registering 133% year-on-year growth and now being net profitable

Navigating through a challenging phase, Mahindra Logistics recently announced a consolidated net loss of Rs 16 crore for Q2 FY24, marking a significant downturn from its Rs 11 crore net profit in the same quarter last year. This downturn has occurred despite a slight increase in consolidated revenues, highlighting the complex business dynamics at play.

However, not all is bleak for Mahindra Logistics. Their mobility business is bucking the trend, showcasing a robust 133% year-on-year growth. This surge is not just a number — it has propelled the segment into profitability. The success stems from a strategic expansion of their customer base, alongside substantial growth within existing contracts.


Rampraveen Swaminathan, the company’s Managing Director and CEO, remains optimistic about the industry’s landscape. He points out the overall favourable environment, bolstered by infrastructural advancements, manufacturing uptrends, burgeoning consumer demands, and a regulatory framework that seems to be evolving in the right direction. These factors, according to Swaminathan, are well-poised to cushion industry players from temporary setbacks.


Specifically for Mahindra Logistics, the resilience comes from its diversified approach. The company’s 3PL organic growth is holding steady, a direct result of successful end-market diversification strategies. They are not letting e-commerce headwinds slow them down; instead, they are pushing for margin improvements across various business segments. This aggressive stance towards profitability is evident in their relentless pursuit of operating cost reductions and strategic enhancements in their service mix.

Mobility business

Swaminathan acknowledges the need for proactive measures. The company is actively fortifying its network and customer service capabilities, particularly in its MLL Express and cross-border logistics divisions. The goal is clear: to capitalize on the forthcoming festive season’s demand surge. The focus is unwavering, with an accelerated drive toward bolstering margins through network synergies and cost-cutting initiatives.

In the midst of these strategic manoeuvres, Mahindra Logistics also announced an internal reshuffle. Ruchie Khanna, the acting company secretary and compliance officer, is set to exit her role due to an intra-group transfer, effective November 30, 2023. Jignesh Parikh is stepping into her shoes starting December 1, 2023. Parikh, armed with substantial experience and a robust academic background, is expected to steer the regulatory compliance segment effectively. His prior role within Mahindra & Mahindra Limited has equipped him with a deep understanding of the group’s operational ethos and compliance mechanisms.


  • The company’s mobility business continues to grow, registering 133% year-on-year growth and now being net profitable.
  • The company’s organic growth in 3PL remained positive, driven by its end-market diversification programmes, despite headwinds in the e-commerce segment.
  • The company has implemented appropriate actions to strengthen the network, customer service, and volume enhancements in MLL Express and cross-border logistics businesses.
  • The company’s overall logistics industry is well poised, driven by a long-term focus on infrastructure, manufacturing, consumption growth, and a positive regulatory trajectory.


  • The company’s net loss in Q2 FY24 was due to headwinds in the e-commerce segment.
  • The company’s margins are still under pressure.
  • The company is facing increasing competition from other logistics and mobility providers.

E-commerce segment

This period signifies a test of resilience for Mahindra Logistics. Yet, with strategic growth levers, a clear focus on profitability, and a leadership team that’s steering the company through these headwinds, they are poised not just to navigate through current challenges but to emerge stronger in the post-pandemic logistics landscape.


Mahindra Logistics is at a pivotal juncture. Despite facing a setback with a recent net loss, the company is not in retreat. Instead, it is strategically advancing, leveraging growth in its mobility business and capitalizing on industry opportunities. The proactive efforts to diversify offerings, optimize costs, and enhance service efficiency underscore the company’s resilience and adaptability in a dynamic market.

The leadership, represented by individuals like Swaminathan and Parikh, is a critical asset, embodying the strategic foresight and agility necessary to navigate through industry headwinds. Their commitment to harnessing growth avenues—be it through network strengthening, service enhancements, or seizing seasonal market opportunities—speaks volumes about the company’s robust strategy and growth mindset.


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