1. At a Glance
Allcargo Logistics Ltd – once the king of container yards, now the reigning monarch of mergers and demergers – just completed one of India’s most confusing corporate yoga poses. As ofNov 1, 2025, the company pulled off amega demerger, birthingAllcargo ECU Ltdand swallowingAllcargo Gatiinto itself. Imagine a Rubik’s Cube of logistics — but each move affects shareholders, and somehow there’s also a 3:1 bonus share twist.
At ₹ 14.7 a share (as ofNov 21, 2025), the stock trades with aP/E of 67.5x, anROE of 2.49%, and adividend yield of 7.48%— because when profits vanish, yield becomes your only friend. Market cap? A humble₹ 1,449 Cr, which feels like pocket change for a company moving cargo across180 countries.
Quarterly revenue stands at₹ 537 Cr(up11.2% QoQ), but PAT slipped23.5% QoQto ₹ 13 Cr. The operating margin finally climbed back above11.5%, though that may be a one-off. Debt is a solid ₹ 674 Cr, but with an interest coverage ratio of 0.78, “solid” may not be the right word.
Basically, Allcargo is a logistics legend currently navigating the kind of turbulence that even their cargo planes would fear. But how did India’s No. 1 CFS operator and the world’s No. 1 LCL consolidator get tangled up in this shareholder origami? Let’s unpack.
2. Introduction – When Logistics Meets Drama
Every logistics firm moves goods. Allcargo moves balance sheets.
Founded in 1993, this Mumbai-based logistics giant spent decades building the ultimate integrated platform — fromMultimodal Transport Operations (MTO)toContainer Freight Stations (CFS),Project & Engineering (P&E),Express Distribution, and evenLogistics Parks. By FY21, the company had stretched across 180 countries, boasting more direct trade lanes than India has traffic jams.
And just when everyone thought it couldn’t get more global,Allcargo Gati Ltdentered the picture — and exited just as fast. The 2023-25 demerger marathon would make even corporate lawyers sweat:
- TheInternational Supply Chain (ISC)business is now a new baby:Allcargo ECU Ltd.
- TheExpress and Contract Logisticsbusinesses remain under Allcargo Logistics.
- Allcargo Gatishareholders get63 sharesin Allcargo Logistics for every 10 they held.
- And everyone, somehow, gets1:1 sharesin Allcargo ECU Ltd after a3:1 bonus.
If that sounds like a Bollywood plot, it’s because it is — complete with CFO exits, MD reshuffles, and a November press release titled “NCLT-approved merger effective Nov 1.” Even the company’s LinkedIn must be struggling to keep up.
Yet, beneath the chaos lies a serious infrastructure backbone — terminals, warehouses, and multimodal transport solutions that touch nearly every port in India. The only question now: can this cargo juggernaut carry its own weight?
3. Business Model – WTF Do They Even Do?
Allcargo Logistics operates in more segments than most investors can memorize. Let’s break it down for the lazy-but-smart reader:
A) Multimodal Transport Operations (MTO)Think of this as Uber for global cargo. No ships owned, but they controlLCL (Less than Container Load)andFCL (Full Container Load)consolidation. ThroughECU Worldwide, they dominate global LCL shipping with4,000+ port pairsacross180 countries. Basically, if there’s a port, they’ve probably confused customs there.
B) Container Freight Stations (CFS)This is their domestic muscle. Allcargo runs India’s widest CFS network — from JNPT to Chennai to Mundra. Services range fromimport/export handlingtohazardous cargo,bonded warehousing, andreefer container monitoring. Essentially, it’s where your imported sneakers chill before hitting Flipkart.
C) Express Distribution (via GATI Ltd)Allcargo’s high-speed, high-anxiety division. This segment moves time-bound shipments across India using surface and air transport. Clients includee-commerce majors, auto companies, and SMEs.
D) Project & Engineering (P&E)The brawny cousin. Specializes inheavy lifting,turnkey transport, andequipment leasing. The kind of logistics that moves 200-ton transformers for power plants.
E) Logistics Parks & WarehousingIf you thought Allcargo was just trucks and cranes, surprise! They’re now also landlords — with460 acres of land,14 logistics parks, and facilities near every industrial hub that matters.
In short:they move everything from your Amazon parcels to refinery turbines, and
occasionally their own subsidiaries.
4. Financials Overview
| Metric (₹ Cr) | Latest Qtr (Sep 25) | YoY Qtr (Sep 24) | Prev Qtr (Jun 25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 537 | 483 | 491 | 11.2% | 9.4% |
| EBITDA | 62 | 49 | 51 | 26.5% | 21.6% |
| PAT | -2 | 14 | -12 | -114.3% | 83.3% |
| EPS (₹) | -0.04 | 0.17 | -0.09 | — | — |
Commentary:Revenue ticked up but profits did a disappearing act — again. PAT slipped into the red with a ₹ 2 Cr loss, while margins finally crawled into double digits (11.55%) for the first time in months. The P/E of67xfeels like the market’s sympathy vote rather than confidence.
When EPS is negative, P/E is “not meaningful” — just like the phrase “synergistic demerger.”
5. Valuation Discussion – Fair Value Range (Educational)
Let’s play fair and clean:
A) P/E MethodIndustry P/E =25.2xAllcargo’s FY25 EPS = ₹ 0.36→Fair Value Range = ₹ 9 to ₹ 11 per share(assuming normalized EPS of ₹ 0.4–0.45 post-merger).
B) EV/EBITDA MethodEV = ₹ 1,985 CrEBITDA (TTM) = ₹ 365 CrEV/EBITDA =5.4x, close to peers (4–6x range).Fair EV-based range = ₹ 13–₹ 16 per share.
C) Simplified DCFIf we assume a 4% long-term FCF yield and ₹ 261 Cr operating cash (FY25),→DCF-implied fair range ₹ 12–₹ 15.
→ Fair Value Range (Educational): ₹ 9 – ₹ 16 per share
Disclaimer:This fair value range is foreducational purposes onlyand is not investment advice. Even their CFO probably doesn’t know what happens next.
6. What’s Cooking – News, Triggers, Drama
If you thought the cargo business was boring, you haven’t followed Allcargo in 2025.The last quarter was a corporate thriller:
- Nov 1, 2025:NCLT approvedAllcargo–Gati mergerandECU demerger, effective immediately. Shareholders now need a flowchart to understand what they own.
- New leadership:Ketan Kulkarni became MD & CEO; Deepak Pareek was named CFO — both stepping in mid-storm.
- EOW Complaint (Oct 3, 2025):Allcargo filed a police complaint against itsownCEO and a customer owner over a ₹ 10 Cr liability. A logistics company that can’t locate accountability — poetic.
- H1 FY26 results:Revenue crossed ₹ 1,000 Cr, which sounds good until you realize it used to do ₹ 3,000 Cr per quarter pre-restructuring.
With CRISIL updating ratings
