1. At a Glance – Blink and You’ll Miss the Value (or the Trap)
Allcargo Logistics today feels like that once-famous Bollywood star you spot at an airport lounge — recognisable name, glorious past, but currently surrounded by questions. With a market cap of ₹1,520 Cr and a stock price of ₹10.1, the company trades at a P/E of 108x, which is either peak optimism or peak denial, depending on how much coffee you’ve had. Over the last 3 months the stock is down ~17%, and over 1 year it’s down ~25%, which tells you Mr. Market isn’t exactly clapping.
Latest Q3 FY26 results (Quarterly Results – lock it here) show revenue of ₹516 Cr, flat QoQ and slightly negative YoY, while PAT came in at ₹0 Cr (yes, zero is not a typo). ROCE is a sleepy 3.84%, ROE an even sleepier 2.49%, and interest coverage at 0.78 screams “bankers are watching.”
But then comes the curveball: 10.8% dividend yield. Sounds delicious… until you notice the 219% payout ratio. That’s not generosity, that’s financial cardio. Curious already? Good. Let’s dig.
2. Introduction – From Global Giant to Balance Sheet Detox Patient
Once upon a time, Allcargo Logistics was the poster child of Indian logistics — global LCL dominance, ports everywhere, and a founder with big, audacious ambition. Fast forward to FY26 and the story is less “growth saga” and more “corporate restructuring thriller.”
The December 2023 demerger announcement split the business soul in two:
- Allcargo ECU Limited took away the international LCL crown jewel (ECU Worldwide).
- Allcargo Logistics Ltd was left holding India-focused logistics — Express, Contract Logistics, CFS, P&E, Warehousing.
This wasn’t cosmetic surgery; this was organ transplant. The idea was simple: unlock value, reduce complexity, give investors clarity. The result? A slimmer balance sheet, lower revenues, and a stock price that forgot how to smile.
Now the company is rebuilding its identity post-demerger, post-Gati amalgamation, post-management reshuffle. The big question: is this a phoenix moment or just ashes settling?
3. Business Model – WTF Do They Even Do Now?
Let’s simplify this for the “too smart but too
lazy” investor.
A) Multimodal Transport (India-facing)
Earlier this was the global superstar via ECU Worldwide. Now it’s largely India-focused NVOCC, domestic consolidation, and limited international exposure. Lower margins, higher competition, and zero monopoly vibes.
B) CFS – Container Freight Stations
This is Allcargo’s bread-and-butter Indian monopoly-ish business. Pan-India presence, sticky port-linked assets, decent entry barriers. Margins aren’t sexy, but volumes are stable. Think toll road, not Ferrari.
C) Express Distribution (ex-Gati)
Time-bound deliveries, SMEs, e-commerce, surface + air. Great market, brutal competition. Delhivery, Shadowfax, Blue Dart all breathing down the neck. Integration pains are real, synergies are promised.
D) Project & Engineering (P&E)
Heavy cargo, turnkey transport, equipment leasing. Lumpy revenues, feast-or-famine. When it clicks, EBITDA smiles. When it doesn’t, accountants cry.
E) Logistics Parks & Warehousing
Land bank of ~460 acres, 14 parks, 50–100 acres each. Capital intensive, long gestation, but potentially steady annuity if executed well.
So what is Allcargo now? A domestic logistics utility trying to rediscover profitability after selling off its global crown jewel. Do you like turnarounds, or do they give you heartburn?
4. Financials Overview – The Quarter That Refused to Perform
| Metric | Latest Qtr (Q3 FY26) | YoY Qtr (Q3 FY25) | Prev Qtr (Q2 FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 516 | 519 | 537 | -0.6% | -3.9% |
| EBITDA (₹ Cr) | 61 | 62 | 62 | -1.6% | -1.6% |
| PAT (₹ Cr) | 0 | -6 | 9 | NA | -100% |
| EPS (₹) | 0.00 | -0.06 | 0.09 | NA | -100% |
Commentary:
Revenue is flat like a dead ECG line. EBITDA margin looks optically better (~11.8%) because the business base itself has shrunk
