Allcargo Logistics reported ₹3,952 crore in consolidated revenue in Q4FY25, up 18% YoY, with EBITDA up 17% at ₹115 crore. But beyond numbers, it’s the massive corporate restructuring that’s turning heads — the company is demerging its international supply chain (ISC) biz and merging Express + Contract Logistics into one unified juggernaut. Welcome to the next evolution of Indian logistics.

🏢 About the Company

• Name: Allcargo Logistics Limited
• HQ: Mumbai, Maharashtra
• Listed on: BSE (532749), NSE (ALLCARGO)
• Global footprint: 300+ offices, serving 180 countries
• Core businesses:
  • LCL consolidation via ECU Worldwide
  • Express logistics via Allcargo Gati
  • Contract logistics via Allcargo Supply Chain
  • Recent spinoffs: Allcargo Terminals, TransIndia Real Estate

🧑‍💼 Key Managerial Personnel (KMP)

💰 Q4 & FY25 Financials (Consolidated)

📦 Business Highlights

📦 LCL & FCL Biz

• LCL growth muted at 1% (but still 8.9 million CBM, which is no joke)
• FCL volumes rose 7% YoY, driven by resilience in core trade lanes
• Air freight? Booming — 51% jump in Q4 volume YoY 💨

🏭 Contract Logistics

• Revenue jumped 48% YoY
• EBITDA only up 2% — white space drag continues, but management expects this to normalize

🚚 Express Logistics (Allcargo Gati)

• Revenue at ₹1,510 Cr (+2%)
• EBITDA grew 34% YoY
• Margin expansion: Gross profit up 80 bps, EBITDA margin up 110 bps
• This is impressive for a business that’s been bleeding in the past

🔄 Restructuring: The Allcargo Split That Could Multiply Value

In classic Indian conglomerate style, Allcargo is pulling a Mukesh Ambani — deconstructing to create value.

📌 What’s happening?

• ISC (International Supply Chain) will be demerged into Allcargo Worldwide Ltd.
• Contract Logistics + Express Business will be merged into Allcargo Logistics Ltd.

🧩 Result?

The Allcargo Group will now have 4 listed companies:

👀 Why should investors care?

• Clearer structure = Better valuation unlock
• Focused management for each vertical
• Potential for strategic stake sales, JVs, or IPOs in each entity

📊 Forward-Looking Fair Value (FV) Estimate

Let’s do a quick sum-of-the-parts guesstimate based on current structure:

Current Market Cap: ₹3,300 Cr
Implied Upside: ~53% if restructuring delivers as expected

⚠️ This is not investment advice — just what your friendly neighborhood spreadsheet says. 🤓

🌍 Industry & Outlook

• Geopolitical headwinds continue, but India’s rising share in global trade is a big tailwind
• Express logistics is seeing formalization push (e-invoicing, GST tracking = shift to organized players)
• Contract logistics is booming thanks to EVs, pharma, and e-commerce
• Demerger + focus = potential for Allcargo to be a multi-head monster that actually works

🧠 EduInvesting Take

If the logistics sector were a cricket team, Allcargo just dropped 2 slow players and got 2 all-rounders in return.

• The express biz is no longer bleeding red ink
• Contract logistics is quietly becoming a ₹2,000 crore giant
• The global ISC business is getting its own shiny new listed avatar
• And Allcargo is playing chess, not checkers — exactly what you want in a ₹3,000 Cr cap company looking to scale

⚠️ Risks & Red Flags

• Global trade slowdown due to Red Sea tensions or Chinese demand slump
• Post-demerger execution risk (we’ve seen demergers go wrong — cough Vodafone Idea)
• Margin pressure in Express due to pricing wars with Delhivery & Amazon Logistics
• Regulatory delays — NCLT timelines can be a blackhole

📆 What’s Next?

• Demerger expected to complete within 2 months (subject to NCLT, SEBI, shareholder approvals)
• Listing of Allcargo Worldwide Ltd to follow
• Market may re-rate the remaining Allcargo Logistics Ltd depending on how clean and focused the new avatar looks

🗓️ Published: May 26, 2025
✍️ By: Prashant Marathe
Tags: Allcargo Logistics, Allcargo Gati, FY25 results, logistics sector India, contract logistics, freight consolidation, corporate demerger, express delivery, Indian stocks FY25