Maheshwari Logistics FY26: ₹1,110 Cr in Revenue, ₹16.8 Cr in Profit, and a Multiple Trading at Exactly Book Value
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1 — At a Glance
Maheshwari Logistics closed FY26 with sales of ₹1,110 crore, its highest top line in the nine years on the Data Sheet, and a net profit of ₹16.84 crore — down from ₹18.42 crore the year before. So revenue set a record while profit slipped. That gap is the whole entry in one line.
The operating engine actually firmed up: operating profit rose to ₹70 crore from ₹69 crore, with the operating margin holding around 6%. Below that line, interest climbed to ₹35 crore, the single largest non-operating drag on the company. For a business that moves coal, paper and trucks on borrowed working capital, the interest line is not a footnote — it is the plot.
The March quarter sharpened the contrast. Revenue of ₹293.92 crore was the strongest quarter on record, up 13.5% year-on-year, yet quarterly net profit of ₹4.71 crore came in 39.5% below the ₹7.78 crore of March 2025 — a quarter that had carried an unusually low tax charge. The market currently pays about 12.7 times earnings here.
The attention signal: a company that grows revenue every other year. The worry signal: interest coverage that the dump flags as low, and a return on equity stuck near 8%. A business can run hard for a decade and still hand most of the spread to its lenders. Whether the fourth segment — a new Mahindra dealership — changes that arithmetic is the question the next few years answer.
2 — Introduction
Maheshwari Logistics was incorporated in 2006 and converted to a limited company in December 2016. It sits in an unglamorous corner of Indian industry: carriers and transporters, dealing in paper products, coal and lignite. The registered office is in Vapi, Gujarat, which tells you most of what you need to know about the company’s geography and its raw-material exposure.
The business runs on three legs that became four. There is a trading arm in coal, petcoke and waste paper; a kraft-paper manufacturing unit; and a transportation fleet. In Q3 FY24 the company added a Mahindra & Mahindra dealership for commercial vehicles in the 7.5-to-49-tonne range, formally inaugurated in November 2023. Per the Brickwork rating rationale, that dealership posted ₹88.05 crore of revenue in FY25, its first full year, at a 4–5% EBITDA margin.
The recent governance record has been busy. In August 2024, Varun Kabra resigned as MD and Chairman and Neeraj Maheshwari was appointed Chairman & Managing Director for the 2024–29 term. In February 2026, Shubham Vinay Maheshwari stepped down as Non-Executive Director to study abroad. In June 2026 a postal ballot approved Palash Maheshwari’s appointment as a non-executive director — the same Palash who had resigned as a Whole Time Director back in July 2024. The family chairs do get re-arranged.
The FY26 results, audited by Kakaria and Associates LLP with an unmodified opinion, were approved on 30 May 2026. The board declined to recommend a dividend — consistent with a payout history that shows zeros stretching back several years.
3 — Business Model: WTF Do They Even Do?
Picture a company that decided diversification meant collecting unrelated low-margin businesses the way some people collect fridge magnets. Maheshwari does four things, and they share almost nothing except a balance sheet and a fondness for working capital.
Leg one: trading. The company imports coal, lignite and pet coke, runs them through a sorting facility at Vapi that separates by grade and size, and delivers to customers in Gujarat and Rajasthan. It is an authorised dealer of Nayara Energy for pet coke. Per Brickwork, the coal segment alone drives around 44% of revenue — which means nearly half this company’s fortunes ride on the price of a black rock it does not produce and cannot hedge.
Leg two: kraft paper. MLL manufactures recycled kraft paper at Ambethi, Gujarat, on a roughly 1-lakh-MT installed capacity, fed in part by a 4.5 MW captive power unit. The screener insights peg kraft-paper production in the 90,000–108,000 MT band in recent years. It is a genuinely integrated operation — backward into waste-paper collection, forward into the trade — in an industry Brickwork describes as fragmented with low entry barriers and no pricing power. Integration is nice; pricing power would be nicer.
Leg three: logistics. Full-truck-load freight across Gujarat, Rajasthan, Maharashtra, Karnataka and Kerala, run on a fleet the dump records at 114 owned vehicles plus 3,000–4,000 affiliated third-party trucks. Clients listed include ACC, UltraTech, Shah Paper Mills and Essar Ports.
Leg four: the Mahindra dealership, the newest tenant. Four businesses, one question — does running four mediocre-margin segments beat running one good one, or just spread the same thin spread across more invoices?
