Mumbai-headquartered Allcargo Logistics is set to enter its next phase of growth after completion of the group’s restructuring, with a sharper focus on its domestic logistics businesses, improving operational efficiencies and long-term value creation. The company recently initiated a strategic leadership transition as it looks to turnaround the company and drive its growth agenda through 2030. Punit Misra, president and chief business officer at Allcargo Group, spoke to Benn Kochuveedan about the company’s growth strategy, the progress it achieved so far, its financial targets and future road map for 2030. Edited Excerpts:
The restructuring process that Allcargo group initiated in 2023 has led to creation of four focused listed businesses. How has been the progress so far been and what does this mean for investors and other stakeholders?
With the businesses now operating as four listed entities —Allcargo Global, Allcargo Logistics, Allcargo Terminals and TransIndia Real Estate — investors can better assess each company’s business model, growth potential and financial performance. The restructuring, completed with the listing of Allcargo Global in July 2026, has given investors better exposure to businesses with distinct growth drivers and value creation opportunities. For customers and other stakeholders, dedicated management teams can enable greater agility and stronger service delivery and customer engagement.
For Allcargo Logistics, which is the domestic express logistics arm, the restructuring has supported the turnaround of our domestic logistics business, with sharper focus on growth, returns and a digital-first approach. The integration of express and contract logistics has strengthened our ability to offer combined solutions, leveraging synergies across infrastructure, workforce and technology. We’re witnessing steady year-on-year volume growth and yield enhancement through improved customer centricity and service delivery.
Erstwhile Gati, acquired in 2020, has now been integrated into Allcargo Logistics ... The company also recently initiated a leadership realignment, with a new chairman and a managing director-designate coming in. Where does the business stand today?
The acquisition and the subsequent integration are in sync with our vision to strengthen domestic logistics business and emerge as an end-to-end logistics solutions provider. Post-restructuring, our domestic logistics operations have become more agile. Monetising non-core assets has also accelerated the turnaround and deepened our focus on the core logistics business.
The leadership realignment will strengthen strategic focus, drive efficiency and build on the progress made in the turnaround. We’re now well-positioned to utilise common capabilities, human capital and skill-sets, while further improving workforce management and operating efficiency.
What is the current business mix at Allcargo Logistics, and how do you see the contribution of express and contract logistics evolving over the next few years?
Express logistics is currently the larger of our two businesses and remains an important growth engine. We’ve a strong national network and are focused on improving network utilisation, service quality, customer retention and revenue realisation. Moreover, contract logistics is becoming an important contributor as we expand our customer-base and warehouse portfolio.
We’ve around 7.5 million sqft of warehousing footprint now, which we expect to increase to around 12 million sqft by 2030. Our focus is on increasing the volume as well as improving the quality of the volume through better yields, higher utilisation and stronger operating efficiency.
You have set revenue and margin targets. How close are you to achieving them and what is the growth ambition for Allcargo Logistics through 2030?
In Q1FY27, revenue grew 11.2% on-year to Rs 546 crore, while net profit stood at Rs 14 crore compared to a net loss of Rs 10 crore a year earlier.
Improving margins is a steady, multi-year journey, and we’ve already taken the express logistics operating margin to 6.2% in the June quarter. Our operating margin guidance for the full year is 7.5%, with an expectation to sniff at 10% by FY28 and a longer-term ambition of around 15% by FY30. There are three broad levers that will drive this improvement: pricing, productivity and operating leverage.
How are you ensuring that the improvement in growth and margins is sustainable?
The turnaround is being driven by multiple operating levers. We create value through service quality, customer retention, pricing discipline, network utilisation and operating efficiency. In addition, higher network utilisation helps us bring down the cost per shipment. We’ve created a virtuous cycle involving better service, stronger customer retention, higher utilisation and better revenue realisation.
Looking ahead, are there any new sectors or emerging opportunities that you are evaluating to enter?
Our immediate focus is on scaling our existing businesses. We see significant headroom with in express and contract logistics by improving our network, technology, customer proposition and operating efficiency. We always evaluate opportunities related to our existing capabilities with a sustainable value creation outlook.
