Mahindra Logistics is stepping up its focus on its third-party logistics (3PL) business, with the company targeting deeper customer integration, sector-specific solutions and stronger-margin offerings as it seeks to drive sustainable growth.
In his message to shareholders in the company’s Annual Report 2026, Mahindra Logistics Chairman Anish Shah said Contract Logistics continues to be the backbone of the company and remains central to its long-term growth strategy.
“Contract Logistics remains the backbone of Mahindra Logistics. In 2025-26, we strengthened our 3PL franchise through deeper customer integration, sector-led solutions, and selective expansion into the consumption-driven sector,” Shah said.
He noted that the company’s focus is increasingly shifting towards complexity-led offerings, longer-tenure customer relationships and structurally stronger margins, aligning growth with quality, predictability and profitability.
Express business reaches key milestone
Shah said the company’s Express Business crossed an important inflection point during FY26 by achieving gross margin positivity in the first half of the year, marking a significant milestone in its scale-up journey.
The next phase for the business will focus on converting these operational gains into sustained profit-after-tax (PAT) positive performance through profitable volume growth, network optimisation, tighter cost controls, improved service reliability and stronger commercial discipline.
While reaffirming Mahindra Logistics’ commitment to the segment, Shah said the company would continue to pursue growth within clearly defined financial guardrails to ensure accountability and long-term value creation.
Technology strengthens operational excellence
According to Shah, operational excellence has become embedded across the organisation’s businesses and decision-making processes, supported by technology-driven transformation.
He said technology continues to enhance visibility across operations, enable faster decision-making and improve productivity throughout the value chain.
“Our platforms are increasingly integral to how we differentiate, scale with discipline, and deliver consistent, high-quality outcomes for our customers,” he said.
Recovery lays foundation for future growth
Shah said FY26 marked a decisive transition from stabilisation to recovery after a challenging period marked by industry headwinds, business mix challenges and portfolio adjustments.
The company returned to consolidated profitability during the year after two years of losses, a development Shah attributed to deliberate and sustained actions taken across the business rather than cyclical tailwinds.
He said the recovery validates Mahindra Logistics’ strategy of prioritising disciplined and profitable growth over scale alone, providing a stronger foundation for future expansion.