Mahindra Logistics Ltd is on track to turning its B2B Express business EBITDA positive during the current financial year as the company sharpens its focus on profitable growth, operational excellence and disciplined expansion across its logistics portfolio.
Speaking to analysts post the company’s Q1 FY27 results, Mahindra Logistics Managing Director and Chief Executive Officer Hemant Sikka said the company was entering its next phase of growth with a clear strategy centred on profitability rather than chasing scale.
“Our target is to become EBITDA positive in this year, and let me tell you that we are very confident of achieving this,” Sikka said.
Four strategic pillars for growth
According to Sikka, Mahindra Logistics is building its future around four strategic priorities aimed at strengthening its leadership position in India’s rapidly evolving logistics sector.
These include scaling up its third-party logistics (3PL) business, turning around the B2B Express business, driving operational excellence and expanding in high-growth logistics segments.
“Our focus is firmly on building a stronger, more agile and future-ready Mahindra Logistics, one that consistently delivers profitable growth, superior customer experience and sustainable value creation,” he said.
3PL remains the growth engine
Contract logistics continues to be the company’s core business and the primary driver of future growth.
Mahindra Logistics plans to strengthen its 3PL franchise by deepening customer relationships, offering sector-specific solutions and expanding its presence in high-growth consumption sectors.
The company intends to maintain a strong focus on margins, return on capital employed and operational discipline while pursuing expansion.
B2B Express turnaround gathers momentum
The turnaround of the B2B Express business remains one of the company’s top priorities.
Mahindra Logistics is focusing on network optimisation, tighter cost management and improved service reliability to restore profitability and create long-term shareholder value.
Sikka said these measures are laying the foundation for a sustainable and profitable B2B Express business.
Operational excellence at the core
Operational excellence continues to be embedded across the organisation rather than being a short-term initiative, Sikka said.
Through process standardisation, disciplined execution and continuous productivity improvements, the company aims to enhance customer experience while consistently delivering superior service levels.
The emphasis on execution, he added, is expected to improve efficiency across the company’s integrated logistics network.
‘Intelligent scale’ over aggressive expansion
Mahindra Logistics also continues to benefit from the rapid growth of India’s e-commerce and quick commerce sectors.
However, Sikka stressed that the company is not pursuing expansion at any cost.
“Our objective is not to scale for the sake of scale only. Our objective is to go for intelligent scale, where every customer, every contract and every investment contribute meaningfully to our long-term profitable growth,” he said.
The strategy reflects a shift towards higher-quality revenues instead of chasing market share through low-margin business.
Warehouse utilisation improves
The company is also making significant progress in reducing unutilised warehouse space.
Sikka said Mahindra Logistics remains firmly on track to reduce its warehouse “white space” by 95% by September 2026, compared with the 1.6 million square feet of vacant warehousing capacity identified in the first quarter of the previous financial year.
Better warehouse utilisation is expected to improve operational efficiency and support profitability.