Allcargo Logistics Limited (ALLCARGO) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the All Cargo Logistics Limited Q1-FI27 earnings conference call. As a reminder, all participant lines will be in the listener-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Shuiya Saman from Stellar IR Advisors. Thank you, and over to you, sir.

Thank you, Steve. Good afternoon, everyone, and thank you for joining us today. We have with us the Senior Management Team of All Cargo Logistics Limited, Mr. Ketan Kulpani, Managing Director and Chief Executive Officer, Mr. Deepak Parek, Chief Financial Officer, Mr. Sanjay Punjabi from Investor Relations. Additionally, today we have Mr. Puneet Mishra, President and Chief Business Officer from All Cargo Group. The management will be very updated and financial highlight for the quarter ended 30th September 2026, followed by a question and answer session. Please note, this call may contain some of the forward-looking statements which are completely based upon the company's beliefs, opinions, and expectations as of today. These statements are not a guarantee of the company's future performance and involve unforeseen risk and uncertainties. The company also undertakes no obligation to update any forward-looking statements to reflect the developments that occur after the statement is made. Before handing to the management, I would briefly introduce Mr. Puneet Mishra, President and Chief Business Officer at All Cargo Group. Mr. Puneet Mishra brings over three decades of leadership experience across the media, entertainment, and FMCG sectors. Prior to joining the All Cargo Group, he held leadership positions at Vee Entertainment Enterprises and Hindustan Unilever. With that, I would like to hand over the conference to Mr. Puneet Misha. Thank you, and over to you, sir.

Thank you, Suyash. Good afternoon, everyone, and thank you for joining us today. Our results presentation and press release have been uploaded on the website and in exchanges, and hope everyone has had the opportunity to go through the same. As we begin FY27, our approach to scale all cargo logistics rests on a very simple belief. It is simple, but not simplistic in the context of our understanding of what drives value for our customers. Not easy to execute every day with razor-sharp precision. And it is this. Promised service quality delivered drives volume, and when consistently delivered every day, it earns the right to command, the right yield, or the price. On the express logistics side, the focus is to deeply instill a service quality obsession in our teams across the value chain. Driven by the simple mantra of everyday great execution through brilliant basics. It's powered by our philosophy of one team, one goal. A philosophy that aligns every function across the value chain, empowered to deliver customer delight. This is not a slogan for us, but an operating discipline, and it's the foundation of everything else this business is being built upon. That simple systemic discipline is showing up in our numbers too. Our teams are energized by the victim, deliver the service, and deserve the volume. And this quarter, that has translated into a 6.7% year-on-year volume growth. Behind this simple thought, of course, is all the backend complexity of a customer segment-led approach to service delivery. Made simpler for execution by our significant investments in technology in the end-to-end value chain. And we are driving this volume growth very mindfully with customers who genuinely value our service proposition and quality of delivery and are happy to pay a fair price for it. On pricing, continuing with our customer-centric philosophy, we are equally deliberate. Our dictum within the team is deliver value, command value. We price on the strength of the service equation we bring to the table. That discipline has delivered a 6.4% year-on-year improvement in yield for the quarter. We are committed to this self-propelling loop of delivering consistent, high-quality customer service, consistently earning the right to win a higher share of their volumes, and deserving the right to command the price for this consistently delivered high-quality of service. This quarter's numbers are a testimony that our customers appreciate our beliefs and philosophy, and we thank them for it. It is these simple beliefs that are a source of inspiration and energy for our teams and people across the country, and we intend to build upon this energy and momentum. On the consultative logistics business, the story is equally consistent. The business is built on trust and retention, which is built by the consistent service delivery parameters delivered every day. We closed the quarter with service quality adherence of over 99%, and that consistency has led to a 98% customer retention rate. The retention rate is the best proof of the confidence that our customers have in us and in our execution quality. Backed by the power of our service consistency and customer trust, We have expanded our service footprint across diverse industry sectors, where existing clients have given us the opportunity to expand our business with them. Our operating philosophy in this business is deliver more from less. It's about delivering more to our customers from less, extracting more through high-quality process design, improved productivity, better space utilization, and technology and automation. This quarter, that discipline has delivered a 3% increase in revenue per square foot. So if I were to leave you with one thought, it would be this. Both businesses are being run against a clearly defined playbook, high quality customer service as the focal point, volume and customer commendation as the outcome, and high quality yield and profitable revenue as the reward for getting the first two right. We are managing both Express and Consultative Logistics businesses as two distinct players on the same underlying principle that discipline service execution is what earns the right to grow and grow profitably. With that, I hand over the call to our Managing Director, Mr. Ketan Kulkarni, who will share the details about the industry and our business performance.

Thank you, Puneet, very much for the very... Good afternoon, everyone, to you on the call, and thank you for your continued interest in all cargo logistics. I'm very happy and glad to be on the call once again with all of y'all. While the global macroeconomic environment continues to be shaped by geopolitical developments and economic uncertainty, India's domestic economy has remained resilient. And has become really the tailwind for the logistics industry. According to the IMF, India's economy is expected to grow by between 6% to 7%, supported, of course, by robust domestic demand and continued investments in the public and private sector. The strength of the economy is reflected in our key high-frequency indicators. E-way bill generation about 137 million in June, increasing 14.5% year-on-year, GST collections now nudging 2 lakh crore consistently with a 14% growth. Together with good consumption, the festive season around the corner, starting from September when the country will celebrate right into December, these indicators reinforce our confidence in continued movement. of shipments, goods, warehousing, supply chain activity, and hence, organized logistics. Against this backdrop, as we enter FY27, our strong growth momentum built over the activities of last year and the result in Q1 FY27 is to deliver a sharper focus on profit and sustainable The strategy is providing the best service, strengthening operational discipline, and driving structural cost efficiency. All this resulted in a consolidated revenue growth of 11.3% over the same period last year, and a reported pat of 15 crores as compared to the loss of Q1 FY26. The turnaround has been something that we at All Cargo Logistics are very happy and proud of. Equally important is the investment we continue to make in strengthening our leadership team with organization capabilities, not just in people, but in technology, in digitization, in infrastructure, and in automation. As our business evolves, the depth of our functions. And the depth of our capability will be the important differentiators. And we are differentiating more and more on that. The first quarter reflects encouraging progress on the strategic priorities. We see our playbook being perfectly executed by our teams. And that reinforces our belief of sustainable value creation going ahead further into the three quarters. Disciplined execution, operational excellence, and long-term customer partnerships will be the pivotal cornerstones of our execution strategy. Thank you very much. And with that, let me hand it over to our CFO, Deepak Parikh, for the financial performance of the product. Over to you, Deepak.

Good afternoon, everyone. Thank you, Ketan and Puli, for that start. I'm glad to be on the call with all of you today. So, the first quarter represents another step forward in our journey towards improving profitability while maintaining healthy growth momentum. On a consolidated basis, the revenue from operations for the quarter stood at Rs. 546 crore, registering growth of 11.2% year-on-year and 6.2% sequentially. This performance was supported by continued volume growth, improved pricing, and disciplined commercial execution across our business. Consolidated gross profit for QNF527. Stood at Rs. 163 crores, registering a growth of 11.6% year-on-year and 6% as compared to previous work. EBITDA for the same period stood at Rs. 71 crores, registering a growth of 39.2% over Q1FI26 and 18.9% over Q4FI26. This represents the operating leverage created through better execution, productivity, innovative, and focused improved business. I am happy to share that all cargo logistics has registered a profit after tax of Rs.15 crore as against the laws reported in Q1 FY26. The express logistics business delivered a strong operating performance during the quarter. Volumes increased 6.7% year-on-year to 312,000 tons, while realization per ton improved by 6.4%. The combination of healthy volume growth and better value realization resulted in excess revenues growing 13.5% year-on-year. We believe this reflects the benefits of our focus on service quality, customer engagement, and discipline pricing. With conservative logistics, although warehouse space under management remained stable, At 7.5 million square feet, revenues increased 6.1% year-on-year and 6.3% sequentially. This demonstrates our ability to generate better throughput and productivity from existing infrastructure, while continuing to strengthen customer relationships across multiple industry verticals. This improvement in our results reflects the continued focus we are making in strengthening the quality of earning and improving the profitability profile of the business. Looking ahead, our priorities remain unchanged. We will continue to invest in initiatives that enhance customer value and operational capabilities, maintain a disciplined approach to cost, And focus on delivering sustainable, profitable growth. So with that, we now open the floor for questions. Thank you, everyone.

Thank you, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touch-tone telephone. If you wish to withdraw yourself from the question queue, you may press star and 2. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Pritesh Chidda with Lucky Investment. Please go ahead.

Sir, can you share what are the margins in the express logistics business?

Yeah, I'm Deepak, let me take the question. Thanks. So, Express Logistics, we had a study growth in margin. If you see this quarter, both the yield effort and the volume growth has showed up the gross margin from the last year number of 26.3. 25.3 to 26.3. So, there is a 1% improvement in the gross margin of express business in this quarter.

Sir, I was looking for the operating margin.

That's the operating margin. I have referred to the call.

Operating margin? Your company level margin is 13% and I asked you specifically because... Thank you. I was looking for the EBITDA margin in express logistics.

I'll ask you the other question.

I'll just come back to you. Meanwhile, you can move.

Yeah, I'll ask the other question. So, just from a, you know, next, you know, 24 months or next two years perspective, as a business, what are your key priorities? What will be the capital allocation? And what are the, you know, larger goals that, you know, as a separate organization post-demerger now, have you set for this company? So, key priorities, you know, more 24-month goals, and the capital allocation policy. Because I think one business is capital light, and the other business is capital heavy. So, just wanted to check on that.

Hi. Ketan Kulkarni here. I will take, hello, the question on the key priorities, goals, and pass on the capital allocation. So the key priorities of the business as we demonstrated also in our performance is that number one, growth is a very, very key priority for us and that growth is formalized in a manner that we will grow faster than the market. So whatever logistics industry growth is, we will be at a percentage point above the logistics industry. That's the strive we have for growth. That growth will essentially be based on the three key pivots, which I said earlier, operations superiority, disciplined execution, and long-term customer partnerships. The goals are that we continue to improve our margins, the question that you had earlier put to Deepak, cross-operating margins, EBITDA margins, and profit margins. So we will only take businesses in the aspiration for growth, the businesses that bring value to these three parameters, and customers see us as long-term value partners. Over to Deepak on the Capex question.

Capital allocation. So, if you see our hubs and on the express side, we are well capitalized. There would be constant improvements to the existing infrastructure would be around 10 to 15 crore on the express business front. On the CL, the capital allocation is a function of new business and warehouse, addition of warehouse area under management. So, we see significant addition has happened in this Q1, followed by some retireal of area under management. So, that has got offset in terms of capex. However, on the overall amount, if you see, there will be around 20 crores on the CL front on the additional capex allocation. So that is the kind of investment which we will do in this year. And I would come back to your earlier question where you wanted an EBITDA margin breakup of 13% into both the businesses, which is Express and CL. So Express is at 6.2% and at CL, we are at, consultative logistics, we are at 29.6%. So that's the breakup you'll get, right?

My last question is on the express margins. So... You know, 6% is a fairly lower margin. So, where do we see this margin and are there any levers for these margins to expand?

So, the levers, which if I do a comparison on year-on-year basis, let's say from the Q1 last year to Q1 last quarter of Q4, so from last quarter, there is a 1% jump, I would say. So, the levers we have already... In terms of liver, price is a The yield enhancement is the biggest lever, which we have, and which we have effectively used it for a benefit from the Q4 last year and Q1, and steps are done in order to continue that. That growth of yield which will help us in enhancing the EBITDA margin here. Not to say what Ketan mentioned on the cost efficiency and operating efficiency that will also add a bit on overall improvement in this margin level.

So 3R is 10% or 3R is 7.5%?

3R is 10%. Okay.

And we are at 6% right now?

We are at 6.2%.

Thank you very much.

Thank you.

The next question comes from the line of Pratiti Khara with Param Capital. Please go ahead.

Hello. Hi. Am I out of this?

Yes, I am.

Can you please help me understand the other income of 14 growers? What does this consist of?

Yeah, hi, Deepak here. Yes, other income is a line item which you saw, 14 crore. It has three components. One is the liquidity interest which we get, that's the normal part. One exception is the lease closure, which has happened in this quarter. So that's one 8 crore amount, which is the other income component sitting here. Plus we have received some income refunds and there's an interest component of 2 crore on that. So 8 crore is one thing which is on account of lease closure, which has happened. That's the impact there.

So, 2 crores is refunds, and the remaining 4 crores is the liquidity interest, am I right?

Yeah, you're right, you're right. Normally, we have a number at around 5 crores, so that's 11 crores.

Also, our pre-NDS adjusted EBITDA comes to around 2.7% after adjusting for depreciation on ROU and least liability finance costs. Where do we see this number going ahead?

I have listed the number, so you are coming to an operating PBT number. So, I would go back to our plan, which we already shared with you, we are sticking to that plan. This year, the trajectory on this front is to be in the level of 5-6% and improve from there on.

Also, one last question. How was the industry growth rate when we look at logistics?

I'm sure you follow the logistics industry, and that generally grows at a factor of 1.2 to 1.5% of the GDP. Times, rather, and you know the GDP is slated to grow between 6% to 7%, so the logistics industry by that factor will be anywhere from Low in a low double digit range. So that's what we estimate. And within the industry, the breakup from 1.2 times to 1.5 times is essentially due to the various components of the industry like transportation, warehousing, express, B2C, e-commerce, which generally has much better growth rates than the other components. How about Express?

How has Express grown in the last quarter in the industry?

So, the Express growth would be at about low double-digit, and our Express performance, as I mentioned to you, is better than the industry.

Sure. Sounds good. Thank you.

Thank you.

The next question comes from the line of Chirag with Keynote Capital. Please go ahead.

Thank you for the opportunity and congratulations team. We are moving the decisions you have already let us know in the analysts' needs that we had a few times back. One thing I wanted to double check was that the gross margin numbers that we have mentioned for Q1 FY25 percentage. It was about 24% if I'm not wrong. So can you just check it once again?

So, which quarter you are mentioning at 24, Chirag?

So, as per your Q2FY26 presentation, express gross margin stood for Q1FY26 stood at 24%. You are saying that has improved to almost 24%.

Yes, so Chirag, I will just give you a backdrop of that. Q2, FY26, we didn't have the scheme effect because those were the all-carbogati numbers which we are looking at. What has happened now from Q3, FY26, Q4, FY26, and Q1, FY27, we have an impact of the merger which was affected from 1st November. So, the numbers of these two C quarters have been recasted, which includes the consecutive logistics business aggregation into the margin. So, the margin profile has come up to the trajectory of 30% from Q3, FI26 onwards. So that's the effect of merger which has happened. I think you are looking at pre-merger numbers.

Okay, no fair. Second thing I would like to know if you could give a bifurcation of KEN SME flight slash retail mix in express.

In the express, KEA, we have, I think, we have been disclosing that earlier. Now, I think we had done internally harmonization of all of this, I think. So, KEA continue to be in the proportion of 62% or 63%. Rest all is kind of strategic retail for us, yeah.

Yeah, and Ketan here, also the way every organization looks at what is KEA or strategic. It depends on the lens the organization will have in terms of its focus on the market, in terms of its geographic focus, strategic direction it needs to take with large customers. So, necessarily or unnecessarily, K is off. All cargo logistics would not be comparable to KEA of other logistics companies in the same space, and similarly for concentrated logistics. But nevertheless, as Deepak said, the KEA that we account for here are at about 60% of our revenue, retail at about 20%, and the balance is strategic. Got it.

No, it was earlier around 80-20, if I was not wrong, but I guess the hypercation has to be.

So that's what I said. We have reclassified our KEA and strategic accounts, depending on the market condition, how customers have moved from one category to another. So to give you a comparison on the last. What Deepak said will not be possible now, but what he defined to you is the new classification and the new outlooks that we have on our customers.

My next question is related to, if you can provide a bifurcation between air and road, which we used to give earlier, in Express also, in terms of sales and policies.

About 95% of our business is air, road, and about 5% is air.

Got it. Got it. And just last thing, sir, I just wanted to understand the increase in realisation that has took place, about 6.2% in experience. If you could bifurcate it between the escalation in prices and the pass-on prices related to legal.

Yeah, Chirag. I think that's been a big challenge. I think the pass-on of price increase has happened in the month of June. The impact of that will you see in Q2 further. Largely, in the first two months, April, May, it has been an escalation, which has been a natural escalation because of our improvement in service deliverables. That is the larger component. If you see the proportion from 6.3, you will not be able to break that into a number, but The escalation, natural escalation is a larger pie, which would be like 80%, and 20% would be around on the pass-through of diesel impact.

But also let me qualify Deepak's statement that all the impact from the diesel is passed through to the customer, because we have a transparent DPH, diesel price-height mechanism, that is also available on our website. So, it's a very transparent mechanism and all that, in fact, gets passed on to customers.

Thank you so much.

Thank you. Participants, if you wish to ask a question, you may press star and 1. The next question comes in the line of Advait Javkar with Equipoise Capital Limited. Please go ahead.

Yes, thank you. Thank you for the opportunity. So, correct me if I am wrong, as you mentioned, EBITDA margin is expected to reach around 13% of this financial year. Does that imply you expected EBITDA margin to improve by around 1% higher over the next three years?

That's right.

Yeah, so, yeah, okay, okay, thank you. The next question is about on the e-commerce and quick commerce. So, basically, these are the fastest growing segments. So, what is your strategy to increase all cargo's presence in this particular segment? And do you expect them to become the bigger contributor to the revenue over the next few years?

Very good question. As you know, our company runs two divisions. This is express and consultative logistics. On the consultative logistics side, we run a lot of thought centers, fulfillment centers for e-commerce and quick commerce companies, and it continues to be a very large vertical on the CL side of the business. Growing very, very strongly. We work with all the majors, domestic and multinational. On the express side, e-commerce entails last mile deliveries, which our competitors do. We do not do last mile deliveries for e-commerce or quick commerce. Does that answer you sufficiently or you would like more clarity?

I just want more clarity about the new customers we onboard, particularly for the e-commerce. So, what kind of business you are expecting from them? And if it is possible, just let me know about the revenue contribution you are expecting from them. In the next few years, what are your expectations from them?

Sure, sure. So as I told you earlier, e-commerce is a very large business vertical for us on the consultative logistics side. It is growing much stronger, growing as we expect, and we see that as a growth driver on the CL side of the business in the years ahead also.

Okay. So, which means, just correct me. So, in the next few years, your consultative logistics business will provide a larger revenue or will be equal as your express business.

Both the businesses, if you see our investor presentation, which we have uploaded, the trajectory for both businesses and the entire company has been in the public domain for some time, and that's the growth pattern we will replicate and ensure we deliver.

Oh, okay. Thank you.

Thank you. Ladies and gentlemen, if you wish to ask a question, you may press star and one. The next question comes from the line of

Ahmed Medha with Unify Capital. Please go ahead. Yeah, thanks for the opportunity. Am I heard of it? Yes, I heard of it.

Please go ahead. Yeah, so I've got two questions. Firstly, in terms of pricing improvement, realization improvement, which you've spoken about, and so can you give some sense what is driving that apart from the cost inflation?

Yeah, hi, man. So, yes, cost inflation was visible based on the fuel price increase which happened in mid-May sometime. So, the price improvement exercise is not the recent phenomenon we started last year itself pursuant to our service level improvements from November to December last year. And that has been a continuous approach in terms of dealing with large customers to price in our services. So, that was always there. To add to that, the cost inflation, which with the risk of cost inflation, we started from March onwards and that was actually a reality from May, June onwards, that has kind of helped us in ensuring that the EBITDA margin is enhanced because we were way ahead in taking this price action, price improvement and realization strategy. So, going ahead, inflation, we are mindful, it will continue, and the steadiness, what Ketan mentioned, that in terms of the diesel price increase to the pass-through with our customers and vendors, that is already insulated in the month of June, and going ahead, and this price improvement and realization exercise is showing up our EBITDA margin. As you saw in this first quarter, we'll continue in this Q2 also.

The question comes in, this is a very competitive industry as a whole, and we have seen sort of margins coming down for a lot of industry players over the last few years. What is enabling the industry in you to improve the pricing? What are the factors involved at the industry level? Or is it very company specific? And you can a little bit maybe give some granular understanding what is enabling the price improvement.

I will start and then I will ask Ketan to add on more insights actually. So if you see express and consultative logistics, I think the rising inflation one is from the fuel increase and also on the labor cost, there has been an inflation challenge which we have been facing in this quarter. Industry which we operate auto, pharma or heavy engineering equipment, you know, all our customers are mindful of our services. They value our service and logistics is an indispensable service actually. So, in terms of price push and price realization, that challenge is well accepted and it's a very essential requirement. So, though, and any cost push increase from, and it's very open market, you know what is the cost increase happens, some customers also face them. So, to that extent, the challenges are insulated, and there is a customer base which we see large key customers, and also on CL we have More or less, all large customers are there, international MNC customers, where they understand the ground challenges and the price push is well accepted, which includes the installation of the cost, cost inflation also.

Yes, I think Deepak covered it very well. I think price is always a factor of the value that you bring to the customer's business. And in that sense, because of our improving service quality, customer centricity, and the focus that we have had over the year and more, our business is so much dependent on two or three key areas. One is fuel, that is a transparent DPH mechanism. The people cost with minimum wages going across the country, that is also a pass-through mechanism. We deploy the annual GPI exercise. We charge for various value-added services that we do for the customer. So all this kind of works in the back end with our data science team. Who study how the price moves, which verticals are impacted by the price, seeing in granularity, which customers on the CL side and much more granularity, which body pairs we operate on the express side of the business. So all this kind of sums up together and decides what price is very, very competitive. For the services we offer, and that's the one we are able to bring back to the business to make it much more profitable. Sure. I hope both of us have answered you to your satisfaction. Yeah, yeah, great, great.

Second question on the cost structure. If I go back last year's P&L, overall, OPEX was more or less. Steady rather down, which there also the cost control has been really great. So can you explain what are the key drivers that is enabling us to control the cost structure despite growing volumes at the pace you did in Q1?

Yeah, because efficiency is a regular exercise, as you know, logistics, we have, that's a very important element of EBITDA efficient. The focus has always been there to, if you talk on the efficiency on the express side, ensuring that the capacity is well utilized, you don't have vehicles which are running under capacity, also the lane network planning, all those exercises goes into, Also, the basket of our vendors, whether it is line haul, feeder drugs, or the ground operations, which you call as GA business partners and all. You need to have a load management factor planning done with them so that you get the efficiency of pricing addressed in your operations. Last year, we did the huge step in not only operating costs but also on the SG&A front, where on the administrative costs and other areas, we rationalized quite a bit of the cost elements. I would not go line by line, but I think broadly, those philosophies and the models which we already put in place, we are taking it in play as we go in this quarter also. Also on the consultative logistics front, labor cost, warehouse labor cost is a large component where also if you see with what Ketan mentioned about the minimum wage hike increase which kind of works as a pass through mechanism but within that also ensuring the productivity of your workforce in terms of handling of load and all that has been optimized or managed in a very With all those tech models, modules. To manage all of that has been very helpful in ensuring the cost control.

Third question was to understand the space and the management which you have in your consultative logistics. If I go by three quarters, it was about 8.4 million square feet, and that number has come off gradually over the last three quarters. Can you give some sense? Is there a deliberate intent to improve the quality of business? We lost some market share. How do you see the overall volume under the business changing over next few quarters in years?

So volume would not be impacted. So if you see the space, if you see Q1, S5, N6, we are at 1.5 million square space. We have also increased in this year to 8 million, which is actually 60,000 square. So that's one increase. What has happened in the month when we started this year, two large warehouses, we did action in terms of reducing the white space impact. So that was one deliberate attempt by us to reduce that white space as a cost. So that will again help in our EBITDA enhancement in this year, which has already helped. This has no impact on revenue generation capability or any further business enhancement. So consolidation has been always a thought process as Ketan mentioned in his opening and also Puneet covered it. Productivity as I covered earlier will also ensure the efficiency and also So, all of this will ensure that the existing space is fully swept out and we get more realization per square feet as we go in this current year.

Sure. Last, just a request from my side. Please make sure that you can share disclosures around the segmental breakup in terms of air surface. Also on, in terms of the EBITDA margins for both the business segments, and thirdly, if you can give the EBITDA bridge from pre-endest to post-endest. If you do a disclosure, then it's helpful to understand and analyze the business, which I believe were in the last few quarters. So, if you can do that, that will be helpful. Thank you so much, and all the rest.

Thank you, Emma.

The next question comes from the line of Anshul with MKGlobal. Please go ahead.

Hi, thank you for the opportunity. First, just needed a clarification. Did we mention that EBITDA margins in consultative logistics are around 29.5%?

Yes, that's right.

Sir, is... Has there been a sharp jump or spike in these margin levels or has the trajectory been similar? These seem slightly, or if not slightly, these seem higher than what probably some of our peers sort of suggest. So just wanted to get some sense as to whether these margins have sort of increased recently or have they trended in similar range.

You know, Anshul, the margin has been trading in a similar range from Q1, Q4 numbers, so there have been, I think, some around 1% kind of upward move, but these have been at this level of 28 to 29%.

Got it, sir. A question on strategy. Should we not be focusing on consultative logistics given the higher margins that this generates? I can see just about 30% revenue contribution and they're delivering almost 2x the absolute EBITDA that Express is currently sort of contributing. So shouldn't we focus far more on growing this side of the business?

Yeah, is that a statement or a question?

Questions, a question.

If it is a question, then my answer is very clear that both the businesses will get the relevant focus from the organization with a clearer focus in terms of revenue growth, which will be a tad faster than express on the CL side. And we will also balance the profitability.

Thank you, Ketan, sir. Just one question on the Express business. Most of our peers and us also have reported steady growth in volumes in Express. Is this... Is there a sort of shift towards organized players or there seems to be general buoyancy in the market for volume growth for express business?

With both the observations you had and give weightage to both, there is a shift towards organized players as the economy becomes more formalized. We are seeing that swing when we engage with customers. And apart from that, of course, the quarter has been good for Express. You've been seeing the results that other companies also have been putting out in the express space. So both with adequate weightage factors, as you kind of rightly said, both the things have happened.

Great. That's it from my side. Thank you so much for answering my questions.

Thank you. A reminder to all participants that you may press star and 1 to ask a question.

Thank you.

Ladies and gentlemen, that was the last question for today. I now hand the conference over to Mr. Ketan Kulkarni for closing comments.

Thank you. It was a very good conference, some very interesting questions, and I do hope I and Deepak were able to answer all of them to your satisfaction. Thank you very much. It was good, and as we had committed in the earlier quarters, we are committed to growing all cargo logistics in Q3, Q4, Q5, and promising a good FY27. Thank you very much for your interest in the organization. Have a good evening.

Thank you, everyone. Thank you.

Thank you. On behalf of All Cargo Logistics Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.