Allcargo's margin improves, but trails Services peer median
Revenue rose +1.65% QoQ as expenses grew +0.42%, while other income still supplied 37.5% of pre-tax profit.
Filed 04 Nov 2026, 00:03 IST · Allcargo Logistics Ltd (ALLCARGO)
Key takeaways
- Consolidated operating margin improved 1.05 percentage points QoQ to 14.05% as revenue grew faster than expenses.
- Consolidated net profit rose +28.57% QoQ to Rs 18 cr, helped by a 1.32-percentage-point fall in the tax rate.
- Operating margin was 6.36 percentage points below the 20.41% median for 38 Services peers that had reported.
Price around the results
Revenue growth outpaced costs in Q2FY27
Allcargo reported consolidated revenue of Rs 555 cr, up +1.65% QoQ, while expenses grew only +0.42% to Rs 477 cr. That operating leverage lifted operating profit +9.86% to Rs 78 cr and widened operating margin by 1.05 percentage points to 14.05%.
Lower depreciation and tax supported profit growth
Interest was unchanged QoQ at Rs 15 cr, while depreciation fell -5.88% to Rs 48 cr, helping pre-tax profit rise +26.32% to Rs 24 cr. The tax rate declined by 1.32 percentage points to 25.00%, supporting the +28.57% increase in net profit to Rs 18 cr. Other income contributed 37.5% of pre-tax profit, so reported earnings included a material non-operating component.
Margin remains below the Services peer median
The 14.05% operating margin was 6.36 percentage points below the 20.41% median among 38 Services peers that had reported the same quarter. The margin nevertheless improved from 13.00% in Q1FY27, marking sequential progress rather than a decline.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹555 cr | ₹546 cr | +1.65% |
| Other income | ₹9 cr | ₹14 cr | -35.71% |
| Expenses | ₹477 cr | ₹475 cr | +0.42% |
| Operating profit | ₹78 cr | ₹71 cr | +9.86% |
| Operating margin (%) | 14.05% | 13.00% | — |
| Interest | ₹15 cr | ₹15 cr | +0.00% |
| Depreciation | ₹48 cr | ₹51 cr | -5.88% |
| Profit before tax | ₹24 cr | ₹19 cr | +26.32% |
| Tax | ₹6 cr | ₹5 cr | +20.00% |
| Net profit | ₹18 cr | ₹14 cr | +28.57% |
| EPS (₹) | ₹0.11 | ₹0.09 | +22.22% |
Operating margin of 14.05% compares with a Services sector median of 20.41% across 38 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 14.05% in the next quarter.
- Whether revenue growth continues to exceed the +0.42% QoQ expense growth recorded in Q2FY27.
- Whether other income remains below the 37.5% share of pre-tax profit.