Results: Mahindra Logistics Limited Delivered A Surprise Loss And Now Analysts Have New Forecasts

Shareholders might have noticed that Mahindra Logistics Limited (NSE:MAHLOG) filed its second-quarter result this time last week. The early response was not positive, with shares down 2.3% to ₹356 in the past week. It was a pretty negative result overall, with revenues of ₹17b missing analyst predictions by 2.0%. Worse, the business reported a statutory loss of ₹1.20 per share, a substantial decline on analyst expectations of a profit. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the most recent consensus for Mahindra Logistics from nine analysts is for revenues of ₹70.0b in 2026. If met, it would imply a decent 8.2% increase on its revenue over the past 12 months. Mahindra Logistics is also expected to turn profitable, with statutory earnings of ₹7.42 per share. In the lead-up to this report, the analysts had been modelling revenues of ₹70.0b and earnings per share (EPS) of ₹7.08 in 2026. So the consensus seems to have become somewhat more optimistic on Mahindra Logistics' earnings potential following these results.

Check out our latest analysis for Mahindra Logistics

The consensus price target rose 8.1% to ₹389, suggesting that higher earnings estimates flow through to the stock's valuation as well. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Mahindra Logistics analyst has a price target of ₹560 per share, while the most pessimistic values it at ₹279. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Mahindra Logistics' past performance and to peers in the same industry. It's clear from the latest estimates that Mahindra Logistics' rate of growth is expected to accelerate meaningfully, with the forecast 17% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 14% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 11% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Mahindra Logistics to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Mahindra Logistics' earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Mahindra Logistics analysts - going out to 2028, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for Mahindra Logistics (1 is concerning!) that you need to take into consideration.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.