IT Integration Lifts Allcargo Logistics Margins to 30 percent

In Q3FY26, Allcargo Logistics completed the integration of its Express and Contract Logistics businesses and implemented Oracle Fusion accounting software, enabling unified operations across customers, warehousing infrastructure, transport assets, and technology platforms.

The yield-enhancement initiatives, on the back of the technology integration between various businesses, drove gross margin improvement to 30 percent. The Express Division also recorded the highest ever monthly revenue in December 2025. FE FUTECH speaks with Sanjay Khiyani, CIO, Allcargo Logistics.

Edited Excerpts

With the completion of the integration of ‘Allcargo Logistics Express’ and ‘Contract Logistics’ businesses, the company now operates as a unified domestic platform. Throw light on the hardware and software integration and the regulatory considerations involved ?

The integration was both operational and digital. On the hardware side, we standardised network infrastructure, scanning devices and warehouse systems across hubs to enable real-time data capture and visibility.

On the software side, the implementation of Oracle Fusion accounting software created a unified financial backbone across Express and Contract Logistics. We consolidated legacy systems, standardised master data and enabled seamless integration between Enterprise Resource Planning (ERP) and finance platforms through Application Programming Interface (APIs).

From a regulatory perspective, we ensured compliance with Indian Accounting Standards, GST norms and data governance requirements, with strong audit trails and role-based controls embedded into the system.

Our financial systems are deployed on a secure, cloud-first architecture, with certain operational layers in a hybrid model for performance optimisation. This ensures scalability, resilience and integration readiness.

What do you mean by platform readiness?

Platform readiness, for us, means the organisation is structurally and technologically prepared for scalable, profitable growth.

Post integration, we now operate on a unified domestic technology stack with a single financial backbone and integrated operational systems. This gives us end-to-end visibility from order booking and warehouse processing to transportation, delivery and billing. Earlier, insights were segmented across systems; today, real-time dashboards enable faster, and more informed decision-making.

It also improves scalability. We can onboard new customers and vendors, expand routes and scale Full Truck Load (FTL) operations without creating parallel technology structures. The modular, API enabled architecture allows seamless integration with customer ERPs, e-commerce platforms and partner systems.

In essence, platform readiness means we can grow volumes, expand services and enter new segments while maintaining service quality, governance and margin discipline.

How is IT and digital enabling yield enhancement?

Yield enhancement is being driven through deep data visibility and analytics-led decision-making.

By integrating Oracle Fusion with our operational platforms, we now track profitability at a much more granular level lane-wise, customer-wise and asset-wise. This enables us to identify underperforming routes, optimise pricing structures and improve load planning in near real time.

Digital tools support route optimisation, freight cost monitoring, billing accuracy and faster reconciliations, significantly reducing revenue leakages and manual errors. We also use analytics to measure cost-to-serve, improve asset utilisation and strengthen working capital cycles.

Importantly, finance and operations now operate on a single source of truth. This alignment allows us to proactively manage margins rather than review them retrospectively. The result is disciplined cost management, stronger gross margins and a structural shift toward margin-led growth.

Technology is no longer just an enabler of operations, it is a direct lever for profitability and strategic differentiation.