Allcargo Logistics Slapped with ₹50 Lakh CCI Penalty Over Gati Acquisition

Allcargo Logistics disclosed Monday receiving a ₹50 lakh penalty from the Competition Commission of India (CCI) for alleged non-compliance during its acquisition of Gati-Kintetsu Express Private Limited. The regulatory action, communicated via CCI letter dated January 9, 2026 (Ref: M&A/2022/11/01(3)CD), targets violations of Section 6(2) of the Competition Act, 2002, mandating merger notifications.

The penalty coincides with Allcargo shares trading 1.45% lower at ₹10.91, near 52-week lows amid broader market weakness triggered by Iran unrest and rising crude prices. Shares opened at ₹11.07, hitting intraday low of ₹10.84 with subdued volume of 759,247 shares versus 4.78 million average.

Acquisition Context and Restructuring Timeline

CCI scrutiny centers on Allcargo’s stake purchase in Gati-Kintetsu Express, later renamed Gati Express & Supply Chain Private Limited on July 27, 2023. The target entity merged into Allcargo Logistics effective November 1, 2025, consolidating logistics operations under single entity. Section 43A penalty addresses failure to notify CCI prior to consummating the combination.

Penalty Parameters

• Amount: ₹50.00 lakh

• Authority: Competition Commission of India

• Legal Basis: Section 43A, Competition Act, 2002

• Violation: Section 6(2) notification lapse

• Communication: January 9, 2026

• Disclosure: January 10, 2026 (SEBI compliance)

Company Response and Financial Impact

Allcargo confirmed examining the order and pursuing “legally tenable steps” without disclosing appeals timeline. No additional sanctions, restrictions, or operational impacts identified beyond monetary penalty. The ₹50 lakh represents negligible 0.05% of ₹1,072 crore market capitalization.

Market and Strategic Context

Penalty disclosure exacerbates existing pressures on shares trading 76% below 52-week high of ₹45.67. Negative earnings trajectory yields -158x P/E ratio alongside recent Gati integration costs. Logistics sector faces freight volatility, US-India tariff uncertainties, and rupee depreciation toward 90.25/USD amid FII outflows.

Technical Trading Outlook

Immediate support at ₹10.84 (today’s low), psychological ₹10.00 floor. Resistance clusters ₹11.07 (previous close), ₹11.50 zone. Oversold RSI conditions potentially limit downside absent broader market breakdown. Nifty’s 25,669 open (-0.06%) provides relative stability.

Comparative Peer Performance

Allcargo underperforms peers reflecting company-specific regulatory overhang compounded by macroeconomic caution. Q3 earnings season and Union Budget infrastructure spending represent potential catalysts for sector recovery.

The penalty underscores intensifying regulatory scrutiny on logistics M&A transactions. Allcargo’s planned compliance steps and appeal prospects remain key monitorables alongside core business integration progress.