Delhivery Q1 Results: Net Profit Plummets 65% YoY to Rs 32 Crore Despite 28% Revenue Growth

Delhivery’s latest financial results for Q1 FY27 reveal a complex landscape characterized by significant growth in revenue alongside a stark decline in net profit. The company’s net profit fell by 65% year-on-year to Rs 31.9 crore, down from Rs 91.1 crore in the same quarter last year. Despite this decline in profitability, revenue from operations exhibited a healthy 28% year-on-year increase, reaching Rs 2,930.7 crore compared to Rs 2,294 crore in Q1 FY26. This divergence highlights the ongoing pressure on margins due to rising operating costs amidst a challenging macroeconomic environment.

The underlying factors contributing to the financial performance include a 29% surge in total expenses, amounting to Rs 3,011.6 crore for the quarter. This rise is attributed to various elements, including labor cost increases driven by statutory revisions in multiple states and inflationary pressures from global crude prices, affecting both fuel and operational costs. Delhivery reported a decline in EBITDA by 4% to Rs 142.2 crore, resulting in an EBITDA margin that shrank to 4.9%, down from 6.5% in the prior year. Nevertheless, Service EBITDA remained relatively stable year-on-year at 13.1% in Q1 FY27, suggesting resilience in operational management despite external challenges.

In addressing these cost pressures, Delhivery has initiated pricing revisions across client contracts and activated fuel cost pass-through mechanisms, which are expected to be reflected in the upcoming quarter. The company has also taken proactive steps to ensure service quality amidst labor market volatility and geopolitical uncertainties, deploying additional staff and enhancing network capacity. Looking forward, Delhivery remains optimistic about maintaining its medium- and long-term margin expansion trajectory and anticipates offsetting input cost increases through strategic revenue growth initiatives in FY27.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova team.)