Results · Mobility & Logistics

Delhivery reports Q1 FY27 results with rising revenue and profit decline

By Startup Enthusiast · 10 August 2026

Date: 10 August 2026
Company: Delhivery
What it does: Logistics and supply chain services provider
Kind: Results
Sector: Mobility & Logistics

What they do

Delhivery provides logistics, supply chain, and cross-border delivery services for businesses across India and globally

What happened

The company reported a 27.8% rise in service revenue to ₹2,930.7 crore but saw net profit drop 65% to ₹31.9 crore due to higher expenses

Why it matters

Management raised full-year volume growth guidance for express parcels to 20-30% while announcing key executive appointments including a new deputy CEO

The details

Delhivery reported its Q1 FY27 financial results on 8 August 2026, showing strong top-line growth alongside margin pressures.
Service revenue increased by 27.8% year-on-year to reach ₹2,930.7 crore, driven by higher shipment volumes across its network.
Consolidated net profit fell sharply by 65% to ₹31.9 crore, compared to ₹91 crore in the same period last year.
Profit also dropped 55.9% sequentially from ₹72.4 crore in the previous quarter as total expenses rose by 29.4%.
Total expenses reached ₹3,011.6 crore, with freight, handling, and servicing costs accounting for 71.5% of the total spend.
The company's EBITDA margin contracted to approximately 4.9% from 6.5% in the prior year period.
Express parcel shipments surged by 55.2% to 322 million, while PTL freight tonnage grew by 18.4% to 542K MT.
Management cited volatile labor costs, geopolitical uncertainty, and statutory wage changes in several states as key pressure points.

The bigger picture

Cost pressures were exacerbated by election-related labor volatility and climate impacts on operations during the quarter.
The integration expenses for Ecom Express were fully absorbed in this quarter, impacting the bottom line.
Fuel cost pass-through mechanisms have been activated, with full benefits expected to materialize in Q2 FY27.
Domestic Institutional Investors (DII) increased their holding by 6.80 percentage points to 43.07% as of June 2026.

About the business

Delhivery operates an integrated logistics network offering express parcels, truckload freight, and supply chain solutions.
The Express Parcel segment handled 322 million shipments in Q1 FY27, demonstrating significant volume growth.
The PTL (Part Truck Load) segment moved 542K MT of freight, reflecting steady demand in the freight sector.
Delhivery Direct generated nearly ₹150 crore in GMV, ahead of its annual target of ₹250 crore.
Freight, handling, and servicing costs constitute the largest portion of expenses at 71.5% of the total.
Employee benefit expenses totaled ₹429 crore, reflecting the company's large operational workforce.
The company is expanding its financial services arm, having received an NBFC certificate from the RBI.
Service EBITDA margin remained stable at 13.1%, indicating core operational efficiency despite overall profit declines.
The business model relies heavily on volume growth and operational leverage to improve margins over time.

What happens next

Management aims for an Express Parcel EBITDA margin of 16% to 18% for FY27.
The PTL segment targets an exit margin of 15% to 15.5% for the fiscal year.
Full-year volume growth guidance for Express Parcels was raised to 20-30% from the earlier 15-20% range.
The company expects fuel cost benefits to fully impact the bottom line starting in Q2 FY27.

Founders

Sahil Barua, Managing Director and CEO
Ajith Pai, Former COO

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