DELHIVERY - Delhivery

📊 NSE: DELHIVERY 🏢 Miscellaneous 📅 Last Updated: 12/13/2025 21:28

💰 Financial Performance

Revenue Growth by Segment

In Q2 FY26, total revenue from services reached INR 2,546 Cr, growing 16.3% YoY. Segment performance was led by Express Parcel at INR 1,611 Cr (up 24% YoY), while Part Truckload (PTL) tonnage grew 11.8% YoY to 477K tons. Full Truckload (FTL) revenue was INR 150 Cr (down 5% YoY), Supply Chain Services (SCS) was INR 170 Cr (down 14% YoY due to calibrated contract exits), and Cross Border Services was INR 38 Cr (down 35% YoY).

Geographic Revenue Split

Not disclosed in available documents, though the company operates a pan-India network and provides cross-border services which contributed INR 38 Cr (1.5% of revenue) in Q2 FY26.

Profitability Margins

Profitability showed significant improvement with PAT margin turning positive to 2.2% (INR 59 Cr) in Q2 FY26 compared to 0.4% (INR 10 Cr) in Q2 FY25. This was driven by a shift in depreciation method from WDV to SLM and improved operating leverage as volumes increased.

EBITDA Margin

EBITDA margin expanded to 5.9% (INR 150 Cr) in Q2 FY26 from 2.6% (INR 57 Cr) in Q2 FY25, a 330 bps improvement. This was achieved through better network utilization and cost optimization measures despite peak-period investments.

Capital Expenditure

Capex intensity for H1 FY26 was 5.1% of revenue (approximately INR 246.8 Cr), down from 6.6% in H1 FY25. The company is targeting a long-term capex intensity of 4% to improve free cash flow.

Credit Rating & Borrowing

The company maintains a strong liquidity position with Cash and Cash Equivalents of INR 4,223 Cr as of September 30, 2025. Debt-Equity ratio is near zero (0.00 in FY25 vs 0.01 in FY24), indicating negligible borrowing costs.

⚙️ Operational Drivers

Raw Materials

As a logistics service provider, the primary cost drivers are Freight, Handling, and Servicing costs (73.1% of revenue) and Employee Benefit Expenses (15.4% of revenue).

Import Sources

Not applicable as a service company; however, logistics operations are dependent on fuel and vehicle availability across India.

Key Suppliers

Not specifically named, but the company utilizes a vast network of third-party truck owners and delivery partners.

Capacity Expansion

Express Parcel capacity handled 246 million shipments in Q2 FY26 (up 32.5% YoY). PTL capacity handled 477K tons. Expansion is driven by the acquisition of Ecom Express and increasing network directionality.

Raw Material Costs

Freight and handling costs were INR 6,534.8 Cr in FY25 (73% of revenue). These costs are managed through network optimization and increasing the share of wallet to reduce per-unit delivery costs.

Manufacturing Efficiency

Efficiency is measured by capacity utilization; the company is targeting 16-18% service EBITDA margins in PTL by improving network utilization and yield.

Logistics & Distribution

Distribution is the core business; Express Parcel shipments grew 32.5% YoY to 246 million in Q2 FY26, demonstrating high scalability of the distribution network.

📈 Strategic Growth

Expected Growth Rate

15-20%

Growth Strategy

Growth will be achieved through the integration of Ecom Express, gaining share of wallet from existing customers, and capturing volumes from 'self-logistics' arms of marketplaces that are seeking cost efficiency through 3PL outsourcing. The company also targets 16-18% margins in PTL within 24 months through yield improvements.

Products & Services

Express Parcel delivery, Part Truckload (PTL) freight, Full Truckload (FTL) shipping, Supply Chain Solutions (warehousing and inventory management), and Cross Border logistics.

Brand Portfolio

Delhivery, Delhivery Direct, Delhivery Rapid.

New Products/Services

Delhivery Direct and Rapid services are being scaled, currently at an annual run rate of INR 25-30 Cr, with potential to reach INR 1,000-1,500 Cr in the next few years.

Market Expansion

Focusing on increasing B2B share through PTL and SCS segments while consolidating the e-commerce 3PL market via the Ecom Express acquisition.

Market Share & Ranking

Delhivery is a leading 3PL player in India; the acquisition of Ecom Express further solidifies its #1 position in the e-commerce logistics space.

Strategic Alliances

Acquisition of Ecom Express to consolidate market share in the express parcel segment.

🌍 External Factors

Industry Trends

The industry is seeing a shift from in-house 'self-logistics' to professional 3PL providers as marketplaces focus on profitability. The market is expected to grow at 15-20% CAGR.

Competitive Landscape

Key competitors include Blue Dart, TCI Express, and Ecom Express (now being integrated). Competitive intensity is reducing due to industry consolidation.

Competitive Moat

Moat is built on massive network scale, high density of shipments (246M in a quarter), and a lower cost structure than competitors, which makes it difficult for new entrants to compete on price.

Macro Economic Sensitivity

Highly sensitive to e-commerce growth trends and overall GDP movement which dictates PTL and FTL freight demand.

Consumer Behavior

Shift toward festive season 'peak' buying increases volume volatility, requiring flexible labor and infrastructure scaling.

Geopolitical Risks

Global trade tensions could impact the Cross Border Services segment, which saw a 35% YoY revenue decline in Q2 FY26.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by SEBI Listing Regulations and Indian labor laws regarding delivery personnel. The company maintains an unmodified audit opinion.

Environmental Compliance

The company emphasizes 'environmental stewardship' and sustainable business practices in its Corporate Governance philosophy.

Taxation Policy Impact

Effective tax rate impacted by deferred tax assets; PAT turned positive in FY25 at INR 162.1 Cr.

Legal Contingencies

Recognized a fair value loss of INR 5.13 Cr on investment in Boxseat Ventures in FY25. No other major pending litigation values were specified in the provided text.