Delhivery’s Q1 Profit Plunges 65% Amid Rising Costs and Capacity Pressures
In a disappointing start to the new fiscal year, logistics major Delhivery has reported a 65% decline in its consolidated net profit for the June quarter of FY27. The company’s net profit slumped to ₹31.9 Cr from ₹91.1 Cr in the same quarter last year, and sequentially, it declined 56% from ₹72.3 Cr.
Revenue Growth Falls Short of Expectations
Despite a 28% increase in operating revenue to ₹2,930.7 Cr in the quarter under review, Delhivery’s top line declined 3% from ₹2,850 Cr on a quarter-on-quarter basis. The company’s total income for the quarter stood at ₹3,044.8 Cr, including other income of ₹114.1 Cr. However, total expenditure for the quarter rose 29% to ₹3,011.6 Cr from ₹2,326.6 Cr in the same quarter last year.
EBITDA Margins Under Pressure
Delhivery’s EBITDA for the quarter ended in June 2026 stood at ₹156 Cr, up 6.5% YoY from ₹149 Cr. However, service EBITDA remained largely stable at 13.1% in Q1 FY27 compared with 13% in the year-ago period. The company’s EBITDA margins are under pressure due to rising costs, including labour availability challenges, climate disruptions, higher fuel prices, and revisions to statutory minimum wages across four states.
Operational Challenges and Cost Pressures
Delhivery faced significant operational challenges and cost pressures in Q1 FY27, which impacted its profitability. The company deployed additional staff and network capacity to maintain service quality, while fuel price pass-through mechanisms and pricing revisions are expected to offset the impact of higher input costs over the coming quarters.
Investments in New Businesses and Technology
Despite the operational challenges, Delhivery has stepped up investments in new businesses, technology, and automation. The company has launched SmartNDR, an AI-powered solution for reducing return-to-origin rates, which has more than 500 subscribers by the end of Q1. It has also commissioned a 6,000-pallet automated storage and retrieval system and launched Delhivery Maps, an AI-native mapping platform built using data from more than 2 Bn shipments.
Growth in Express Parcel and PTL Volumes
Delhivery’s transport business comprises express parcel and part truckload (PTL) services. The company expects its express parcel volumes to grow 20-30% in FY27, after volumes rose 55% YoY in Q1 FY27, driven by market share gains among existing customers and new client additions across the D2C, SME, and consumer segments. PTL volumes grew 18% YoY in Q1 FY27, while revenue from the segment increased 24% YoY.
Board Approvals and Leadership Changes
Delhivery’s board has cleared several proposals, including an investment of up to ₹50 Cr in its NBFC arm Delhivery Financial Services Pvt Ltd (DFSPL) to fuel business and operational requirements of the subsidiary. The board has also reappointed Sahil Barua as the managing director and CEO and Kapil Bharati as executive director and CTO for a tenure of five years. Vani Venkatesh has been elevated to the role of deputy CEO from an earlier position of CBO and key managerial personnel (KMP).
Market Reaction
Shares of Delhivery ended Friday’s trading session 0.26% higher at ₹471.10 on the BSE. Despite the disappointing Q1 results, the company’s shares have shown resilience, and investors are likely to be watching the company’s progress closely in the coming quarters.