Delhivery shares rose 1.77% to ₹479.45 on Monday, August 10, following the company's Q1 FY27 earnings report showing revenue growth of 28% year-on-year to ₹2,931 crore. According to Business Standard, the positive market reaction came despite the company reporting a 64.95% decline in net profit due to higher freight costs. The stock has delivered nearly 12% gains to investors over the last three years since listing in May 2022, though it had lost 9.6% in the past month and traded flat over the last five sessions. The company's market capitalization stood at ₹26,035 crore as of Monday's trading session, with shares having delivered nearly 2% returns in a year and 12.5% in three years.
Delhivery delivered mixed results for Q1 FY27, with revenue rising 27.8% year-on-year and 2.8% quarter-on-quarter to ₹2,931 crore compared to ₹2,294 crore in the corresponding quarter of the previous fiscal. However, net profit declined dramatically by 64.95% year-on-year and 55% quarter-on-quarter to ₹32 crore from ₹91 crore in the corresponding quarter of the previous fiscal. The company's EBITDA stood at ₹156 crore with an EBITDA margin of 5.3% in Q1 FY27, compared to ₹142.2 crore and 4.9% margin in Q1 FY26. According to Business Standard, profit before exceptional items stood at ₹33 crore, down 66.0% year-on-year and 41.1% quarter-on-quarter. Adjusted PAT stood at ₹62 crore before accounting for Ecom integration costs, with total expenses rising 29.4% YoY to ₹3,012 crore in the quarter ended June 30, 2026.
The quarter's financial performance was significantly impacted by the acquisition of Ecom Express for ₹1,369.64 crore, which became a Delhivery subsidiary on July 18, 2025 and a wholly owned subsidiary in December. As reported by Business Standard, Ecom Express contributed ₹1,042 crore in goodwill to the consolidated results, with the acquisition recognizing customer relationships of ₹104.7 crore, brand value of ₹20.5 crore, and goodwill of ₹1,041.75 crore. This acquisition means the June-quarter revenue and cost base are not directly comparable with Q1FY26 on a like-for-like basis, with the filing not providing separate Ecom revenue or profit contribution figures for Q1FY27. The company operates as a single business segment covering warehousing, last-mile logistics, logistics-management systems, supply-chain consulting and inbound support, with operations predominantly in India and serving more than 43,000 active customers as of the quarter ended June 2026.
Despite the profit decline, Delhivery demonstrated robust operational performance with express parcel volumes reaching 322 million shipments in Q1 FY27, marking a 55% year-on-year increase. The company's Part Truck Load (PTL) volumes rose 18% year-on-year to 542,000 metric tonnes during the quarter, as reported by Business Standard. This strong volume growth indicates the company's ability to capture market share and expand its logistics network effectively. The entire quarterly profit was attributable to owners of the parent, with no amount attributed to non-controlling interests, and profit before tax fell 66.3% to ₹30.25 crore from ₹89.68 crore in the previous year.
Despite cost pressures from higher labour and fuel expenses, Delhivery has implemented a strategic pricing revision approach to offset input cost increases. The company started revising pricing across client contracts to offset the higher input costs and expects the process to continue through Q2FY27. Notably, Service EBITDA remained broadly stable year-on-year at 13.1% in Q1FY27, compared with 13.0% in Q1FY26, as reported by The Economic Times. The company expects margin recovery from Q2 as fuel pass-through now covers 97-98% of contracts with wage inflation led repricing underway. Freight, handling and servicing costs rose 31.4% to ₹2,152.16 crore, while employee-benefit expenses increased 21.6% to ₹428.96 crore during the quarter. The surge in costs for the period under review has impacted margins and profitability, weighing down overall net profits in the June quarter of FY27.
Beyond operational performance, Delhivery launched several new initiatives during Q1 FY27, including SmartNDR, an AI-powered service aimed at helping e-commerce brands reduce return-to-origin rates and improve delivery outcomes. The company also commissioned an Automated Storage and Retrieval System at client warehouses and launched Delhivery Maps, an AI-native mapping suite for enterprises and developers. Delhivery established Vishram, a nationwide network of more than 1,000 rest stops for delivery personnel, and introduced Abhayam, a welfare programme offering insurance protection, income support, scholarships and other financial assistance to frontline workers. According to Business Standard, the company's cash balance stood at ₹4,677 crore at the end of Q1 FY27, providing a strong financial foundation for future growth initiatives.
