Logistics services provider Delhivery reported a 27.8% year-on-year increase in consolidated revenue from operations to Rs 2,931 crore for the first quarter of fiscal 2027, up from Rs 2,294 crore a year earlier, even as consolidated net profit fell 64.9% to Rs 31.9 crore from Rs 91 crore in the corresponding quarter of the previous year. The results reflect a company navigating rapid top-line expansion following a major acquisition alongside near-term margin pressure from integrating that acquisition's operations.
The comparison between the two periods is complicated by the consolidation of Ecom Express, which became a Delhivery subsidiary on July 18, 2025 and a wholly owned subsidiary in December, meaning the June-quarter revenue and cost base are not directly comparable to Q1 FY26 on a like-for-like organic basis. The company confirmed that total integration costs related to the Ecom Express acquisition concluded at Rs 165 crore, significantly below its initial guidance of Rs 300 crore — a signal that the costlier phase of integration may now be largely behind the company. Express parcel shipment volumes surged 55.2% year-on-year to 322 million shipments during the quarter, underscoring the scale gains from the combined network even as absorbing that additional volume weighed on near-term profitability.
In its shareholder letter, Delhivery cited a particularly challenging operating environment during the quarter, pointing to volatile labour availability linked to elections and climate disruptions, geopolitical uncertainty, and statutory changes to India's labour codes as key headwinds. Total expenses rose 29.4% to Rs 3,012 crore, outpacing revenue growth and directly compressing margins; EBITDA rose to Rs 214 crore with margin improving to 7.5%, even as adjusted EBITDA margin contracted slightly to 2.6% from 3.3% a year earlier due to higher fuel and labour input costs. Service EBITDA, a measure the company uses to track core operating profitability excluding one-off integration costs, remained comparatively stable at 13.1%.
Looking ahead, Delhivery is expanding its ecosystem horizontally through a Rs 50 crore investment in its newly RBI-registered non-banking financial company subsidiary, and plans to introduce more than 5,000 electric cargo vehicles in FY27 alongside fuel pass-through mechanisms designed to mitigate future input cost inflation. The company also highlighted new operational initiatives including SmartNDR, an AI-driven tool aimed at reducing failed deliveries, the Delhivery Maps platform, and new worker welfare programmes named Vishram and Abhayam. With Ecom Express integration costs now fully recognised and the associated one-time drag on margins largely complete, the quarter's results position Delhivery's management to argue that the pressure on reported profitability was transitional rather than structural — a case that will be tested in the coming quarters as the company seeks to translate its expanded scale into more consistent bottom-line growth.
