Delhivery Ltd. reported significant growth and profitability in its Q2 FY26 earnings call. Express volumes increased by 32% year-over-year, and revenue from services reached ₹2,546 crores. The company completed the acquisition of Ecom Express, integrated its network, and saw improved margins across its business segments. Looking ahead, Delhivery is focused on continued growth, improving efficiency, and exploring new business opportunities.
Financial Performance Overview
Delhivery reported revenue from services of ₹2,546 crores for the quarter, demonstrating a year-over-year growth of approximately 16% and quarter-over-quarter growth of about 11%. EBITDA reached ₹150 crores, a substantial increase from ₹57 crores in Q2 of the previous year. The company reported a PAT of ₹59 crores, compared to 0.4% in the same quarter last year.
Express Parcel and PTL Segments
Express parcel shipments grew significantly, reaching 246 million shipments in the quarter, representing a 32.5% year-over-year increase. PTL demonstrated stable growth with 477K tons. PTL freight revenue grew 15% to ₹546 crores, with tonnage growing about 12%. The team has focused on expanding margins and ensuring profitable growth.
Ecom Express Integration
The acquisition of Ecom Express was completed in Q2. The revenue transition is largely completed, with net Ecom revenue for the quarter at ₹13 crores. The integration is progressing smoothly, with network rationalization complete and corporate overheads reduced by 85%. Integration costs were approximately ₹90 crores in Q2 and expected to remain between ₹100-110 crores over the next two quarters.
Operational Metrics and Key Initiatives
Delhivery’s PIN code reach remained consistent at 18,830. The number of active customers increased significantly, reaching approximately 48,000. The company has expanded its infrastructure to approximately 22.05 million square feet. Key initiatives include expanding supply chain services, exploring quick commerce, and focusing on improving profitability.
Margin and Growth Outlook
The company anticipates normalized express margins between 16% and 18%. Supply chain services have seen improved margins, scaling up from 7.2% to 12.8%. There are two new businesses on rapid commerce and Delhivery Direct with approximately ₹15 crores investment in the current quarter.
Source: BSE
