Delhivery's Q1 net profit falls 65% YoY to ₹32cr
What's the story
Leading logistics company Delhivery has reported a 65% year-on-year drop in its net profit for the first quarter of FY27. The company's net profit stood at ₹31.9 crore, down from ₹91 crore during the same period last year. Despite the decline in profits, Delhivery's revenue from operations increased by an impressive 28% to ₹2,930.7 crore during the period under review.
Financial adjustments
EBITDA falls by 4%
Delhivery's EBITDA (earnings before interest, tax, depreciation and amortization) fell by 4% to ₹142.2 crore from ₹148.8 crore last year.
The company's total expenses increased by a whopping 29% year-on-year to ₹3,011.6 crore in Q1 FY27, compared to ₹2,326.6 crore during the same period last year and ₹2,853.1 crore in the previous quarter of FY26.
Operational hurdles
Results impacted by various factors
Delhivery's Q1 FY27 results were impacted by labor shortages amid elections and climate disruptions, geopolitical uncertainty, and changes to labor codes.
The company took additional measures such as deploying buffer staff and increasing network capacity to maintain service quality.
Rising fuel costs due to higher global crude prices in Q1 also contributed to increased operational costs for the company.
Strategic response
Pricing revisions across client contracts initiated
To mitigate the impact of rising input costs, Delhivery has started revising pricing across client contracts. The company expects this process to continue through Q2 FY27.
Despite these cost pressures, Service EBITDA remained stable year-on-year at 13.1% in Q1 FY27, compared with 13% in Q1 FY26.
Delhivery says its medium- and long-term margin expansion trajectory remains unchanged despite these challenges.