Delhivery Limited , a leading logistics and supply chain services provider, has reported strong financial results for the quarter ended September 30, 2025, showcasing significant growth across key metrics and successful integration of its recent acquisition.

Financial Highlights

• Revenue from services reached Rs. 2,546.00 crores, marking a 16% year-over-year (YoY) growth and 11% quarter-over-quarter (QoQ) growth.
• EBITDA stood at Rs. 150.00 crores with a 5.9% margin, a substantial increase from Rs. 57.00 crores in the same quarter last year.
• Express parcel shipments grew by 32.5% YoY to 246 million shipments.
• Part Truckload (PTL) freight maintained steady growth at 477K tons.
• Adjusted EBITDA improved to Rs. 83.00 crores (3.3% margin) compared to Rs. 10.00 crores (0.5% margin) in Q2 FY25.
• Profit After Tax (PAT) reached Rs. 59.00 crores, a significant jump from Rs. 10.00 crores in the same quarter last year.

Operational Performance

Delhivery demonstrated strong operational performance during the quarter:

• Achieved a record peak dispatch of 7.2 million orders in a single day during the festive season.
• Crossed 100 million transportation orders in September.
• Express parcel margins stood at 15.3%, while PTL margins were at 8.5%.
• Supply chain services margins improved significantly to 12.8% from 7.2% in the previous quarter.

EcomExpress Acquisition and Integration

The company completed the acquisition of EcomExpress in July 2025 for Rs. 1,369.00 crores:

• Integration costs for the quarter were Rs. 90.00 crores, well within the original Rs. 300.00 crore estimate.
• The company expects total integration costs to be materially lower than the initially forecasted Rs. 300.00 crores.
• Network rationalization plan has been completed, with seven facilities retained, totaling 1.3 million square feet of area.

Market Position and Future Outlook

Sahil Barua, MD & CEO of Delhivery, commented on the company's market position:

"Post the EcomExpress acquisition, we're probably closer to somewhere between 27% and 30% market share. Excluding Amazon self-logistics and Flipkart self-logistics, our market share will be well over half of the market."

The company maintains a positive outlook:

• Service EBITDA margins are expected to be in the 16-18% range by the end of 2026.
• The PTL business is anticipated to reach 16-18% service EBITDA margins in the next 24 months.
• Delhivery is exploring new business opportunities, including rapid commerce and on-demand intracity services.

Financial Services Subsidiary

Delhivery has incorporated a new subsidiary, Delhivery Financial Services Private Limited, aimed at providing financial services to its network of truckers and partners. The company plans to offer services such as:

• Fastag and fuel services for truckers
• Commercial vehicle lending for partners to expand their fleets
• Assurance or protection against loss, damage, and delays within the Delhivery network

Conclusion

Delhivery's Q2 FY26 results demonstrate the company's strong growth trajectory and successful integration of EcomExpress. With improved margins across segments and strategic expansion into new services, Delhivery appears well-positioned to capitalize on the growing logistics market in India.

Investors should note that while the company has shown impressive growth, future performance may be influenced by factors such as market dynamics, competition, and overall economic conditions.

Shares of Delhivery experienced a significant drop of 6% to Rs 443.35 following the release of its September quarter results, which revealed a swing to a consolidated net loss. The logistics company also announced a leadership change in its finance department.

Q2 FY24 Financial Highlights

Despite the reported loss, Delhivery showcased strong operational performance in terms of shipment volumes:

Operational Metrics

The company attributed Rs 90.00 crore of its costs during the quarter to the integration of its recent Ecom Express acquisition.

Leadership Transition

In a significant management change, Delhivery announced a transition in its Chief Financial Officer role:

• Incoming CFO: Vivek Pabari
• Outgoing CFO: Amit Agarwal
• Effective Date: January 1, 2026
• Reason: Agarwal is stepping down for personal reasons after 13 years with the company

This leadership change comes at a crucial time as the company navigates through challenging market conditions and works on integrating its recent acquisition.

The market's reaction to Delhivery's quarterly results and the announced CFO transition reflects investor concerns about the company's short-term profitability. However, the growth in shipment volumes suggests that Delhivery continues to expand its market presence in the competitive logistics sector.

Investors and market analysts will likely keep a close watch on how the new CFO navigates the company's financial strategy, especially in light of the recent loss and ongoing integration costs. The company's ability to return to profitability while maintaining its growth trajectory will be key factors to monitor in the coming quarters.