Delhivery FY25 Annual Earnings Summary
4 quarters covered · ₹8,930 Cr revenue · ₹162 Cr PAT · 4.2% average EBITDA margin.
Quarter-by-quarter progression
Management promises made during the year
Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q2 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q4 FY25Risks flagged during the year
Meesho's increasing self-logistics could reduce volumes for Delhivery, though management notes they are satisfied with current volumes and the strategy is fluid.
Q2 FY25 · mediumManagement acknowledged a real consumption slowdown affecting the e-commerce industry, which could pressure volume growth.
Q2 FY25 · mediumAnalysts raised concerns about insourcing by major marketplaces; management believes bulk of impact is behind but cannot rule out further shifts.
Q3 FY25 · mediumCompetitors may continue aggressive pricing to sustain volumes, delaying industry consolidation and pressuring Delhivery's margins.
Q3 FY25 · mediumOverall e-commerce industry growth has moderated, with express parcel volumes growing only 2.4% YoY, limiting operating leverage.
Q3 FY25 · mediumMarketplaces like Meesho have in-sourced volumes to their own logistics arms, reducing the addressable market for third-party players.
Q4 FY25 · mediumIntegration of Ecom Express may face challenges in facility consolidation, staff absorption, and volume retention, despite conservative assumptions.
Q4 FY25 · mediumDespite management's optimism, competitive pricing actions could continue to pressure Express Parcel margins, delaying recovery to 18% levels.
Q4 FY25 · mediumLargest customer still accounts for ~16% of revenue, posing a risk if that customer shifts volumes to captive logistics.
Q1 FY25 · lowCompetitors like Blue Dart may price aggressively in the D2C segment, but management believes their cost leadership and service quality provide a buffer.
Q1 FY25 · lowQuick commerce growth could shift volumes away from traditional e-commerce, but management views the impact as narrow and limited to specific categories.
Q2 FY25 · lowManagement noted the labor market is challenging and may continue to tighten, potentially impacting delivery costs and availability.
What changed through the year
Q1 FY25 · Express Parcel EBITDA margin to remain in 18-20% range
Management expects Express Parcel service EBITDA margins to stay stable at 18-20% in the short to medium term, with potential pricing benefits passed to customers to drive volume.
Q1 FY25 · PTL margins to converge with Express over time
Part Truckload margins are expected to reach Express-like levels (18%+) as scale benefits and cost advantages materialize, potentially even higher.
Q1 FY25 · Robust pipeline for Supply Chain Services
SCS has a strong pipeline across auto, electrical, and FMCG sectors, with anticipated solid growth going forward.
Q2 FY25 · Express service EBITDA margins to remain at 17-18%
Management expects express parcel service EBITDA margins to stay in the 17-18% range, with no structural change despite Q2 dip.
Q2 FY25 · CapEx intensity to reduce to ~6.5-6.7% of revenue in FY25, sub-6% in FY26
CapEx as a percentage of revenue is expected to be ~6.5-6.7% for FY25 and below 6% for FY26, driven by lower trucking CapEx.
Q2 FY25 · PTL margins to reach express-like levels (15-17%) as volumes grow
PTL service EBITDA margins are expected to improve from current ~3% to 15-17% over time as volumes scale, without yield improvements.
Q2 FY25 · Working capital days to improve by 1-2 days per year
Net working capital days are expected to reduce by 1-2 days annually over the next few years, driven by improvements in supply chain and cross-border businesses.
Q3 FY25 · Express service EBITDA margins to return to 17%-20% range
Management expects express parcel service EBITDA margins to normalize to 17%-20% as fleet cost pressures reverse and PTL growth improves line haul efficiency.
Q3 FY25 · PTL business to grow 25%-30% in FY26
Management targets 25%-30% volume growth in the Part Truckload business next financial year, driven by expansion in unorganized market.
Q3 FY25 · CapEx to be 5.6% of revenue or lower in FY25, trending to 3.5%-4% long-term
Capital expenditure as a percentage of revenue is expected to decline to 3.5%-4% over the long term, with no major capacity additions planned.
Q3 FY25 · Rapid commerce to add INR 80-100 crore revenue in FY26
The two-hour delivery service is expected to generate INR 80-100 crore in revenue next financial year, with 50 dark stores in top eight cities.
Q4 FY25 · CapEx intensity to decline to 3.5-4% of revenue
Management expects CapEx as a percentage of revenue to taper to 3.5-4% over the medium term, aided by automation assets from Ecom Express.
Q4 FY25 · PTL margins to reach normative levels similar to Express
PTL service EBITDA margins are expected to continue improving toward Express-like levels, with potential to exceed prior normative targets.
Q4 FY25 · Rapid commerce dark stores to reach 50 by end of FY26
Delhivery plans to expand its rapid commerce dark store network to 50 stores over the full fiscal year, with older stores approaching breakeven in Q2.
Q4 FY25 · Express Parcel margins to expand in FY26
Management anticipates Express Parcel service EBITDA margins will expand in fiscal 2026 as pricing pressure eases and volumes grow.