Delhivery FY26 Annual Earnings Summary
4 quarters covered · ₹10,508 Cr revenue · ₹153 Cr PAT · 6.1% 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.
Q1 FY26Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q2 FY26Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q2 FY26Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY26Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q4 FY26Risks flagged during the year
Large marketplaces like Meesho, Flipkart, and Amazon may increase in-house logistics, potentially reducing outsourced volumes to Delhivery.
Q1 FY26 · mediumIf first-party logistics arms expand into third-party services, they could increase price competition and pressure margins.
Q2 FY26 · mediumExpress parcel yield is a function of mix; a shift toward lower-weight parcels could reduce revenue per shipment, impacting margins.
Q2 FY26 · mediumEmployee expenses rose due to peak season hiring; if volume growth moderates, fixed costs could pressure margins.
Q2 FY26 · mediumPlatforms like Meesho's Valmo continue to build in-house logistics, potentially limiting Delhivery's market share gains.
Q3 FY26 · mediumA large e-commerce customer may increase captive logistics capacity, potentially reducing outsourced volumes to Delhivery.
Q3 FY26 · mediumDespite volume growth, PTL margins have been choppy around 10-11% due to capacity build-out ahead of demand and underutilized lanes.
Q4 FY26 · mediumRising diesel prices (INR 3/liter increase) may pressure margins if pass-through is incomplete, and could dampen e-commerce consumption.
Q4 FY26 · mediumSingle largest customer revenue share likely crossed 20% in FY26, up from 16% last year, posing concentration risk if volumes shift.
Q1 FY26 · lowAverage weight per parcel declined double-digits due to growth in small parcels, pressuring yields despite stable pricing.
Q1 FY26 · lowRains and Operation Sindur disrupted Q1 PTL volumes; similar events could affect future quarters.
Q2 FY26 · lowWhile management expects costs below ₹300 crore, any delays in facility exits or contract terminations could increase integration expenses.
What changed through the year
Q1 FY26 · Express Parcel margins to remain in 16%-18% range
Management expects Express Parcel service EBITDA margins to stay within the normative 16%-18% range, with potential to exceed 18% in peak months.
Q1 FY26 · PTL margins to expand to 15%-18% at 600K-640K tonnes quarterly
PTL margins are expected to reach 15%-18% when quarterly tonnage reaches 600,000-640,000 tonnes, driven by operating leverage and pricing discipline.
Q1 FY26 · Supply chain services revenue target of INR 1,800-2,000 crore in 3 years
Management targets SCS revenue of INR 1,800-2,000 crore over three years, supported by a pipeline of over INR 1,000 crore.
Q1 FY26 · Ecom Express integration costs within INR 300 crore envelope
One-time integration costs for Ecom Express acquisition will be reported separately in Q2 and Q3, not exceeding the INR 300 crore estimate.
Q2 FY26 · Express parcel service EBITDA margin target of 16-18% over 24 months
Management reiterated the target of 16-18% service EBITDA margin for the express parcel business, with potential to exceed 18% if pricing benefits are retained.
Q2 FY26 · Integration costs materially below ₹300 crore envelope
Total integration costs for Ecom Express will be significantly lower than the original ₹300 crore estimate, with ₹90 crore incurred in Q2 and ₹100-110 crore expected over the next two quarters.
Q2 FY26 · PTL volume growth of ~20% for FY26
Despite H1 growth of 15%, management expects full-year PTL volume growth to be close to 20%, driven by strong October and Q4 seasonal peak.
Q2 FY26 · CapEx intensity to trend towards 4% long-term target
H1 FY26 CapEx intensity was 5.1% (down from 6.6% YoY), and management expects further improvement towards the 4% long-term goal.
Q3 FY26 · Express parcel volume growth of 15-20%
Management expects express parcel volumes to grow 15-20% annually, driven by market growth and share gains, even if insourcing persists.
Q3 FY26 · PTL margins to reach 16%+
PTL service EBITDA margins are expected to expand from 11% to 16%+ over time through network utilization and yield improvements.
Q3 FY26 · CapEx to decline to 4-4.5% of revenue
CapEx as a percentage of revenue is expected to decline to 4-4.5% over the medium term, though near-term decline may be slower due to vehicle investments.
Q3 FY26 · Ecom Express integration costs ~₹150-160 crore
Total integration costs for Ecom Express are expected to be around ₹150-160 crore, significantly lower than the original estimate of ₹300 crore.
Q4 FY26 · CapEx/revenue to decline to ~4%
Management expects capital intensity to continue declining from 4.7% to around 4% of revenue, driven by network utilization improvements.
Q4 FY26 · New initiatives investment of INR 130-160 crore in FY27
Delhivery plans to invest INR 130-160 crore in new businesses like Delhivery Direct (intracity on-demand logistics) and Rapid, targeting a INR 200 crore external GMV run rate.
Q4 FY26 · Supply Chain Solutions to remain margin accretive
SCS pipeline projects will meet internal hurdle rates and continue to be margin accretive, with disciplined client selection.
Q4 FY26 · Transport business ROIC can reach 25%+
CFO Vivek Pabari guided that steady-state ROIC for transport can exceed 25%, driven by margin expansion to 10%+ adjusted EBITDA and capital intensity reduction.