Delhivery Management Guidance Tracker

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.

Part Truckload margins are expected to reach Express-like levels (18%+) as scale benefits and cost advantages materialize, potentially even higher.

Management expects express parcel service EBITDA margins to stay in the 17-18% range, with no structural change despite Q2 dip.

PTL service EBITDA margins are expected to improve from current ~3% to 15-17% over time as volumes scale, without yield improvements.

Management expects express parcel service EBITDA margins to normalize to 17%-20% as fleet cost pressures reverse and PTL growth improves line haul efficiency.

PTL service EBITDA margins are expected to continue improving toward Express-like levels, with potential to exceed prior normative targets.

Management anticipates Express Parcel service EBITDA margins will expand in fiscal 2026 as pricing pressure eases and volumes grow.

Management expects Express Parcel service EBITDA margins to stay within the normative 16%-18% range, with potential to exceed 18% in peak months.

PTL margins are expected to reach 15%-18% when quarterly tonnage reaches 600,000-640,000 tonnes, driven by operating leverage and pricing discipline.

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.

PTL service EBITDA margins are expected to expand from 11% to 16%+ over time through network utilization and yield improvements.

SCS pipeline projects will meet internal hurdle rates and continue to be margin accretive, with disciplined client selection.

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.

SCS has a strong pipeline across auto, electrical, and FMCG sectors, with anticipated solid growth going forward.

Management targets 25%-30% volume growth in the Part Truckload business next financial year, driven by expansion in unorganized market.

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.

Management expects express parcel volumes to grow 15-20% annually, driven by market growth and share gains, even if insourcing persists.

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.

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.

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.

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.

H1 FY26 CapEx intensity was 5.1% (down from 6.6% YoY), and management expects further improvement towards the 4% long-term goal.

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.

Management expects capital intensity to continue declining from 4.7% to around 4% of revenue, driven by network utilization improvements.

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.

One-time integration costs for Ecom Express acquisition will be reported separately in Q2 and Q3, not exceeding the INR 300 crore estimate.

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.

Total integration costs for Ecom Express are expected to be around ₹150-160 crore, significantly lower than the original estimate of ₹300 crore.

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.

Management targets SCS revenue of INR 1,800-2,000 crore over three years, supported by a pipeline of over INR 1,000 crore.

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.