Delhivery Limited — Q1 FY26
Delhivery reported a strong Q1 FY26 with revenue from services at INR 2,294 crore (+6% YoY) and EBITDA margin expanding 200 bps YoY to 6.5%.
bullish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
79%Questions answered0Evaded / deflected12Questions auditedContradictedNumbers vs filing
Answered
High priority
Why did Express Parcel yield decline despite volume increase?
Asked by Sachin Salgaonkar, Bank of America
Management explained yield decline as mix-driven, not pricing, with specific detail on weight per parcel.
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Question
Express Parcel volumes have increased this quarter, but we did see the yield coming down. Is there a way to look at it that the incremental shipments which have come have largely come at a lower yield, or is there something else which is going on here?
Sahil Barua, CEO
Fundamentally, the drop in yield is a function of volume mix... there is a double-digit decline in the average weight per parcel... It's just an organic shrinkage in yield and has nothing to do with pricing.
Partial answer
High priority
What is the volume and margin impact from Ecom Express consolidation?
Asked by Sachin Salgaonkar, Bank of America
Management gave directional guidance but avoided quantifying exact volume or margin impact.
no specific volume number givendeferred to Q2 for full impact
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Question
After your Ecom Express consolidation, what impact should we see on the overall volumes of Delhivery? ... what could be the impact on yields and margins from current levels after the Express Parcel consolidation?
Sahil Barua, CEO
What you're seeing in Q1 is actually a very minimal impact of volume transition from Ecom Express to Delhivery... The real impact actually is in July... there's a very materially higher trend for July... Broadly speaking, we anticipate that margins will actually expand as volumes go up, and we'll easily be in the 16% - 18% range.
Partial answer
Medium priority
How does Quick Commerce create opportunity for PTL division?
Asked by Sachin Salgaonkar, Bank of America
Management described the opportunity qualitatively but did not quantify the upside.
no quantification provided
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Question
One sentence you guys mentioned was Quick Commerce has created a material opportunity for our PTL division in the immediate term. Again, would love to understand what you guys mean by that. Anyway, you could quantify the upside opportunity here.
Sahil Barua, CEO
The main opportunity that it creates is brands who work with big commerce companies... there's a large amount of B2B consignments that get shipped to both the mother warehouses of Rapid Commerce companies as well as the dark stores... It's actually been a pretty exciting part of the Part Truckload business over the last two or three quarters.
Answered
High priority
Has competitive intensity changed after Ecom Express acquisition?
Asked by Sachin Salgaonkar, Bank of America
Management directly addressed the change in competitive intensity and pricing discipline.
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Question
Since the acquisition of Ecom Express, are you seeing any change in terms of competitive intensity? ... Has anything changed in the near term since your acquisition, or does that continue to be the issue?
Sahil Barua, CEO
I think what we've seen is a reduction in the intensity of price competition... all of the contracts that we've negotiated with clients are at Delhivery pricing... The rational pricing has been cleaned out, at least out of what was the erstwhile Ecom Express network.
Answered
High priority
What percentage of Ecom Express volumes have been retained?
Asked by Vijay
Management gave a specific retention range, directly answering the question.
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Question
In last quarter, I think you said you were aiming to retain 30% of the volumes of Ecom Express... Do you have a sense of what was the volume of Ecom Express as it existed in April, for example, that you've retained?
Sahil Barua, CEO
We have retained significantly more than the 30% that was planned originally... we will be close to about perhaps somewhere in the 55% - 65% retained volume already, and this continues to rise month on month.
Partial answer
Medium priority
Is self-sourcing at horizontal players peaking as expected?
Asked by Vijay
Management discussed share gains but did not explicitly confirm whether self-sourcing is peaking.
no direct confirmation of peakingreframed to share gains
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Question
You also, last quarter, talked about your sense that self-sourcing at some of the other horizontal players was peaking. You expect that to continue to play through. Has that progressed along expected lines as you see players ramping up for the festive season ahead?
Sahil Barua, CEO
I think clearly we've retained more volume than we anticipated... we have gained share across all client types... the consolidation towards a quality partner who is reliable, that trend is also visible at the third marketplace.
Answered
Medium priority
What are the recurring costs from Ecom Express from Q2 onwards?
Asked by Vijay
Management clearly stated there are no recurring costs from Ecom Express.
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Question
If possible, if you could talk about what will be your recurring costs apart from the integration costs that you will incur, the recurring costs from Ecom Express from Q2 onwards?
Sahil Barua, CEO
In terms of recurring costs, there will be none, no further recurring costs, because as the volumes go up, it's as if we were expanding the Delhivery network itself.
Answered
High priority
What gives confidence in supply chain services reaching INR 1,800-2,000 crore revenue?
Asked by Sachin Dushan
Management provided pipeline numbers and conversion confidence, directly answering the question.
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Question
In your shareholder letter, you are talking about roughly INR 1,800 crore-INR 2,000 crore of revenue in three years... Can you talk about what is giving you the confidence that finally that business will see a sustained growth trajectory?
Sahil Barua, CEO
We've got probably close to about INR 300 crore of sort of broad supply chain mandates which are in various stages of conversion... we probably have more than INR 1,000 crore in the pipeline... Fairly confident that we'll get to the INR 1,800 crore, INR 2,000 crore in SCS.
Partial answer
Medium priority
Why is volume retention from Ecom Express higher than expected?
Asked by Sachin Dushan
Management attributed higher retention to conservative assumptions but did not pinpoint a specific change.
no specific reason givenattributed to conservative planning
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Question
When we were talking about 30% volume retention, you're expecting the Valmo sort of impact being there and a lot of volume going out. What has really changed there?
Sahil Barua, CEO
I think when we were evaluating the deal, it was our judicial responsibility to take a conservative view of the world... The reality of the market, however, is this... there's a flight to quality.
Answered
Medium priority
What changes in KPIs are expected with Ecom Express consolidation?
Asked by Suresh
Management provided specific expected changes in delivery centers and pin code reach.
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Question
If you can just give us a glimpse in terms of what are the changes we'd expect with Ecom Express consolidation. The key changes which you'd like to call out, that's one.
Ajith Pai, COO
The big change will really be one in the number of express delivery centers and partner centers. We're currently at about 4,500. My sense is you should see this number at probably close to about 4,750 - 4,800 by the end of the year.
Partial answer
High priority
What is Delhivery's market share in Express Parcel 3PL and where could it settle?
Asked by Suresh
Management gave a vague range and deferred, not providing a clear current or target share.
no specific current share givendeferred to future quarters
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Question
Within 3PL, your market share here today, even if it's a broad range, that's great. Where do you think this could settle at in, say, the next 12, 24 months?
Sahil Barua, CEO
Our market share has probably expanded by about 25% or so, possibly higher, but I'm not entirely sure. I think that will become clear. I'll give you a much better answer maybe end of Q2, Q3 when things stabilize a bit more.
Answered
High priority
Is PTL margin expansion to 15-18% dependent on volume growth?
Asked by Suresh
Management provided specific tonnage targets and margin drivers, directly answering the question.
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Question
Within this margin at 11%, would it be a fair conclusion to say that if volumes expand sequentially, then margins can only expand towards your guidance of 15 %- 18%?
Sahil Barua, CEO and Amit Agarwal, CFO
My sense is at about 1.5 times the size, we should be at those numbers... Roughly at close to about 600,000 tons... of quarterly load... These three things should comfortably give us a 7% uptick on margin.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| SCS revenue target INR 1,800-2,000 crore in three years | ₹1,900 cr | ₹2,294 cr | Understated vs filing |
| PTL margin target 16%-18% at 600,000 tons quarterly | 17% | 6.5% | Overstated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.