Delhivery Limited — Q2 FY25
Delhivery reported Q2 FY25 revenue of INR 2,190 crore (+13% YoY) and EBITDA of INR 57 crore (2.6% margin), with PAT of INR 10 crore.
neutral
medium
✓ 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.
92%Questions answered0Evaded / deflected12Questions auditedContradictedNumbers vs filing
Answered
High priority
Why express margins declined from 18% to 15% Q2 vs Q2?
Asked by Sachin Salgaonkar, Bank of America
Management explained the seasonal decline and quantified the capacity investment impact.
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Question
First question, Sahil, is on express margins. Even when we look from Q2 to Q2, margins have gone down from 18% to 15%. Can you help us understand what has happened and how should one look at a steady state margin going ahead?
Sahil Barua, Managing Director and CEO
If you look at the Service EBITDA margins for the express business, Q2 has come in at 15.1% versus 18.2% in Q1. But if you look at the previous financial year, Q1 to Q2 was 18.1% versus 16.8%. So there is typically a decline in the Service EBITDA margins in Q2 in the express business.
Partial answer
High priority
How much of express weakness is consumption vs insourcing?
Asked by Sachin Salgaonkar, Bank of America
Management gave directional view but did not quantify the split between consumption and insourcing.
no specific split givenqualitative only
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Question
How much of the weakness is perhaps on the back of consumption slowdown and how much because of an insourcing by an operator?
Sahil Barua, Managing Director and CEO
I think a large bulk of that has already been experienced in terms of the growth of Valmo... I think outsourcing has a relatively smaller sort of impact this year as compared to what it did last year. I think broadly on e-commerce, as we see it, there is an overhang from just consumption being softer overall.
Answered
High priority
Why express revenue growth only 3% despite earlier Diwali and strong October?
Asked by Aditya Bhartia, Investec India
Management explained the timing shift and seasonal patterns clearly.
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Question
This time around, we had an earlier Diwali, and despite that, we are looking at a 3% kind of revenue growth, while the numbers that you are sharing about for October are looking fairly encouraging, so how is it that the growth has been so muted entirely on account of consumption slowdown?
Sahil Barua, Managing Director and CEO
The Diwali comes in on the 26th of September overall, which is why a bulk of the growth that we see in volumes is sitting in October and not in the previous quarter. Q2 has generally been fairly flattish as compared to Q1. The real growth really comes in in Q3.
Answered
Medium priority
Why PTL margins stable despite good QoQ growth?
Asked by Gaurav Rateria, Morgan Stanley
Management explained the integrated network cost allocation.
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Question
The first question is on PTL margins. So I understand that capacity creation would have impacted margins in express parcel in Q2. But why, despite a good quarter-on-quarter growth rate, PTL margins have remained stable quarter on quarter?
Sahil Barua, Managing Director and CEO
The PTL shares the network with express and heavy as well. When capacity is expanded for the network, capacity is expanded overall for the entire network as a whole. And so PTL has to bear some of the costs of expanding the network for express and heavy.
Answered
High priority
Is express margin YoY decline due to timing of capacity investments?
Asked by Gaurav Rateria, Morgan Stanley
Management confirmed the timing shift and added another factor.
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Question
Is that decline primarily because last year the capacity creation investments were more around 3Q, and this time it is more around 2Q? Is that a reason why the margins on a YoY look down for express parcel?
Sahil Barua, Managing Director and CEO
On express margins, year on year, the largest impact is fundamentally because of the capacity expansion for the peak period. There's also one smaller factor... airlines had introduced a specific surcharge in the period of September and October for air freight.
Answered
High priority
What drives confidence that customer-specific impact is stabilized?
Asked by Gaurav Rateria, Morgan Stanley
Management provided qualitative reasoning for stability.
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Question
You sounded very confident that this is stabilized. What drives that confidence?
Sahil Barua, Managing Director and CEO
Delhivery is the lowest cost player in this space, and our Delhivery outcomes are better. Having Delhivery as a strong third strategic partner is in the interest of every platform. It's not inimical to the interests of any of the three marketplaces.
Answered
Medium priority
Can corporate overheads be cut if express growth stays sub-10%?
Asked by Gaurav Rateria, Morgan Stanley
Management acknowledged possibility and highlighted past discipline.
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Question
If express parcel volume were to remain in sub-double digit, like 8%-10% growth, do you think that our corporate overheads are geared to kind of handle that kind of growth?
Sahil Barua, Managing Director and CEO
I think that would certainly be the case. In any case, corporate overhead is something, if you look at it, we've remained stable for nearly two years. We will continue to exercise the same judiciousness on corporate overheads.
Answered
Medium priority
What are the one-time provisions in supply chain and corporate overhead?
Asked by Achal Lohade, Nuvama Wealth
CFO provided specific amounts and explanations.
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Question
In terms of the one-time provisions, if you could elaborate a little bit in supply chain as well as the corporate overhead, it's a reverse of what you kind of hinted.
Amit Agarwal, CFO
One was in a supply chain services business where we took inventory adjustment of about INR 10 crore. The other part is the 21 crore reversal on account of oxygen concentrators that we had purchased during the COVID time.
Answered
Medium priority
What is the CapEx outlook for FY25 and FY26?
Asked by Achal Lohade, Nuvama Wealth
Management provided specific percentages and breakdown.
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Question
The CapEx, how do we look at for FY 2025 and 2026 and which areas of the business?
Sahil Barua and Amit Agarwal
CapEx for H1 would have come in at close to about 6.6% of revenue. We expect the entire year to come in at broadly about 6.5% to 6.6%, 6.7%. We should be in the sub-6% range for FY26 on the CapEx.
Partial answer
High priority
What is like-for-like growth excluding insourcing?
Asked by Achal Lohade, Nuvama Wealth
Management gave segment growth but not a single like-for-like figure.
no overall like-for-like number given
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Question
If we exclude the insourcing part, what is the like-for-like growth year to date if you could have that number, Amit?
Sahil Barua, Managing Director and CEO
Our SME business volumes year on year are up nearly 50%. And the D2C business will be up close to nearly about 20% on volume.
Answered
High priority
What differentiates Delhivery's PTL margins from peers making 10%+?
Asked by Jainam Shah, Accenture
Management explained growth vs margin trade-off and path to higher margins.
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Question
We are almost second or third largest company in terms of PTL, in terms of volumes. Whereas our margin are at still at 3% or something. So what differentiates us in terms of margin from other players who are making, let's say, 10% plus margin?
Sahil Barua, Managing Director and CEO
The difference between us and other players in this industry is our appetite for growth. We've grown 27% year on year in revenue terms. Were we to absolutely constrain the PTL network... reflecting the margins would not necessarily be very difficult.
Answered
Medium priority
Is express margin dip due to capacity under-utilization from low volume growth?
Asked by Sachin Dixit, JM Financial
Management clarified capacity investments are for PTL/heavy, not parcel.
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Question
If you look at H1, our volume growths are only 1%. Is it the reason for this dip? Could it be a lack of capacity utilization or basically de-utilization?
Sahil Barua, Managing Director and CEO
The incremental sort of investments that we have made from a capacity standpoint have been indexed more to the growth of the PTL business and to some extent the growth of our volumes in heavies. Actually speaking, the incremental investments on the parcel side have been very small.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Express service EBITDA margin Q2 15.1% vs Q1 18.2% | 15.1% | 2.6% | Overstated vs filing |
| Express service EBITDA margin Q2 FY24 16.8% | 16.8% | 2.6% | Overstated vs filing |
| October volume growth 30% | 30% | 13% | Overstated vs filing |
| PTL revenue growth 27% YoY | 27% | 13% | Overstated vs filing |
| PTL volume growth 23% YoY | 23% | 13% | Overstated vs filing |
| SME business volumes up nearly 50% YoY | 50% | 13% | Overstated vs filing |
| D2C business volumes up nearly 20% YoY | 20% | 13% | Overstated vs filing |
| Express service EBITDA margin range 17%-18% going forward | 18% | 2.6% | Overstated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.