Delhivery Limited — Q3 FY25

First question, Sahil, more on the margins for the core express business. What should we think about the steady-state margins for this business, and how far are we from that number? And does anything change with one of the top operators sort of in-sourcing in terms of how you guys look at a steady-state margin?

My second question again is on margin, but more on the PTL side. Last two years, if you see, we had some solid improvement in the margin, but versus that last three quarters, we are not seeing a sharp improvement. So just wanted to understand the trend of margin improvement going ahead. Should it be gradual, or we should see a good bump up out there? And lastly, we just wanted to know a bit of an update in terms of how the D2C rapid commerce is scaling.

express parcel service EBITDA margin, not just being lower for this quarter, but also on nine-month basis, it seems that the operating leverage has played negatively given the volume growth has been muted in low single digit. Is this also driven by we becoming more heavier on our own share of the vehicles in the network?

On infra addition, has that been in line with our overall volume growth in the system, or we have built more spare capacity in the last nine months compared to the last year, which kind of allows us to go slower on capacity building for the next year as we grow revenues?

on PTL, what we can do to further accelerate growth in this business, or we should look at this as a 15%-20% volume growth business when the industry is barely growing at high single digit? Lastly, on the competition... what makes us believe that they would be required to take some pricing action which could favor us?

one fundamental question on our model, which is integrated in nature... what has also happened is Valmo has challenged that one way of working... their model would be more variabilized in nature... it raises questions on the entry barriers in this industry, right? So your thoughts on the same.

one more thing on externalization of, say, Valmo or ATS or Instacart. How do you see that? ... do you see that disrupting some bit of volumes?

If I look at your overall line haul expenses that you have on slide 18, it has come off YOY as a percentage of revenue. But you do mention that that's one of the major reasons why your margins in this segment is down like 500 basis points YOY. So I'm just wondering, you've been able to kind of manage these higher line haul expenses in other segments except this express segment.

on the PTL segment, I think after like six, seven quarters, we have seen first-time a sequential decline in volumes. I mean, when I look at some of your other peers, listed peers, they've also seen some kind of a pressure on volumes this quarter. Are you seeing some signs of difficulty there, especially in the SME segment in terms of the PTL?

During the last earnings call, you mentioned that roughly 78 million odd shipments happened in October. November and December seem stepped from that perspective, right? We were on a good trend in October, but it dipped quite sharply. Can you elaborate more on that? What happened? Was it just the overall e-commerce demand evaporating?

assuming that volume growth in the overall express business remains subdued, do we have levers to get back to 17%-20% margin range, or will it be a function of growth and thereby operating leverage in that? Second question is, why wait for price action from competition, and why we don't act as leaders and try to force consolidation?