Delhivery Limited — Q3 FY26
Delhivery delivered a record Q3 with revenue of ₹2,798 crore (+18% YoY) and adjusted EBITDA of ₹234 crore (8.4% margin).
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.
71%Questions answered1Evaded / deflected12Questions auditedContradictedNumbers vs filing
Partial answer
High priority
How high can express parcel margins go from steady state?
Asked by Sachin Salgaonkar, Bank of America
Gave a range but no precise target; deferred to past performance.
no specific target givenqualitative range only
Read the exchange
Question
But specifically from an express point of view, any color you could go in terms of how high this margin could go from a steady state point of view?
Sahil Barua, CEO and Managing Director
How far can margins expand? ... the network has stably operated up to, you know, 22%-23% margins as well in the past. Beyond that, of course, we can expand margins, but that usually comes at the cost of some service quality in some locations.
Answered
High priority
Pricing power in express industry and yield outlook?
Asked by Sachin Salgaonkar, Bank of America
Clearly stated yield retention and no cuts; addressed pricing power concept.
Read the exchange
Question
Second question is on the pricing power in the express industry. ... should we continue to see a yield increase in the market going ahead?
Sahil Barua, CEO and Managing Director
We will retain yields where they are. ... our competitors do not make money at this price. ... Will you see deep cuts in yield? No, not necessarily.
Answered
Medium priority
How long will investments in rapid commerce continue?
Asked by Sachin Salgaonkar, Bank of America
Provided a specific investment range and timeframe.
Read the exchange
Question
And last question is: How long should we see investments into new services like Rapid commerce? And any number you could give in terms of the kind of investments you guys are looking to make out here.
Sahil Barua, CEO and Managing Director
My sense is that at this stage, our annual investments will be in the range of INR 60 crores-INR 70 crores a year or so, but that really depends on what our expansion plan is gonna be.
Partial answer
High priority
Can express margins cross past peak of 24-25%?
Asked by Sachin Salgaonkar, Bank of America
Acknowledged possibility but gave no specific guidance; deferred.
no commitmentdeferred to future
Read the exchange
Question
This is on express margins, where you did mention at 24%-25% was the peak margin in the past. ... should we see the crossing of that peak at some point and room to increase beyond 24%-25% as well?
Sahil Barua, CEO and Managing Director
Could the network operate stabler, sort of margins above that range? Yes, it could, actually. ... Can the network perform at 22%, 23%, 24% margins? Absolutely. ... can we go beyond that? I think let's see.
Answered
High priority
Sustainability of numbers and potential retracing from outperformance?
Asked by Sachin Dixit
Directly stated margins are sustainable and not volume-dependent.
Read the exchange
Question
So my first question is on basically some of the sustainability of numbers delivered this quarter, right? ... could we see recovering, some retracing of that happening?
Sahil Barua, CEO and Managing Director
Look, I have said this many, many, many times over the years, our margins are sustainable. They do not depend on variations in volume, right?
Partial answer
Medium priority
Where were you positively surprised on Ecom integration costs?
Asked by Sachin Dixit
Gave general reasons but no detailed breakdown of savings.
no specific breakdowngeneral statement
Read the exchange
Question
Obviously, we did highlight INR 300 crore of potential cost on that side. Looks like now we are going to wind up at roughly half of that number. If you can also highlight where all were you positively surprised in terms of seeing a lower integration cost.
Sahil Barua, CEO and Managing Director
I suppose we are positively surprised by everything. ... we have been able to shut down facilities earlier than originally thought. ... integration costs have been much lower.
Partial answer
Medium priority
Has supply chain services bottomed out for growth?
Asked by Sachin Dixit
Expressed optimism but not a firm commitment.
hedged with 'I'd like to think so'
Read the exchange
Question
So do we finally see that the bottoming out has happened, and we have a sustainable path to growth in this business?
Sahil Barua, CEO and Managing Director
I'd like to think so. ... I do think this is perhaps sort of the low end, of supply chain services from a growth standpoint.
Answered
Medium priority
Is CapEx comment towards mid-mile infrastructure in e-commerce?
Asked by Vijit Jain, Citi
Clearly stated mid-mile CapEx is for PTL, not e-commerce.
Read the exchange
Question
So, my question is, is the comment on CapEx also towards mid-mile infrastructure, specifically in e-commerce?
Sahil Barua, CEO and Managing Director
In the mid-mile facilities, e-commerce growth doesn't really compute, you know, in terms of tonnage handled. ... really, the mid-mile CapEx gets determined by PTL as opposed to, you know, anything to do with e-commerce.
Answered
High priority
Meaningful wallet share gains in PTL from existing customers?
Asked by Vijit Jain, Citi
Provided a split between existing and new client growth.
Read the exchange
Question
Should we expect meaningful wallet share gains with existing customers here as well? And in general, how would you split your revenue growth in PTL between new and existing customers?
Sahil Barua, CEO and Managing Director
My sense is share of wallet gain, plus, you know, sort of to some extent, you know, organic client growth would have contributed a little over half of the total growth that we've seen, and the rest of it would have come from new client acquisition.
Evasive
High priority
Segregate express parcel volume growth into organic/inorganic and market share gain?
Asked by Gaurav Rateria
Declined to provide the requested breakdown.
refused to segregatedismissed as immaterial
Read the exchange
Question
Would it be possible to segregate your volume growth into organic, inorganic? And within organic, how much is because of market growth and how much is because of market share gain?
Sahil Barua, CEO and Managing Director
In terms of parcel growth, segregating between organic and inorganic, et cetera, you know, to be perfectly honest, this is something we stopped bothering about in Q3. ... I don't think it's very material to think of it as either organic or inorganic.
Partial answer
High priority
Bridge for PTL margins from 11% to 16-18% range?
Asked by Gaurav Rateria
Listed levers but no specific quantification or timeline.
no quantified bridgequalitative only
Read the exchange
Question
My second question is on the bridge for PTL margins from 11% to 16%-18% range. ... just trying to list down the levers that will take you there.
Sahil Barua, CEO and Managing Director
In terms of bridge of PTL margins from 11%-16%, will continue to go up as utilization of the network goes up. ... yield will also continue to get, better.
Answered
High priority
At what adjusted EBITDA margin does Delhivery turn FCF positive?
Asked by Gaurav Rateria
Provided a specific EBITDA margin threshold for FCF breakeven.
Read the exchange
Question
And the last question is, on at what adjusted EBITDA margins you turn into free cash flow, from operations at the consolidated company level, in the medium term?
Vivek Pabari, CFO
Gaurav, and we are about 6%, we will be free cash flow breakeven. ... at 6% adjusted EBITDA, we're going to be free cash flow breakeven.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Express parcel margin 18.2%-18.3% in Q3 | 18.25% | 7% | Overstated vs filing |
| PTL revenue growth 25% in Q3 | 25% | 18% | Overstated vs filing |
| Express parcel volume growth 43% YoY | 43% | 18% | Overstated vs filing |
| FCF breakeven at 6% adjusted EBITDA margin | 6% | 7% | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.