Delhivery Limited — Q4 FY25
Delhivery reported a strong Q4 FY25 with revenue of INR 2,192 crore (+6% YoY) and EBITDA margin of 5.4%, expanding 320 bps YoY.
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 answered1Evaded / deflected12Questions auditedContradictedNumbers vs filing
Answered
High priority
Growth runway and operating efficiencies in PTL segment beyond yield.
Asked by Krupashankar
Management provided specific margin numbers and growth outlook without evasion.
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Question
I want to get you a sense, Sahil, on what is the growth runway you are expecting, given that we have reached a certain economies of scale. The second piece is while yield management, of course, has played a crucial role, can you talk a little bit more about the operating efficiencies which you achieved beyond operating leverage this quarter?
Sahil Barua, Managing Director and CEO
I think we see no reason to believe that our growth runway in PTL is going to be significantly different from what we've seen so far. ... the quarter four numbers which have come in at 10.8%, and we've brought up several times that as the business gets closer to about 175,000-200,000 tons of freight, we hit nearly full potential margins.
Partial answer
Medium priority
Fleet utilization levels QoQ.
Asked by Krupashankar
Gave a range but declined to provide a specific point estimate.
no precise number givenrefused point estimate
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Question
Sahil, what would be the fleet utilization levels at the moment in QOQ?
Sahil Barua, Managing Director and CEO
our utilization prior to Q3 was in the sort of 65% kind of range. Q4, on a similar comparable basis, would have gone beyond 70%. ... You'll have to excuse me for not giving you a highly specific point estimate.
Answered
High priority
Express Parcel margin profile and impact of Ecom Express integration.
Asked by Krupashankar
Addressed margin outlook and integration impact directly.
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Question
Express Parcel, the margin profile is hovering around 16%. Last year, we were close to about 18% or so. I just wanted to understand if this is going to be the new normal, at least over the near term, and probably you would see that the margin expansion would kick in when Ecom Express gets integrated.
Sahil Barua, Managing Director and CEO
As our network continues to fill up with the volumes that we retain, we do anticipate that there will be some expansion in overall margins. ... once we finish with the integration, we do anticipate that our net margins will go up.
Answered
High priority
Industry structure after Ecom Express acquisition.
Asked by Sachin Dixit, JM Financial
Provided clear view on competitive positioning and industry consolidation.
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Question
With Delhivery acquiring Ecom Express and some sort of market jitter being that Express Parcel is also not in a very good shape, how do you think PTL structure, industry structure evolves going forward?
Sahil Barua, Managing Director and CEO
Delhivery has always been more than 100% of the profit pool of this industry. ... our remaining competitors with models similar to Ecom Express have also seen an expansion in their losses in quarter four, which means our competitive positioning continues to be better.
Answered
Medium priority
Rapid commerce foray updates: dark stores, orders per day.
Asked by Sachin Dixit, JM Financial
Provided specific numbers on stores and orders.
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Question
Any updates on that? How is it shaping up? How many dark stores? Orders per dark store, etc.?
Ajith Pai, COO
We are on three cities as of this quarter and about 18 dark stores. ... the older dark stores are now clocking at about 350-400 orders per day, while the newer ones, of course, have a certain ramp-up time.
Answered
High priority
Breakdown of INR 300 crore integration cost for Ecom Express.
Asked by Vijit Jain, Citi
Clearly explained the two components of the integration cost.
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Question
Is this mostly payouts related to the locations you would shut down, etc., and those things? Or does it include the operating losses that the business will incur while you integrate?
Sahil Barua, Managing Director and CEO
It is a combination of two things. One of them is going to be the lease liabilities, which contain lock-ins. ... The second is, yes, you are right. ... there will be some operating losses that we had factored in.
Partial answer
High priority
Volume retention percentage from Ecom Express customers.
Asked by Vijit Jain, Citi
Gave initial estimate but deferred final answer pending approval.
deferred to futurecautious on definitive statement
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Question
your current assessment of what volume share, what percentage of their volume would you be able to retain?
Sahil Barua, Managing Director and CEO
Our estimation when we did the calculation of our consideration was that we would retain about 30% of the volumes within the core Ecom Express network. ... I think it's best to sort of make more definitive statements once we have the CCI approval.
Answered
High priority
Insourcing trend in Express Parcel and impact of Ecom acquisition.
Asked by Abhisek Banerjee, ICICI Securities
Confirmed share accrual and addressed insourcing trend directly.
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Question
How are you kind of looking at the insourcing trend right now? ... by you buying out Ecom Express, some of the capacity will be vanquished here, right? Would that not mean that a disproportionate kind of share has to come to you?
Sahil Barua, Managing Director and CEO
I do not really need to, Abhishek. You have answered your question. The reality is we do anticipate that we will accrue share. ... I think the worst from a self-logistics standpoint is behind us.
Answered
Medium priority
CapEx outlook given Ecom Express automation assets.
Asked by Abhisek Banerjee, ICICI Securities
Provided specific CapEx guidance and timeline.
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Question
Given you are talking about almost INR 170 crore of automation CapEx line with Ecom, how do you kind of see the CapEx number for the next couple of years?
Amit Agarwal, CFO
our long-term guidance for the CapEx is in the range of 3.5%-4%. What we expect is over the next two to three years, the CapEx on automation equipment should be minimal.
Evasive
Medium priority
Express Parcel industry growth outlook for FY2026.
Asked by Dhruv Jain, Ambit Capital
Declined to give industry outlook, pivoted to Delhivery-specific growth.
reframed the questionavoided industry forecast
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Question
In FY2025, the 3PL market was obviously facing challenges with respect to insourcing and weaker demand. Sahil, what's your take on FY2026? Do you think that the industry can go back to double-digit growth?
Sahil Barua, Managing Director and CEO
I mean, very bluntly, I don't care where the industry goes. I care about where Delhivery volumes go. And our anticipation, of course, is that through the acquisition of Ecom Express, we will be able to grow faster.
Partial answer
High priority
Bridge to Q4 profitability, pricing actions, working capital, CapEx timeline.
Asked by Gaurav Rateria, Morgan Stanley
Acknowledged question but did not provide a quantitative bridge.
no exact bridge providedqualitative explanation only
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Question
a little bit of a bridge to understand this quarter profitability ... Second question is on Express Parcel. You alluded to certain pricing actions. ... Third question is on working capital and CapEx.
Sahil Barua, Managing Director and CEO
We do not have an exact bridge at this point, but suffice to say, even if freight efficiencies had been discovered in quarter three, you are right, we did have excess freight costs. ... I think the big improvements have come really from organic improvements in freight utilization.
Answered
High priority
Largest customer percentage, Express Parcel realization vs margin, Ecom retention rationale.
Asked by Koundinya Nimmagadda, Jefferies
Answered all three sub-questions with specific explanations.
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Question
What would be the percentage of your largest customer today? ... The second one is on the Express Parcel realization versus margins. ... The last question is on the Ecom Express integration side. What was the reason why you assumed only 30% retention?
Sahil Barua, Managing Director and CEO
I think there's no major swing in terms of percentage of our business coming from largest customer. ... realizations have gone up. Margins have trended down a little bit. You are right. It is entirely down to parcel mix. ... I think an optimist can never be pleasantly surprised.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| PTL service EBITDA margin at 10.8% in Q4 FY25 | 10.8% | 5.4% | Overstated vs filing |
| PTL revenues grew nearly INR 800 crore between FY23 and FY25 | ₹800 cr | ₹6 cr | Overstated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.