Delhivery's Q1 Profit Drops 65% Amid Rising Costs, Revenue Grows
Logistics firm Delhivery reported a 65% year-on-year profit decline in Q1 FY27, despite a 28% rise in revenue. Increased operating expenses significantly impacted the company's bottom line.
Logistics giant Delhivery experienced pressure on its profitability in the first quarter of fiscal year 2027, reporting a 65% year-on-year drop in profit to INR 31.9 crore. This decline occurred even as the company achieved a healthy 28% increase in operating revenue, reaching INR 2,931 crore.
The significant profit reduction was attributed to factors including labor shortages, fuel costs, weather disruptions, and revised minimum wage regulations in several states. These challenges necessitated increased spending on additional staff and network capacity to maintain service quality, leading to a 29% rise in total expenses.
Despite profitability pressures, Delhivery saw strong volume growth across its transport businesses. Express parcel volumes showed robust expansion, supported by market share gains and new client acquisitions. Part-truckload (PTL) volumes also improved, aided by the expansion of business development teams.
Delhivery continues to invest in new growth areas. Its direct-to-consumer offering, Delhivery Local, surpassed an annual recurring revenue (ARR) of INR 100 crore during the quarter. The company also allocated INR 50 crore to bolster its non-banking financial company (NBFC) arm and launched AI-powered tools to optimize operations.