Delhivery Q1 profit falls 65% to Rs 32 crore even as revenue jumps 28%

Indian logistics company Delhivery reported a 65% year-on-year fall in first-quarter profit, despite a strong rise in revenue, as operating costs increased faster than income.

The company posted a consolidated net profit of Rs 31.9 crore for the quarter ended 30 June 2026, compared with Rs 91 crore a year earlier. Its revenue from operations rose 27.8% to Rs 2,930.7 crore from Rs 2,294 crore.

On a sequential basis, revenue increased 2.8% from Rs 2,850 crore in the March quarter, while profit fell 55.9% from Rs 72.4 crore.

Other income declined to Rs 114.1 crore from Rs 129.9 crore a year earlier, taking total income to Rs 3,044.8 crore, up 25.6%. Total expenses increased at a faster pace, rising 29.4% to Rs 3,011.6 crore from Rs 2,326.6 crore.

Freight, handling and servicing costs remained Delhivery's biggest expense, accounting for about 71.5% of total costs. They rose to Rs 2,152.2 crore from Rs 1,637.8 crore a year earlier.

Employee benefit expenses increased to Rs 429 crore from Rs 352.7 crore, while depreciation and amortisation costs rose to Rs 189.2 crore from Rs 147.5 crore. Finance costs were broadly flat at Rs 33.8 crore, compared with Rs 34 crore, while other expenses climbed to Rs 207.4 crore from Rs 154.7 crore.

Delhivery's EBITDA bridge showed reported earnings before interest, tax, depreciation and amortisation of about Rs 142 crore, compared with Rs 149 crore a year earlier. The reported EBITDA margin was about 4.9%, down from 6.5%.

The company described the operating environment during the quarter as “particularly challenging”, citing volatile labour availability because of elections and climate disruptions, geopolitical uncertainty and statutory changes to labour codes.

Delhivery said it used buffer staff and additional network capacity to maintain service quality, which increased costs. It expects the additional expenditure to be absorbed through revenue growth over the rest of FY27.

The company also said higher global crude oil prices during the quarter led to increased petrol and diesel prices, as well as higher costs for crude-related consumables.

Delhivery's fuel cost pass-through mechanisms in its customer contracts had been activated. The contractual adjustments are based on monthly average fuel prices and can take up to one month to flow through to revenue, meaning their full benefit is expected to be reflected in the second quarter.

Revisions to statutory minimum wages in Haryana, Karnataka, Uttar Pradesh and Punjab also led to higher labour costs across the network, including at key operating facilities in Tauru, Haryana, and Hoskote, Karnataka, according to the company.

It had begun revising prices across client contracts in response to the higher input costs and expected the process to continue through the second quarter.

Despite the cost pressures, Delhivery's Service EBITDA margin stood at 13.1% in the quarter, compared with 13% a year earlier.

The company said it anticipated "no change" to its medium- and long-term margin expansion trajectory.