Delhivery posts consolidated net profit of 40.6 crore rupees in Q2
Key Facts
Delhivery posted consolidated net profit of 40.6 crore rupees in the second quarter of fiscal 2027, compared with a net loss of 50.5 crore rupees in the year-earlier period, Moneycontrol reported. The company recorded revenue from operations of 3,066.3 crore rupees, up 20% year over year from 2,559.3 crore rupees in the second quarter of fiscal 2026. The results put profit and revenue at the forefront of quarterly performance, as the company moved from a loss to profitability while expanding its business. Delhivery also said earnings before interest, taxes, depreciation and amortization were 205 crore rupees, with a margin of 6.7%, three times the level a year earlier. The stock closed lower on the day the results were announced, despite the improvement in quarterly indicators.
On operations, the company handled 325 million express parcel shipments during the quarter, up 32% year over year, while revenue from the business rose 22%, according to Delhivery data. Shipment volume is a direct indicator of business expansion, while revenue growth in the segment outpaced volume growth. In partial truckload freight, the company moved 545 thousand metric tons during the period, up 14% annually, and revenue from the business grew 23%. The comparison between the two businesses shows growth in both volumes and revenue, with partial truckload revenue rising faster than freight volume. These figures accompany a 20% increase in total revenue from operations; the company did not attribute its return to profitability to any single factor in the announced results.
Delhivery said its early investments in artificial intelligence were beginning to deliver results across several company operations. It said the investments improved sales productivity and customer onboarding, accelerated the resolution of claims and disputes, and helped detect fraud. In this account, the company linked AI to a range of sales, customer service, claims processing and oversight tasks, without attributing the return to profitability to AI alone. On the operating backdrop, the company said the macroeconomic environment remained volatile because of higher fuel prices, labor availability issues and multiple legislative changes. It added that service levels across its network ahead of the holiday season were "the best we have recorded."
The results included a cash balance of 4,676 crore rupees at the end of the second quarter of fiscal 2027, the company said. The balance comes as the period’s results showed revenue and volume growth in both express parcels and partial truckload freight. Management also outlined growth plans for Delhivery Local, raising its annual recurring revenue target to 280 crore rupees by the fourth quarter of fiscal 2027, from an initial target of 250 crore rupees. The company also maintained its plan to reach annual recurring revenue of between 800 and 1,000 crore rupees over the following two years. These targets set out the timeline the company gave for tracking the service’s growth after revising its target for the current fiscal year.
In the market, Moneycontrol reported that Delhivery shares closed down 3% at 386 rupees on October 30, 2026, the day the results were announced. Investing.com coverage said the stock fell 2.84% to 386 rupees, compared with a previous close of 397.3 rupees. Both moves put the stock under pressure in the session in which the results were announced, despite the company’s return to profitability and growth in revenue and volumes. On the results call scheduled for October 30, 2026, at 6 p.m. India time, the chief executive said October shipment volumes were higher than the company had expected for the month. He added that the company had exceeded the upper end of the 20% to 30% express parcel volume growth range it had used as a guide at the start of the fiscal year, and that he saw no reason to revise its volume growth estimate for fiscal 2027.
On the call, the chief executive said he saw no "structural damage" to e-commerce growth and that an estimate of 15% to 20% growth in its market volumes remained reasonable, despite talk of weak sales values during the discount season. This view keeps management focused on business volume, rather than sales value alone, in assessing the direction of e-commerce. For Delhivery Local, the company set a target of 280 crore rupees in annual recurring revenue by the fourth quarter of fiscal 2027, up from the initial target of 250 crore rupees. It also maintained its target of between 800 and 1,000 crore rupees over the following two years. These stated targets remain the main upcoming milestones in the company’s plan for the service.