Blue Dart Express Limited — Q2 FY26 earnings call

So, the pricing, every time you add a customer, it is not by looking at the cost because in our network, we carry a very diverse nature of or diverse types of shipments from documents to very heavy ones from air to ground. And we also try and maximize the efficiency of our facilities or network by combining wherever possible, all types of products without compromising on the transit time for the service quality being promised to the customers.

Clarifies Blue Dart's complex matrix-based pricing model, which is not a simple cost-plus, and how they manage profitability given fixed costs and diverse shipments.

Asked by Sushil Parekh

So when you combine B2B as a mix of both surface and air, where air is a higher realization in the pricing, whereas ground is a lower realization in pricing. When the ground grows faster versus air, the blended mix of the two would seem as if B2B is growing slower than the B2C. But it's more of a mix change that is also happening over there.

Explains that the seemingly muted B2B growth (2.5%) compared to B2C (17.9%) is due to a shift in product mix towards lower-realization ground transport within B2B, rather than an actual slowdown in B2B volumes.

Asked by Anshul Aggarwal

I think it's a similar kind of nature. We don't have any -- because even after we added two major facilities in Delhi, it's not that our capex has gone up very significantly... But as of now it's the normal capex that will continue.

Management indicates that capex will continue at a 'normal' level without significant increases, despite recent facility additions, suggesting no major new large-scale investments are planned for the immediate future.

Asked by Dhruv

So we did see some uptick in the last 10 days of September. However, difficult to segregate whether it was on account of GST or it was on account of peak on account of the festive season coming in the early October. But yes, we did see increase.

Acknowledges a volume uptick in late September but highlights the difficulty in isolating the specific drivers (GST cuts vs. seasonal factors), indicating limited clarity on the precise impact of the GST cut.

Asked by Alok

So typically for a month, you can say 60% of the cost should be fixed. However, as you go longer than a quarter, another 10% -- 10% to 15% can be variable in addition to that.

Provides insight into the company's cost structure, indicating a significant portion of costs are fixed, which impacts operating leverage and margin variability.

Asked by Achal

So, 30% is the growth in the ground e-commerce. And as the industry grows, we can look at playing a bigger role, but it will be difficult to assign any numbers from a future projection point of view... Typically, this is the last, I mean, September, October, every year are a part of increase in the shipments, retail-related shipments, as well as the B2B supporting peak season. So, there will be some element of seasonality in this, as happens every year.

Confirms strong growth in ground e-commerce but cautions against projecting future numbers and acknowledges the seasonal nature of Q2's performance, which includes festive demand.

Asked by Nirmal

We don't see a big change over there. We do have the advantage of having our own fleet, so we have a control on what we carry and how fast, I mean, we can carry it consistently without worrying about getting offloaded. So, from that point of view, there is a very significant advantage that adds to our credibility and that kind of structure remains in the industry.

Management asserts that competitive intensity in air express has not significantly changed, highlighting Blue Dart's competitive advantage from its owned fleet and operational control.

Asked by Achal