Delhivery Limited

Delhivery reported a strong Q2 FY26, with revenue from services reaching ₹2,546 crores, reflecting a 16% YoY and 11% QoQ growth. The company achieved an EBITDA of ₹150 crores, translating to a 5.9% margin, a significant improvement from the previous year. Profit After Tax (PAT) stood at ₹59 crores, or 2.2% of revenue, demonstrating consistent expansion in profitability. The company maintained a robust financial position with ₹4,200 crores in cash and cash equivalents.

The acquisition of Ecom Express was successfully completed on July 18, 2025, with a final purchase consideration of ₹1,369 crores. Integration costs of approximately ₹90 crores were recognized in Q2 FY26, which is well within the initial estimated envelope of ₹300 crores. Management anticipates total integration costs to be materially lower than originally forecasted, due to faster network consolidation and higher-than-expected customer retention. The integration has been seamless, with network rationalization completed and seven facilities retained.

The Express Parcel segment saw significant growth, with shipments increasing 32.5% YoY to 246 million and revenue growing 24% YoY to ₹1,611 crores, achieving a 15.3% margin. The PTL segment's revenue grew 15% to ₹546 crores, with tonnage up 12%, and an 8.5% margin. Notably, Supply Chain Services (SCS) improved its margin drastically to 12.8% from -4.4% last year, despite a 14% YoY revenue drop to ₹170 crores. This improvement is attributed to structural changes, enhanced operational processes, and tighter integration with other transport businesses.

Delhivery expanded its infrastructure to approximately 22.05 million square feet, including 123 gateways and 50 automated centers. The company's team size reached 75,000, supported by 64,000 partner agents and a fleet of 18,600 vehicles. Operational efficiency was further enhanced by improved working capital management, with net working capital days falling to under 20 days, marking the best performance to date. Capex intensity for H1 FY26 was 5.1%, with a long-term goal of 4%.

The company invested approximately ₹15 crores in two new services: Rapid Commerce and Delhivery Direct. Rapid Commerce, offering sub-two-hour same-day delivery, is currently operational in three cities with 20 dark stores and is expected to expand to five cities, aiming for an ₹80-100 crore business at minimum. Delhivery Direct, an on-demand intracity service, is live in three cities and is projected to grow into a ₹1,000-1,500 crore business in the next couple of years, with further expansion planned.

Delhivery is re-evaluating its commercial arrangement with FedEx as their five-year contract approaches renegotiation. The company plans to service certain zones non-exclusively and intends to launch its own economy cross-border shipping product. A one-time^📎 charge of ₹20 crores was incurred in Q2 FY26 due to this change in commercial structure, signaling a strategic shift towards greater independence and new product offerings in the cross-border segment.