Delhivery Q1 net profit drops 65% to Rs 32 crore, revenue up 28%

Logistics major Delhivery reported a sharp 65% year-on-year decline in consolidated net profit for the first quarter of fiscal 2027, coming in at Rs 32 crore. The figure, released on Saturday, marks a significant fall from the Rs 91.4 crore profit recorded in the same quarter last year.

Revenue, however, painted a brighter picture. The company's top line grew 28% to Rs 2,240 crore, driven by increased shipment volumes across its express parcel and supply chain businesses. The contrasting numbers highlight a familiar squeeze: growth is coming, but at a cost.

Expenses eat into margins

Operating expenses rose faster than revenue during the quarter, according to the company's filing. Employee costs, fuel prices, and last-mile delivery network expansion all contributed to the margin pressure.

Delhivery's management did not provide a detailed segment-wise breakdown in the preliminary statement, but analysts expect the supply chain division to have outperformed the core express parcel business. The company has been investing heavily in automated sorting centres and surface transport routes, which typically weigh on near-term profitability.

Competitive landscape remains intense

The logistics sector has seen aggressive pricing battles, especially with e-commerce giants scaling their in-house delivery networks. Delhivery has countered by diversifying into B2B freight and cross-border services, though these segments are still maturing.

Industry watchers note that the 28% revenue growth is respectable in a seasonally soft quarter. Q1 typically sees lower volumes compared to the festive-heavy second half, making the profit decline less alarming to some investors.

What the numbers mean

On a sequential basis, the profit drop from the March quarter is steeper, indicating that the cost pressures are not just seasonal. The company's earnings before interest, tax, depreciation, and amortisation (EBITDA) margins are expected to remain under scrutiny when the full financial details are presented.

Delhivery's shares have been volatile in recent sessions, with the stock trading in a broad range as investors weigh growth prospects against profitability concerns. The company did not revise its full-year guidance in the brief release.

Market reaction and peer comparison

The results come on a day when several other firms announced quarterly numbers. Aditya Birla Fashion and Retail posted a Rs 215-crore loss, while Ceigall India saw an uptick in bottom line. The mixed bag reflects a broader trend of uneven corporate earnings this season.

Analysts will be watching Delhivery's management commentary on the earnings call scheduled for next week. Key questions include the trajectory of average selling prices per shipment and whether the company plans to raise rates to counter input cost inflation.

For now, the market's focus shifts to the second half of the fiscal year, when festive demand typically boosts volumes. Delhivery's ability to convert that growth into healthier margins will determine whether this quarter's profit dip is a blip or the start of a trend.