Now Reading: Delhivery profit plunges 65% in Q1; shares fall 4%
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Delhivery profit plunges 65% in Q1; shares fall 4%
Delhivery’s Q1 FY27 net profit fell 65% year-on-year to Rs 31.9 crore, despite operating revenue rising 28% to Rs 2,931 crore. Total expenses jumped 29% to Rs 3,012 crore, driven by labour…
The Story in Brief
Delhivery’s Q1 FY27 net profit fell 65% year-on-year to Rs 31.9 crore, despite operating revenue rising 28% to Rs 2,931 crore. Total expenses jumped 29% to Rs 3,012 crore, driven by labour shortages, fuel costs, weather disruptions, and revised statutory minimum wages in four states. EBITDA improved 6.5% to Rs 156 crore, but the margin shrank to 4.9% from 6.5% a year ago. The stock fell 4% on Monday.
Brokerage Nuvama retained a Buy rating but cut its target price to Rs 570 from Rs 580, citing margin pressure and higher spends. Delhivery expects pricing revisions to aid recovery from Q2. The firm projects express parcel volume growth of 20-30% and PTL growth of 18-22% in FY27. Its new B2C offering, Delhivery Local, crossed an annualised revenue run rate of Rs 100 crore in Q1.
The Indian Opinion
The financial press loves a profit-drop scare, but the headline 65% plunge masks a 28% revenue jump. Labour shortages and fuel costs are cyclical, not structural. Nuvama’s Buy call with a lowered target suggests the market is pricing in a recovery from Q2. The real test is whether Delhivery can translate volume gains into margin expansion once wage re-pricing takes effect. Watch the EBITDA margin next quarter, if it stays below 5%, the bullish case weakens.
Sources (2): inc42.com, economictimes.indiatimes.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
