Now Reading: Delhivery Q1 profit plunges 65% on labour and fuel costs
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Delhivery Q1 profit plunges 65% on labour and fuel costs
Delhivery reported a 65% year-on-year drop in net profit to ₹31.9 crore for Q1 FY27, despite operating revenue rising 28% to ₹2,931 crore. Total expenses jumped 29% to ₹3,012 crore, driven by…
The Story in Brief
Delhivery reported a 65% year-on-year drop in net profit to ₹31.9 crore for Q1 FY27, despite operating revenue rising 28% to ₹2,931 crore. Total expenses jumped 29% to ₹3,012 crore, driven by labour shortages, fuel costs, weather disruptions and revised statutory minimum wages in four states. EBITDA improved 6.5% to ₹156 crore.
Express parcel volumes grew strongly on market share gains and new clients across D2C and SME segments. Part-truckload volumes also rose. The company's B2C arm, Delhivery Local, crossed an annual recurring revenue of ₹100 crore. Delhivery expects pricing revisions to offer relief in coming quarters and projects 20-30% volume growth in express parcels for FY27. It also launched an AI-powered tool to cut returns and commissioned an automated storage system.
The Indian Opinion
Logistics is a brutal low-margin business, yet the narrative around Delhivery often swings between 'e-commerce enabler' and 'profitability miracle'. The 65% profit crash exposes the reality: rising labour costs and fuel shocks hit harder than analysts model. Now watch if pricing revisions actually stick with clients. If volumes grow but margins don't recover by Q3, the 'high-growth logistics story' will need a rewrite.
Source: inc42.com
This story was synthesised by AI from the source linked above.
