Delhivery Q1: Profit falls 65%; Vani Venkatesh elevated to deputy CEO, COO Ajith Pai to exit

Delhivery on Saturday reported a sharp decline in consolidated profitability for the June quarter, even as strong growth in express shipments and part-truckload (PTL) freight drove revenue higher. The logistics company also announced a senior management reshuffle, elevating chief business officer Vani Venkatesh to deputy CEO with immediate effect.

On a consolidated basis, profit attributable to owners fell 64.9% year-on-year to ₹31.9 crore in Q1FY27 from ₹91.1 crore a year earlier. Revenue from operations rose 27.7% to ₹2,930.7 crore from ₹2,294 crore.

Based on calculations from the consolidated earnings statement, EBITDA declined 4.5% to ₹142.2 crore from ₹148.8 crore, while the EBITDA margin contracted to 4.85% from 6.49%, a decline of around 164 basis points.

Express volumes jump 55%

Delhivery's transportation business remained the key growth engine during the quarter. Express parcel shipments increased 55.2% year-on-year to 322 million, while PTL freight tonnage rose 18.4% to 542,000 metric tonnes. Overall revenue from services stood at ₹2,931 crore, up 27.8% year-on-year.

The company expects express volumes to grow 20-30% during FY27, while PTL volumes are targeted to increase 18-22%, with continued improvement in yields.

However, management said the quarter was impacted by volatile labour availability, climate disruptions, geopolitical uncertainty and changes in labour regulations. Higher fuel prices also increased transportation costs.

Delhivery said fuel-linked price revisions in customer contracts have been activated, although the benefits carry a lag of up to one month and should be fully reflected in Q2FY27. The company has also begun revising customer pricing following increases in statutory minimum wages across Haryana, Karnataka, Uttar Pradesh and Punjab.

The company said it has incurred ₹165 crore in total Ecom Express integration costs since completing the acquisition in July 2025, significantly below its original guidance of ₹300 crore. The expenses related to exiting legacy contracts, network rationalisation and employee optimisation.

Delhivery said these costs have largely run off and it will no longer separately call out Ecom-related integration expenses in future earnings reports.

The company ended the quarter with ₹4,677 crore in cash, while capex stood at 3.1% of revenue. Management expects capex to remain below 4.5% of revenue and said it anticipates continued improvement in profitability and cash flow.

Alongside the results, Delhivery elevated Vani Venkatesh to deputy CEO, effective August 8. Venkatesh joined the company in February 2025 as chief business officer and KMP and will now oversee revenue, marketing and customer experience while working closely with operations.

Meanwhile, chief operating officer and KMP Ajith Pai, a founding member of Delhivery, will leave the company after close of business on September 15 to pursue opportunities independently. The company said he has transitioned his responsibilities to its new executive operations leadership.