Delhivery’s net profit dropped 64.9% to ₹31.9 crore for the June quarter despite a 27.8% revenue increase to ₹2,931 crore. Profitability was pressured by higher fuel and labor costs. The company also announced that Vani Venkatesh has been appointed Deputy CEO, while COO Ajith Pai is set to depart in September.
Delhivery reported its financial results for the first quarter of the 2026-27 fiscal year today, showing a notable gap between revenue growth and bottom-line performance. The company’s consolidated net profit fell 64.9% to ₹31.9 crore, down from ₹91.1 crore in the same period last year. This dip occurred even as revenue from operations grew by 27.8% to ₹2,930.7 crore, supported by strong volume growth across its logistics network.
The revenue jump was driven by solid performance in the company's core transportation businesses. Express parcel shipments increased by 55.2% year-on-year to 322 million units, while part-truckload freight tonnage grew by 18.4% to 542,000 metric tonnes. Despite this high volume of business, profitability came under pressure. The EBITDA margin, which reflects the company's core operating profitability, contracted to 4.85% from 6.49% a year ago.
Management linked the margin pressure to several external factors. Rising fuel prices contributed to higher transportation costs, while statutory minimum wage increases in several states pushed up labor expenses. Additionally, the company noted that climate-related disruptions and general geopolitical uncertainties impacted supply chain stability during the quarter. To counter the impact of rising fuel costs, Delhivery stated it has activated fuel-linked price revisions in customer contracts, though the full financial benefit of these adjustments is expected to be visible in the second quarter.
Alongside the financial results, the company announced a significant management change. Vani Venkatesh has been appointed as Deputy CEO, effective August 8. She previously served as the Chief Business Officer and will now oversee revenue, marketing, and customer experience. Concurrently, the company confirmed that Ajith Pai, a founding member and Chief Operating Officer, will depart on September 15 to pursue other interests.
Investors are also tracking the progress of the Ecom Express integration. Delhivery reported that costs related to this acquisition have totaled ₹165 crore since July 2025, a figure that remains well within the company’s initial guidance of ₹300 crore. These costs, which included network optimization and employee adjustments, are largely finished, and the company does not expect to report them as a separate item moving forward.
Looking ahead, Delhivery has set volume growth targets of 20-30% for express parcels and 18-22% for part-truckload freight for the full fiscal year. The company maintained a stable cash position of ₹4,677 crore, with capital expenditure kept controlled at 3.1% of revenue. For investors, the next important updates will be the company’s ability to improve profit margins in the coming quarters and the impact of the new leadership team on long-term operations.