Blue Dart Express Shares Climb on Strong September Quarter Results and Planned Price Hike

Blue Dart Express Ltd. experienced a notable jump in its stock price on Wednesday, October 29, following the announcement of its strong financial performance for the second quarter of the fiscal year (ending September 30). The logistics major reported a 29.5% year-on-year increase in net profit, reaching ₹81 crore from ₹63 crore in the corresponding period last year. Total revenue for the quarter grew by 7%, amounting to ₹1,549.3 crore, up from ₹1,448.4 crore previously. The company also demonstrated enhanced operational efficiency, with EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) rising by 15.6% to ₹251.9 crore, compared to ₹218 crore in the prior year. This growth contributed to an improvement in operating margins, which expanded from 15.1% to 16.3%. Looking ahead, Blue Dart anticipates the third quarter to be its strongest period, driven by increased demand during the festive season and year-end shipments. In a move to sustain profitability amidst rising costs and maintain service standards, the company also declared an annual price revision of 9-12%, set to be implemented from January 2026.

Impact This strong financial performance and the strategic price revision are positive indicators for investors, suggesting potential for continued growth and profitability. The price adjustment is a proactive measure to offset inflationary pressures and safeguard service quality, which could lead to sustained investor confidence and potentially further stock appreciation. Rating: 7/10

Definitions: EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): A measure of a company's operating performance. It is calculated before deducting interest expenses, taxes, depreciation, and amortization. It provides a clearer view of the company's profitability from its core operations. PAT (Profit After Tax) / Net Profit: This is the profit remaining after all expenses, including taxes, have been deducted from the total revenue. It represents the company's bottom-line profit. Revenue: The total income generated by the sale of goods or services related to the company's primary operations. Operating Margins: This ratio indicates how efficiently a company is converting revenue into profit from its core business operations. It is calculated by dividing operating income by revenue and is usually expressed as a percentage.