Delhivery's Q2 FY26: A Quarter of Robust Growth and Strategic Expansion

Delhivery Limited, a leading integrated logistics services provider in India, has reported a strong performance for the second quarter of fiscal year 2026 (Q2 FY26), showcasing significant growth in revenue and profitability. The company's consolidated financial results highlight a period of strategic execution, successful integration, and disciplined cost management, setting a positive tone for the upcoming quarters.

For Q2 FY26, Delhivery's revenue from services surged by 16.3% year-on-year (YoY) to ₹2,546 crore. This impressive top-line growth was accompanied by a substantial improvement in profitability, with EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) reaching ₹150 crore, marking a significant jump from ₹57 crore in Q2 FY25. The EBITDA margin expanded to 5.9% from 2.6% in the prior year. Profit After Tax (PAT) also saw a remarkable increase, climbing to ₹59 crore (2.2% margin) compared to ₹10 crore (0.4% margin) in Q2 FY25. These figures underscore the company's ability to scale operations efficiently while enhancing its bottom line.

Segmental Performance and Profitability Drive

The Express Parcel segment continued to be the primary growth engine, with revenue growing 24% YoY to ₹1,611 crore, contributing 63% to the total service revenue. The company handled 246 million express parcel shipments, a robust 32.5% YoY increase. The Part Truckload (PTL) freight tonnage also grew by 11.8% YoY, with revenue reaching ₹546 crore. Management noted that PTL freight revenue continues to outpace tonnage growth, indicating healthy yields and profitable expansion in this segment.

Notably, the Supply Chain Services (SCS) business, despite a calibrated revenue drop to ₹170 crore, demonstrated a significant pivot towards profitability. Its margin improved dramatically from a negative 4.4% in Q2 FY25 to 12.8% in Q2 FY26, reflecting concerted efforts in operational process improvements, warehouse management, and tighter integration with other transportation businesses. The Full Truckload (FTL) service revenue stood at ₹150 crore, while Cross Border services contributed ₹38 crore.

Financial Summary Table (Q2 FY26)

Strategic Initiatives and Future Outlook

A key highlight of the quarter was the successful integration of Ecom Express. The acquisition, completed on July 18, 2025, with a final purchase consideration of ₹1,369 crore, has progressed smoothly. Management confirmed that integration costs for Q2 FY26 were ₹90 crore, well within the original ₹300 crore estimate, and total integration costs are expected to be materially lower than initially forecasted. This seamless transition, coupled with strong customer and revenue retention, positions Delhivery favorably in the market.

Delhivery is also actively pursuing new growth avenues. The company is expanding its 'Rapid Commerce' business, offering sub-two-hour deliveries in Bangalore, Hyderabad, Chennai, and soon Mumbai and Delhi NCR. This initiative, currently a niche capability, has the potential for significant market expansion if delivery costs can be further reduced. Additionally, 'Delhivery Direct,' an on-demand intracity service, is live in Ahmedabad, Delhi NCR, and Bangalore, with plans for expansion to other major cities like Jaipur and Surat. The company projects this could become a ₹1,000-1,500 crore business in the next few years.

In a strategic move to bolster its ecosystem, Delhivery has incorporated 'Delhivery Financial Services Private Limited.' This subsidiary aims to provide financial services, including Fastag, fuel, and commercial vehicle lending, to its extensive network of truckers and partners. This initiative is expected to enhance partner loyalty and facilitate fleet expansion, further strengthening Delhivery's integrated logistics capabilities.

Operational Efficiency and Capital Discipline

Delhivery demonstrated continued improvement in its working capital position, with net working capital days now under 20, reflecting disciplined collections and increased technology adoption. The company also maintained a disciplined approach to capital expenditure (Capex), with H1 FY26 Capex intensity at 5.1%, down from 6.6% in H1 FY25, trending towards a long-term goal of 4%. This focus on efficiency and capital allocation is crucial for sustainable growth and margin expansion.

Overall, Delhivery's Q2 FY26 performance reflects strategic clarity and disciplined execution. The company is not only achieving robust growth in its core segments but also successfully integrating acquisitions and launching new initiatives that promise future expansion. With a strong financial position, improved operational metrics, and a clear strategic roadmap, Delhivery appears well-positioned to capitalize on the evolving logistics landscape in India.