Delhivery raises Local target to Rs 280 crore by Q4FY27

Delhivery Ltd. has raised Delhivery Local’s Q4FY27 annualised revenue run-rate target to about Rs 280 crore from about Rs 250 crore. The on-demand intra-city platform’s run-rate rose from about Rs 100 crore at Q1FY27 close to about Rs 200 crore currently, while Delhivery International reached service EBITDA profitability at about Rs 150 crore of annualised revenue run-rate.

Why did Delhivery raise its Local revenue target?

Delhivery raised Delhivery Local’s Q4FY27 annualised revenue run-rate target to about Rs 280 crore, compared with its initial target of about Rs 250 crore. Delhivery Local’s annualised revenue run-rate had grown from about Rs 100 crore at the close of Q1FY27 to about Rs 200 crore at the time of the Q2FY27 shareholder update.

The revised Q4FY27 target is about Rs 30 crore above the original plan. Management also said Delhivery Local is on track for an annualised revenue run-rate of Rs 800 crore to Rs 1,000 crore in the next two years, which is a stated plan rather than a reported result.

Delhivery Local was live in eight cities in Q2FY27: Delhi NCR, Bangalore, Mumbai, Hyderabad, Ahmedabad, Jaipur, Pune and Chennai. Delhivery plans to enter two more cities by Q4FY27, expanding the on-demand intra-city logistics platform beyond its eight-city network.

Contribution margins have improved steadily, according to management, and newly launched cities are reaching contribution-margin ramp-up faster than earlier launches. Delhivery did not disclose a contribution-margin percentage, city-level revenue or a separate profit figure for Delhivery Local.

How is Delhivery International performing in Q2FY27?

Delhivery International grew its annualised revenue run-rate by 57% quarter on quarter between Q1FY27 and Q2FY27 to about Rs 150 crore, and achieved service earnings before interest, tax, depreciation and amortisation, or service EBITDA, profitability. Delhivery did not disclose the business’s service EBITDA amount or margin.

The International business is expanding economy parcel services under the Saver product, express parcel services and air-freight services across the US, UK and China. Its reported service EBITDA profitability is a business-level operating measure and does not disclose International’s net profit.

Delhivery’s Q2FY27 group results provide a wider operating context. Revenue from services was Rs 3,066 crore, up 19.8% year on year, while adjusted EBITDA was Rs 123 crore with a 4.0% margin. Consolidated profit after tax was Rs 41 crore, compared with a loss of Rs 51 crore in Q2FY26.

Express parcel shipments increased 32.1% year on year to 325 million in Q2FY27, while part-truckload freight tonnage rose 14.2% to 545,000 metric tonnes. International’s 57% sequential run-rate growth exceeded those reported percentage changes, although revenue run-rate and shipment or freight volumes are different measures.

What is Delhivery Financial Services planning?

Delhivery Financial Services is establishing channels to distribute financial products to Delhivery’s vendor ecosystem and developing a capital-efficient co-lending solution with established partners. The stated model is asset-light, with the objective of broadening financial access for vendor partners.

Management said the operational and regulatory groundwork planned for FY27 remains on track. Delhivery Financial Services aims for an exit annualised revenue run-rate of about Rs 75 crore to Rs 100 crore in the next 18 months, but Delhivery did not report its current revenue, lending volume, partner names or credit performance.

The shareholder letter said Financial Services has begun early monetisation of the vendor ecosystem. Its disclosed mechanism differs from Delhivery Local’s city rollout and International’s parcel and air-freight expansion because it centres on product distribution and co-lending partnerships.

Can Delhivery fund its new-business plans within FY27 guidance?

Delhivery expects capital outlay for Delhivery Local, International and Financial Services to remain within Rs 130 crore to Rs 160 crore in FY27. It spent Rs 32 crore on the new initiatives in Q1FY27 and Rs 35 crore in Q2FY27, totalling Rs 67 crore in the first half.

The group reported a cash balance of Rs 4,676 crore at the end of Q2FY27. Capital expenditure was 4.8% of revenue in H1FY27, compared with 5.1% in H1FY26 and 4.7% in FY26, while management said it remains on its trajectory to reduce capital-expenditure intensity to 4.5% of revenue.

Capital additions in H1FY27 were focused primarily on automation and line-haul fleet expansion. Delhivery said fixed-capacity capital expenditure is generally front-loaded in the first half, ahead of e-commerce peak volumes in Q3 and part-truckload peak volumes in Q4.

Net working capital reduced to five days as of Q2FY27 from 11 days in March 2026 and 17 days in September 2025. Delhivery attributed the reduction mainly to lower receivable days, client selection, tighter credit controls, artificial-intelligence-led billing automation and faster claims and dispute resolution, while cautioning that seasonal or business-mix factors could reverse some compression.

Conclusion

Delhivery’s Q2FY27 update places its newer businesses at different stages of development. Delhivery Local has a higher Q4FY27 run-rate target of about Rs 280 crore, International has reached service EBITDA profitability at about Rs 150 crore of run-rate, and Financial Services is building an asset-light distribution and co-lending model. The Rs 67 crore spent across the three initiatives in H1FY27 remains within management’s Rs 130 crore to Rs 160 crore FY27 capital-outlay guidance.

The next disclosed milestones are Delhivery Local’s planned expansion to two further cities and progress toward its about Rs 280 crore Q4FY27 target. Management also plans to complete Financial Services’ operational and regulatory groundwork during FY27, while International continues to expand Saver, express parcel and air-freight services across the US, UK and China.