Delhivery posts ₹41 crore Q2 profit and ₹123 crore adjusted EBITDA

Delhivery reported a ₹41 crore profit after tax in Q2FY27, reversing a ₹51 crore loss in Q2FY26, as revenue from services reached ₹3,066 crore. Adjusted EBITDA was ₹123 crore, compared with ₹83 crore a year earlier, while Ecom Express integration costs were nil after ₹90 crore in Q2FY26.

How did Delhivery return to quarterly profit?

Delhivery returned to profit because Q2FY27 total income of ₹3,133 crore exceeded total expenses of ₹3,093 crore, producing ₹40 crore of profit before the share of associate result and tax. After a ₹1 crore share of associate loss and a ₹2 crore tax credit, profit after tax was ₹41 crore.

The Q2FY27 result changed from Q2FY26, when total income was ₹2,652 crore against expenses of ₹2,708 crore and Delhivery reported a ₹51 crore loss after tax. Revenue from services increased by ₹507 crore year on year to ₹3,066 crore, while other income declined to ₹67 crore from ₹92 crore.

Delhivery also improved sequentially from Q1FY27, when profit after tax was ₹32 crore on ₹2,931 crore of service revenue. Q2FY27 freight, handling and servicing costs rose to ₹2,195 crore from ₹2,152 crore in Q1FY27, but revenue from services increased by ₹135 crore over the same period.

What explains Delhivery's ₹123 crore adjusted EBITDA?

Delhivery's adjusted EBITDA was ₹123 crore in Q2FY27, calculated from ₹205 crore of reported earnings before interest, tax, depreciation and amortisation, or EBITDA. The bridge adds back ₹28 crore of share-based payment expense, deducts ₹110 crore of actual lease rent paid, and includes no Ecom Express integration cost in the quarter.

The adjusted measure was ₹40 crore higher than Q2FY26's ₹83 crore, while reported EBITDA increased by ₹137 crore to ₹205 crore. In Q2FY26, the calculation included ₹90 crore of temporary Ecom Express integration costs relating to infrastructure, people, overheads and a business to be discontinued; the corresponding Q2FY27 item was nil.

Adjusted EBITDA also rose from ₹76 crore in Q1FY27, when the bridge included ₹17 crore of Ecom Express integration costs. Delhivery's Q2FY27 adjusted EBITDA margin was 4.0% on service-line revenue of ₹3,017 crore, compared with 2.6% in Q1FY27 and 3.3% in Q2FY26; this service-line measure excludes Local, Rapid and Financial services and Ecom Express businesses being transitioned.

Which Delhivery service lines contributed to Q2FY27 profitability?

Delhivery's Transport business, comprising Express Parcel and part-truckload, or PTL, generated ₹404 crore of service EBITDA in Q2FY27, up from ₹363 crore in Q1FY27. Its margin increased to 15.4% from 14.5%, while Transport service EBITDA was also above the ₹292 crore reported in Q2FY26.

Express Parcel contributed ₹318 crore of service EBITDA at a 16.2% margin in Q2FY27, compared with ₹312 crore and a 15.6% margin in Q1FY27. PTL contributed ₹86 crore at a 12.9% margin, increasing from ₹64 crore and an 11.2% margin in the preceding quarter.

Supply Chain Services produced ₹23 crore of service EBITDA in Q2FY27, compared with ₹13 crore in Q1FY27 and ₹22 crore in Q2FY26. Total service EBITDA was ₹433 crore at a 14.4% margin, while corporate overheads were ₹276 crore, equal to 9.1% of service revenue; investment losses in Local, Rapid and Financial Services were ₹35 crore.

How did Delhivery's costs change during the quarter?

Delhivery's Q2FY27 total expenses rose by ₹81 crore from Q1FY27 to ₹3,093 crore, less than the ₹88 crore increase in total income to ₹3,133 crore. Freight, handling and servicing costs increased by ₹43 crore, employee benefit expense by ₹17 crore, other expenses by ₹13 crore and depreciation and amortisation by ₹8 crore.

Employee benefit expense reached ₹446 crore in Q2FY27, including ₹28 crore of share-based payments and ₹419 crore excluding those payments. Finance costs were unchanged sequentially at ₹34 crore, including ₹33 crore for lease liabilities, while depreciation of property, plant and equipment rose to ₹96 crore from ₹89 crore in Q1FY27.

Against Q2FY26, total freight, handling and servicing costs increased by ₹352 crore to ₹2,195 crore as service revenue rose by ₹507 crore. Corporate overheads increased to ₹276 crore from ₹235 crore a year earlier, but their share of service revenue declined to 9.1% from 9.3% in Delhivery's service-line presentation.

Are Delhivery's operating and capital measures also changing?

Delhivery's operating footprint expanded in Q2FY27, with 59,704 active customers, 25.2 million square feet of infrastructure and 144 gateways. These measures were higher than Q1FY27's 54,096 active customers, 23.3 million square feet and 136 gateways, while daily average fleet size increased to 21,079 from 20,663.

The network included 51 automated sort centres, 81 sorters, 161 freight service centres and 4,420 Express delivery centres in Q2FY27. Delhivery reported service to more than 220 countries and territories and delivery activity across 18,799 unique pin codes, compared with 18,810 pin codes in Q1FY27.

Capital intensity and working-capital measures moved lower in figures excluding the Ecom Express acquisition impact. Net working capital days declined from 11 in March 2026 to five in September 2026, while capital expenditure was 4.8% of revenue in H1FY27, versus 5.1% in H1FY26; automation represented 0.1% of revenue in H1FY27.

Conclusion

Delhivery's ₹41 crore Q2FY27 profit combined higher revenue, a ₹205 crore reported EBITDA result and a ₹123 crore adjusted EBITDA outcome. Transport contributed ₹404 crore of service EBITDA, while the quarter no longer recorded the Ecom Express integration cost that was ₹90 crore in Q2FY26 and ₹17 crore in Q1FY27.

The next results will indicate whether integration costs remain nil as the Ecom Express business identified for discontinuation is addressed, and how the ₹35 crore investment loss in new services changes. Delhivery also reported ₹31 crore of negative free cash flow in H1FY27, despite ₹525 crore of operating cash flow and ₹336 crore of capital expenditure cash outflow.