Delhivery Q3 Profit Jumps 58% on Record Volumes in 2026

Introduction to Delhivery's Strong Quarter

Logistics and supply chain company Delhivery has reported a robust financial performance for the third quarter of fiscal year 2026, ending December 31, 2025. The company announced a significant 58.4% year-on-year increase in its consolidated net profit, which stood at ₹39.6 crore. This growth was primarily fueled by healthy volume increases across its key segments and improved operating leverage, signaling a period of strengthening profitability. The positive results were well-received by the market, with the company's shares closing higher following the announcement.

Detailed Financial Performance

Delhivery's revenue from operations for the December quarter saw an 18% year-on-year jump, reaching ₹2,804 crore compared to ₹2,378 crore in the same period last year. The company's focus on operational efficiency was evident in its earnings before interest, taxes, depreciation, and amortization (EBITDA), which more than doubled to ₹208.5 crore from ₹103 crore a year earlier. Consequently, the operating margin saw a substantial improvement, expanding to 7.4% from 4.3% in Q3 FY25. This performance underscores the company's ability to scale its operations while effectively managing costs.

Segment-wise Growth Drivers

The growth was broad-based, with both the Express Parcel and Part Truck Load (PTL) businesses delivering record performances. The Express Parcel segment, which primarily serves the e-commerce industry, handled a record 295 million shipments, marking a 43% year-on-year increase. This surge was attributed to strong festive season demand and continued market share gains. Revenue from this segment alone grew 24% to ₹1,839 crore.

The PTL business also achieved a significant milestone, crossing 500,000 metric tonnes of freight for the first time in a quarter. This represented a 23% year-on-year growth in volume, driven by consistent sales efforts and reliable service quality despite the high network traffic during the festive period.

Ecom Express Integration and Exceptional Items

The financial results for the quarter also reflect the ongoing integration of Ecom Express, which Delhivery acquired in July 2025. The company incurred ₹35 crore in integration-related expenses during the quarter. Excluding these integration costs and other exceptional items, the profit stood higher at ₹110 crore. Delhivery anticipates another ₹20-30 crore in integration costs in the final quarter of the fiscal year, after which major expenses on this account are not expected.

Separately, the company accounted for an exceptional item of ₹20.86 crore related to an increase in gratuity and leave liabilities following the notification of new Labour Codes. This one-time charge has been factored into the consolidated results.

Key Financial Metrics for Q3 FY26

Strategic Expansion into New Services

Delhivery is actively expanding its service portfolio to capture new growth opportunities. The company has ventured into rapid commerce by operating 23 dark stores across four cities, enabling two-hour deliveries for direct-to-consumer brands. This new business has already reached an annual revenue run rate of ₹15 crore.

Furthermore, its intra-city on-demand service, Delhivery Direct, is now active in five cities and has an annual revenue run rate of ₹40 crore. The company plans to expand this service to one or two new cities each quarter over the next two years. In a move to tap into global trade, Delhivery also launched 'Delhivery International' in December to support exports for enterprise customers, with the UK slated as the next launch market in Q4 FY26.

Market Reaction and Forward Outlook

Investors reacted positively to the strong quarterly performance. Shares of Delhivery closed 3.53% higher at ₹426.35 on the NSE on January 31, 2026. Management expressed confidence in the underlying growth of e-commerce, projecting a 15-20% annual volume growth in the medium term. The company's focus remains on leveraging its scale, improving operational efficiencies, and expanding its service offerings to sustain its growth trajectory.

Analysis and Conclusion

Delhivery's Q3 FY26 results highlight a successful quarter of profitable growth, driven by strong execution during the peak festive season and increasing operational leverage. The company is effectively managing the integration of Ecom Express while simultaneously investing in new high-growth areas like rapid commerce and international logistics. While risks related to competition and macroeconomic conditions persist, the company's strong performance and strategic initiatives position it well to capitalize on the formalization and growth of India's logistics sector.