Delhivery transport margin reaches 6.3% as revenue rises 22.1%

Delhivery Limited reported a 6.3% adjusted earnings before interest, tax, depreciation and amortisation (adjusted EBITDA) margin in transport in Q2FY27, up from 4.1% a year earlier. Transport revenue rose 22.1% to Rs 2,633 crore, supported by 32.1% growth in Express parcel shipments to 325 million and 14.2% growth in part-truckload freight tonnage.

How did Delhivery's transport margin change in Q2FY27?

Delhivery's transport adjusted EBITDA margin increased 2.2 percentage points year on year to 6.3% in Q2FY27, while adjusted EBITDA rose to Rs 166 crore from Rs 87 crore in Q2FY26. Transport comprises the Express and part-truckload (PTL) businesses. Delhivery stated that the Q2FY26 transport result excluded the impact of the Ecom Express acquisition.

The transport result also improved from Q1FY27, when revenue was Rs 2,502 crore, adjusted EBITDA was Rs 128 crore and the margin was 5.1%. Revenue increased by Rs 131 crore quarter on quarter, adjusted EBITDA increased by Rs 38 crore, and the margin rose 1.2 percentage points. Delhivery defines adjusted EBITDA as service EBITDA less corporate overheads allocable to the respective services.

The Q2FY27 margin matched Delhivery's transport margin for FY26, the financial year ended FY26, of 6.3%, compared with 3.7% in FY25. Within the reported quarterly series, Q2FY27 remained below the 7.3% margin in Q3FY26 and 7.9% in Q4FY26. The latest quarter was therefore above Q1FY27 but below those two FY26 quarterly results.

What drove Delhivery's transport revenue growth?

Delhivery's transport revenue increased by Rs 476 crore year on year to Rs 2,633 crore in Q2FY27, as both Express parcel and PTL freight recorded higher revenue and volumes. Express parcel revenue rose 21.7% to Rs 1,961 crore from Rs 1,611 crore, while PTL freight revenue rose 23.1% to Rs 672 crore from Rs 546 crore. These two service lines total the reported transport revenue.

Express parcel shipments rose by 79 million, or 32.1%, from 246 million in Q2FY26 to 325 million in Q2FY27. Express parcel revenue growth of 21.7% was below shipment growth of 32.1%. The presentation does not give a pricing, product-mix or other explanation for the difference between those rates.

PTL freight tonnage increased by 68,000 metric tonnes, or 14.2%, to 545,000 metric tonnes in Q2FY27 from 477,000 metric tonnes a year earlier. PTL freight revenue growth of 23.1% exceeded the increase in tonnage. Express remained the larger transport service line, with Rs 1,961 crore of quarterly revenue against Rs 672 crore for PTL freight.

How did Delhivery's first-half transport performance compare?

Delhivery reported Rs 5,135 crore of transport revenue in H1FY27, a 26.2% increase from Rs 4,069 crore in H1FY26. First-half adjusted EBITDA increased to Rs 294 crore from Rs 190 crore, and the transport margin rose to 5.7% from 4.7%. Delhivery stated that the H1FY26 and Q1FY27 transport adjusted EBITDA figures excluded the impact of the Ecom Express acquisition.

Express parcel shipments expanded 42.7% in H1FY27 to 647 million from 453 million in H1FY26. Express parcel revenue increased 27.1% to Rs 3,830 crore from Rs 3,015 crore. As in the quarterly comparison, shipment growth exceeded Express revenue growth, and the presentation does not disclose a reason for that difference.

PTL freight revenue was Rs 1,305 crore in H1FY27, up 23.8% from Rs 1,054 crore, while tonnage rose 16.3% to 1,087,000 metric tonnes from 935,000 metric tonnes. The 5.7% H1FY27 transport margin was lower than Q2FY27's 6.3%, because the first-half period includes Q1FY27, when the transport margin was 5.1%.

How did other service lines affect Delhivery's profitability?

Delhivery's overall adjusted EBITDA margin was 4.0% in Q2FY27, compared with 3.3% in Q2FY26 and 2.6% in Q1FY27. Overall revenue was Rs 3,066 crore and overall adjusted EBITDA was Rs 123 crore. The overall margin was below the transport margin because the other reported service lines had lower margins or adjusted EBITDA losses during the quarter.

Supply Chain Services generated Rs 191 crore of revenue and Rs 2 crore of adjusted EBITDA in Q2FY27, a 0.9% margin. This compared with Rs 199 crore of revenue and an Rs 8 crore adjusted EBITDA loss in Q1FY27, when its margin was negative 4.1%. In Q2FY26, Supply Chain Services reported Rs 170 crore of revenue and Rs 3 crore of adjusted EBITDA, or a 1.6% margin.

New initiatives generated Rs 49 crore of revenue in Q2FY27, compared with Rs 32 crore in Q1FY27 and Rs 10 crore in Q2FY26, while their adjusted EBITDA loss widened to Rs 35 crore from Rs 32 crore and Rs 15 crore, respectively. Delhivery identifies new initiatives as Delhivery Local, Rapid and Financial services. The Others category reported Rs 193 crore of revenue and an adjusted EBITDA loss of Rs 10 crore in Q2FY27.

Conclusion

Delhivery's Q2FY27 transport performance combined higher volumes in its two main service lines with a higher adjusted EBITDA margin. Transport revenue rose 22.1%, with Express parcel revenue increasing by Rs 350 crore and PTL freight revenue by Rs 126 crore, while transport adjusted EBITDA increased by Rs 79 crore. The 6.3% margin was above both Q2FY26's 4.1% and Q1FY27's 5.1%.

The next reported results can be compared with the 7.3% and 7.9% transport margins recorded in Q3FY26 and Q4FY26, respectively. They can also clarify the unresolved trajectory of new initiatives, which increased revenue to Rs 49 crore in Q2FY27 but recorded an adjusted EBITDA loss of Rs 35 crore; the presentation does not disclose a target or forward plan for that business.