Delhivery's Q1 net profit plunges 65 pc in FY27
New Delhi, Aug 8
Logistics services provider Delhivery on Saturday posted a 64.9 per cent decline in consolidated net profit to Rs 32 crore for the first quarter of FY27.
The company had posted a net profit of Rs 91 crore in the corresponding quarter of the previous fiscal year.
While revenue from operations rose 27.8 per cent to Rs 2,931 crore during the April-June period, compared with Rs 2,294 crore a year earlier.
The operating environment during the quarter remained challenging due to labour availability issues linked to elections, climate-related disruptions, geopolitical uncertainty and changes in labour regulations.
"Q1 environment was particularly challenging owing to volatile labour availability owing to elections and climate disruptions, geopolitical uncertainty and statutory changes to labour codes, requiring us to take heightened measures to support network service quality in the form of buffer staff and network capacity," the company said in a letter to shareholders.
In addition, total expenses rose 29 per cent year-on-year to Rs 3,011.6 crore in the June quarter from Rs 2,326.6 crore in the year-ago period.
The company reported earnings before interest, taxes, depreciation and amortisation (EBITDA) of Rs 214 crore during the quarter, compared with Rs 119 crore a year earlier. EBITDA margin improved to 7.5 per cent from 5.4 per cent.
Shares of Delhivery ended flat at Rs 471.10 -- up 0.26 per cent -- apiece on the BSE on Friday. The stock has recorded a 52-week high of Rs 524.25 and a 52-week low of Rs 374.40 on the exchange.
In the last one month, the stock has declined about nine per cent and more than two per cent in past three months. It delivered a gain of one per cent in last one-year horizon.
— IANS
Reader Comments
As someone who works in logistics, I can tell you Q1 is always tough with elections, heatwaves, and monsoon disruptions. The fact that they maintained EBITDA margin improvement to 7.5% shows operational resilience. Long-term story remains intact, but short-term traders will be disappointed. Still holding my shares. 📦
The stock fell 9% in a month! And they say "challenging environment" - bhai, every company faces these issues. Zomato, Swiggy are doing fine. Delhivery's management needs to control costs better instead of blaming external factors. Otherwise investors will lose faith. 😤
Actually the EBITDA improved significantly - from 5.4% to 7.5%! That's a positive sign. The dip in net profit is due to one-time costs like buffer staff and network capacity. Once the election season and monsoon pass, Q2 should be better. Patience is key in this sector. 🙏
I've been tracking Delhivery since IPO and this is the same pattern every year. Q1 always looks bad on paper but they recover. What matters is the E-commerce boom in Tier 2 and 3 cities - their network is expanding. The 52-week range suggests solid support at 374. If you're a long-term investor, this could be a buying opportunity on dips.
High expenses during elections, weather disruptions, and new labour codes - these are legitimate challenges. But management should have planned better. As a shareholder, I'm slightly concerned about the rising costs. Hoping they optimize operations in the coming quarters. 🤞
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