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Informist, Thursday, May 15, 2025

By Anand JC

MUMBAI - Delhivery Ltd. is expected to report a double-digit rise in consolidated revenue for the March quarter on the back of strategic initiatives taken to grow the part-truckload segment, according to analysts. The supply chain services major will disclose its earnings Friday.

Delhivery is expected to report a consolidated net profit of INR 226.14 million for the March quarter, according to the average of seven analysts' estimates. The company had reported a net loss of INR 684.70 million a year ago and a net profit of INR 249.90 million for the December quarter.

The seven analysts' expectations vary sharply. The profit forecast from Equirus Securities is the lowest at INR 44.00 million, while Elara Securities (India)'s expectation of a profit of INR 351.00 million is the highest.

Delhivery's top line is expected to be INR 23.40 billion for the reporting quarter, up 13.0% on year but down 1.7% sequentially. "The slowdown in eCommerce (electronic commerce) volume growth across platforms and increased insourcing by Meesho through Valmo of up to 50% is likely to keep B2C (business-to-consumer) volumes for Delhivery muted," according to Elara Securities (India).

E-commerce platform Meesho, which was the largest customer in the third-party logistics space, accounting for around 50% of volumes shipped, decided to move its deliveries to an in-house system in 2024. The move prompted analysts to downgrade the Delhivery stock.

SEGMENTAL PERFORMANCE

Delhivery earns its revenue through five segments--express parcel segment, part truckload segment, truckload freight, supply chain services, and cross-border services. For the December quarter, the company earned around 63% of its revenues through the express parcel segment. The part truckload segment contributed 19% to the company's top line.

Part truckload is a shipping option wherein a single shipment occupies a portion of a truck's capacity, sharing space with other customers' shipments. This helps to increase the efficiency of utilisation of truck space, in addition to creating cost benefits for customers.

While Emkay Global Financial Services expects Delhivery's top line to grow 10% on year, it expects revenues of the part truckload segment to grow 20%. The segment had reported a revenue growth of 20% in the base quarter as well.

The express parcel segment, which contributes the most to Delhivery's revenues, is expected to have endured a challenging March quarter because of lower consumption demand overall, analysts said. JM Financial Institutional Securities expects this segment's revenue to grow 3% on year.

Analysts expect Delhivery to report an earnings before interest, tax, depreciation, and amortisation of INR 954.6 million for the March quarter. The forecast by ICICI Securities of INR 383.00 million is the lowest and Equirus Securities's forecast of INR 1.57 billion is the highest. The company's EBITDA for the base quarter was INR 459.00 million. In the December quarter, it was INR 1.00 billion.

Delhivery reported its December quarter earnings on Feb. 7. Since then, shares of the company have risen roughly 3%. Thursday, shares of the company closed flat at INR 324.10 on the National Stock Exchange.

Following are the Jan-Mar earnings estimates for Delhivery based on reports compiled by Informist from seven brokerages in descending order of net profit:

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Edited by Rajeev Pai

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