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Informist, Thursday, Jul. 31, 2025

By Muskan Lodhi

MUMBAI – Delhivery Ltd. is expected to report moderate on-year growth in its consolidated revenues and marginal on-year growth in its net profit for the June quarter, according to brokerages tracking the company. The company's top line is expected to grow on account of industry consolidation, addition of new clients, better utilisation of network capacity, and the performance of its partial truck load segment.

The company's consolidated net profit for the June quarter is estimated at INR 556 million, up marginally on year but down over 23% sequentially, according to the average of estimates from six brokerages. The highest estimate for the company's net profit is INR 758 million from Kotak Institutional Equities and the lowest estimate is INR 281 million from Elara Securities (India) Pvt. Ltd.

The company is expected to report consolidated revenues of INR 24 billion, up 10.5% on year and up 9.5% on quarter. The highest estimate for the company's revenue is INR 24.99 billion from Kotak and the lowest estimate is INR 23.06 billion from Elara Securities.

Brokerages are divided over Delhivery's performance in various segments. The company operates across several segments, including express parcel service, partial truck load freight, full truck load freight, supply chain solutions, and cross-border services.

The logistics services provider's volume growth in the business-to-consumer model, primarily driven by the express parcel segment, is likely to be muted, Elara Securities said. The brokerage attributed this to the slowdown in volume growth in e-commerce and the continued insourcing of 50-70% deliveries by Meesho through Valmo. However, Emkay Global Financial Services Ltd. expects sector consolidation to offset insourcing by Meesho, and estimates this would help the company's revenue from the business to consumer model grow 12% on year.

In the June quarter, the company had received approval for acquiring Ecom Express but the one-time integration cost of INR 3 billion may drag the company's net profit in the next two quarters, according to Elara Securities. Customers from Ecom Express are expected to start contributing to Delhivery's performance in the second half of 2025-26 (Apr-Mar), Nuvama Wealth Management Ltd. said.

The company's volume in the business-to-business model, mostly driven by the partial truck load segment, is expected to grow 11% on year on the back of competitive pricing through favourable rates to businesses and through an increased market share, according to Elara Securities. Brokerages expect the company's revenue from the segment to grow 16-18%, and outperform other segments. Partial truck load is a shipping option wherein the shipment occupies only a portion of a truck's capacity and shares space with shipments from other customers.

Delhivery is expected to post consolidated earnings before interest, tax, depreciation, and amortisation of INR 1.34 billion, up almost 38% from the year-ago quarter and up 12.3% sequentially. The highest estimate for EBITDA is INR 1.52 billion from Kotak and the lowest estimate is INR 1.12 billion from Emkay Global.

"We expect Delhivery to report an adjusted EBITDA margin of 3.3%, aiding from operating leverage of PTL (partial truck load) and QoQ operating leverage support in Express Parcel segment," Kotak said.

The key metric to monitor when the company announces its results Friday is the impact of business-to-consumer segment growth on the company's revenue and volume. Investors will also keep an eye on the customer gains from the integration of Ecom Express.

Thursday, the company's shares closed at INR 425.25 on the National Stock Exchange, up 3.9%. The shares are up 21% since the company announced its March quarter earnings. All the six research reports on the company available with Informist have a 'buy' recommendation on the stock with an average target price of INR 437.

Following are the Apr-Jun consolidated earnings estimates for Delhivery Ltd. based on reports from six brokerages in descending order by the estimate of net profit:

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Edited by Deepshikha Bhardwaj

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