Delhivery reported a 65% year-on-year decline in profit to ₹31.9 crore for Q1 FY27, even as its operating revenue rose 28% to ₹2,931 crore. The logistics company’s total expenses increased 29% to ₹3,012 crore during the quarter, while EBITDA improved 6.5% to ₹156 crore, according to inc42.com.
The profit drop was driven by labour shortages, rising fuel costs, weather disruptions, and revised minimum wages across four states. These factors forced Delhivery to increase spending on additional staff and network capacity to maintain service quality. Despite these challenges, the company saw strong volume growth in its transport businesses, with express parcel volumes rising due to market share gains and new client additions in D2C, SME, and consumer segments. Part-truckload volumes also improved, supported by expanded business development teams.
Delhivery is also investing in new growth areas. Its B2C offering, Delhivery Local, crossed an annual recurring revenue of ₹100 crore during the quarter. The company allocated ₹50 crore to strengthen its non-banking financial company (NBFC) arm. Additionally, Delhivery launched an AI-powered tool aimed at reducing returns, signaling a push towards technology-driven efficiency improvements.
Delhivery’s Q1 performance highlights the impact of macroeconomic pressures on logistics profitability despite revenue and volume gains. The company’s focus on expanding its B2C segment and financial services, alongside technology adoption, reflects its strategy to diversify revenue streams and improve unit economics.