Logistics major rebounds sharply as volumes rise and operating leverage kicks in
After slipping into losses in the September quarter, Delhivery staged a strong turnaround in Q3 FY26, reporting a net profit of INR 39.6 Cr, up 59% YoY from INR 24.9 Cr in the year-ago period. The rebound comes just a quarter after a loss of INR 50.4 Cr in Q2 FY26. What powered the comeback?
Revenue Momentum Returns
Topline growth remained firm across both year-on-year and sequential metrics.
- Revenue from contracts with customers rose 18% YoY to INR 2,804.9 Cr, from INR 2,378.2 Cr.
- On a QoQ basis, revenue increased 10% from INR 2,559.3 Cr.
- Including other income of INR 77.1 Cr, total income stood at INR 2,882.1 Cr.
Higher demand across services helped Delhivery regain scale advantages.
Expenses Rise, But Margins Improve
Costs increased, but at a slower pace than volumes.
- Total expenses rose 15% to INR 2,819.9 Cr.
- Transportation services delivered a service EBITDA margin of 16%, aided by better asset utilisation and tighter cost discipline.
In logistics, utilisation is everything—fill the network, and profitability follows.
Exceptional Items Mask Underlying Strength
Reported profit was weighed down by one-offs.
- INR 6.5 Cr impairment loss on an undisclosed investment
- INR 20.9 Cr one-time expense linked to changes in Central labour laws
- Total exceptional item expense stood at INR 27.4 Cr, versus nil last year
Excluding exceptional items and Ecom Express integration costs, Delhivery said PAT would have been INR 110 Cr.
Ecom Express Integration Still a Cost Headwind
Integration expenses continue to cloud near-term numbers.
During the Q2 earnings call, CEO Sahil Barua said the integration of Ecom Express would cost another INR 100–110 Cr over the next two quarters. These costs were a key reason behind the Q2 loss.
The market, however, appears focused on Delhivery’s underlying operating performance rather than transitional noise.
EBITDA Hits Record High
Operating profitability surged to historic levels.
- Adjusted EBITDA jumped 227% YoY to INR 147 Cr.
- The company said this was an all-time high, matching its entire FY25 EBITDA.
- Cumulative service EBITDA crossed INR 1,000 Cr in 9M FY26.
This marks a clear inflection point in Delhivery’s operating leverage story.
Volumes Drive the Upside
Demand strength was visible across core segments.
- Express parcel shipments rose 43% YoY to 29.5 Cr.
- Part Truck Load (PTL) volumes crossed 500K metric tonnes for the first time, growing 23% YoY.
The company attributed PTL growth to consistent sales execution and stable service quality, even as network volumes scaled sharply.
Network Scale Continues to Expand
Delhivery ended the quarter with broader reach and higher capacity.
- Service coverage: 18,838 pin codes
- Infrastructure: 123 gateways and 49 automated sort centres
- Fleet size: 21,226 vehicles per day, up from 18,612 QoQ
Scale remains Delhivery’s core moat—one that gets stronger as volumes compound.
TL;DR
Delhivery returned to profitability in Q3 FY26 with a 59% YoY jump in PAT to INR 39.6 Cr, driven by strong volume growth and record EBITDA. While exceptional items and Ecom Express integration costs persist, core operations hit new highs.
AI Summary
- Delhivery posted INR 39.6 Cr profit in Q3 FY26
- Revenue rose 18% YoY to INR 2,804.9 Cr
- Adjusted EBITDA surged 227% to INR 147 Cr
- Express parcel and PTL volumes hit record levels
- Integration costs remain a near-term drag
