Delhivery543529Quarterly results

Q2FY27 letter: revenue Rs.3,066 Cr, PAT Rs.41 Cr, Express volumes up 32.1%

Q2FY27 shareholder letter.

By ScoutQuest · Fri 30 Oct 2026, 4:49 PM IST · 3 min read

Revenue from services: Rs.3,066 Cr (+19.8% YoY)
Consolidated PAT: Rs.41 Cr (1.3% margin)
Adjusted EBITDA: Rs.123 Cr (4.0% margin), up 62% QoQ and 48% YoY

The update is a letter to shareholders covering the quarter and half year ended September 30, 2026 (Q2FY27). It sets out the quarter's operating and financial numbers, then answers eight questions on growth, pricing, margins, capital spending and newer businesses.

Numbers for the quarter

Express parcel shipments of 325 Mn, up 32.1% year on year
PTL freight tonnage of 545K MT, up 14.2% year on year
Revenue from services of Rs.3,066 Cr, up 19.8% year on year
Adjusted EBITDA of Rs.123 Cr at a 4.0% margin; the letter describes this as growth of 62% quarter on quarter and 48% year on year
Reported EBITDA of Rs.205 Cr at a 6.7% margin
Consolidated PAT of Rs.41 Cr at a 1.3% margin

In simple terms, the company handled more volume, earned more revenue and retained a larger operating profit than in the same quarter last year. The letter notes that PAT for the year-ago and immediately preceding quarters, excluding the impact of the Ecom Express acquisition, was Rs.59 Cr and Rs.62 Cr respectively.

Balance sheet and spending

Cash balance of Rs.4,676 Cr at the end of the quarter
Capital expenditure at 4.8% of revenue in H1FY27, against a guided path of reducing capital intensity to 4.5% of revenue
Net working capital reduced to 5 days as of September 2026, from 11 days as of March 2026

What management said about the road ahead

Express volumes grew 32% year on year in Q2FY27 and 43% in H1FY27; October volumes have exceeded the company's initial expectations
Express is expected to end FY27 in the 16-18% service EBITDA margin range, while PTL margins should expand to 15%+ by exit FY27
Q4FY27 is expected to be the peak quarter for the PTL business
Express and PTL realisations improved by 4.1% and 5.6% quarter on quarter, helped by fuel-linked price increases and price revisions for minimum wage inflation

Newer businesses

Delhivery Local, the intra-city platform, is live in 8 cities with plans to add 2 more by Q4FY27; its annualised revenue run-rate has grown from about Rs.100 Cr at the close of Q1FY27 to about Rs.200 Cr, and the company has re-baselined its plan to about Rs.280 Cr by Q4FY27
Financial Services targets an exit annualised revenue run-rate of about Rs.75-100 Cr in the next 18 months
Delhivery International grew 57% quarter on quarter to an annualised revenue run-rate of about Rs.150 Cr and has achieved service EBITDA profitability
Investment in these initiatives was Rs.32 Cr in Q1FY27 and Rs.35 Cr in Q2FY27, within a guidance envelope of Rs.130-160 Cr for FY27

Technology and automation

Self-hosted open-weights models have reduced customer support and POD validation costs by over 50%, according to the letter
The company expects to deploy 100 self-developed autonomous pallet transportation vehicles by Q4FY27
A joint research programme with IIT Delhi has been commissioned for geospatial mapping and fleet scheduling

What a reader can take away

The letter pairs volume growth with margin improvement and lower working capital, and gives explicit margin ranges for its two largest service lines for the rest of FY27. The items to track are whether festive-quarter volumes hold up, whether the stated margin ranges are met, and how quickly the newer businesses convert their revenue run-rates into profit.

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