Delhivery shares in focus today on stellar Q1 earnings, check details

Delhivery Ltd has reported a strong performance for the April-June quarter, with a notable 67% increase in consolidated net profit year-on-year, reaching Rs 91 crore. This growth was underpinned by a 6% rise in revenue to Rs 2,294 crore, facilitated by substantial volume growth in its core business segments.

The operating profit (EBITDA) saw a 53% increase, totalling Rs 149 crore, with an enhanced EBITDA margin of 6.5% compared to 4.5% the previous year. Express parcel shipments grew by 14% YoY to 208 million, contributing to a 10% revenue increase to Rs 1,403 crore. Furthermore, the part truckload business also experienced gains, with tonnage and revenue rising by 15% and 17% respectively. The service EBITDA margin for this segment surged to 10.7%, a significant improvement from 3.2% last year.

Despite these gains, some of Delhivery's other verticals, such as supply chain services and cross-border logistics, reported muted or declining revenue. However, the company highlighted that newer ventures like Rapid and Direct are "showing early promise and will be scaled in the months ahead."

Delhivery's CEO, Sahil Barua, expressed optimism about the upcoming festive season, stating that the company "continues to unlock operating leverage as volumes rise." Prior to the earnings announcement, shares of Delhivery closed at Rs 429.05 on Friday, marking a 0.89% increase on the NSE.

The company's positive financial performance amid challenging conditions has set a promising tone for future quarters. Delhivery's strategic focus on scaling new businesses and leveraging operating efficiencies reflects a commitment to sustaining growth. With the upcoming festive season, the company is poised to capitalise on increased demand, potentially boosting its market position further. Analysts are observing how these developments impact Delhivery's competitive stance in the logistics sector, as they continue to navigate the complexities of the market.