Delhivery shares fell 6% on the BSE Thursday after the logistics company reported a flat net profit of ₹12 crore for the March quarter, even as revenue grew 12% year-on-year to ₹2,133 crore, according to inc42.com.
The Gurugram-based firm had posted a ₹12 crore profit in the same quarter last year. Management attributed the muted bottom line to higher freight and fuel costs that offset a 9% increase in express parcel volumes to 172 million shipments during the period. Operating margin compressed 90 basis points to 2.6%, while EBITDA slipped 4% to ₹55 crore, inc42.com noted.
The result disappointed investors who had expected stronger leverage from Delhivery’s network expansion. The stock now trades at 1.8× FY24 revenue, a discount to rival Blue Dart’s 2.4× multiple, according to exchange data. Sector-wide pressure on yields has intensified since late 2023 as e-commerce majors renegotiated contracts and new-age logistics startups cut prices to gain share, inc42.com reported.
Delhivery said it will focus on improving unit economics in the current fiscal by tightening lane selection and pushing more volume through automated sort centres. The company targets double-digit EBITDA margins by FY25-end and plans to add 1.5 million sq ft of warehousing space before the festive season, according to its post-earnings call cited by inc42.com.