Delhivery Crosses ₹10,000 Crore Revenue in FY26 Despite Margin Pressure and Ecom Express Costs

Delhivery ended FY26 with strong revenue growth and major business expansion, but the company still faced pressure on profits due to rising costs and acquisition expenses. The logistics giant also made big moves in AI technology, international delivery services, and financial services during the year.

Delhivery Reports Strong Revenue Growth in FY26

In the fourth quarter of FY26, Delhivery reported operating revenue of around ₹2,850 crore, showing a strong 30% year-on-year growth. However, despite the rise in revenue, the company’s net profit stayed almost flat at around ₹72 crore to ₹73 crore.

The main reason behind the slow profit growth was higher spending on transportation, infrastructure, and costs linked to the integration of Ecom Express. Total expenses rose by nearly 27% year-on-year during the quarter.

For the full financial year FY26, Delhivery crossed the ₹10,000 crore revenue mark for the first time. The company reported annual revenue of ₹10,486 crore, up 17% compared to the previous year.

BusinessDelhivery Posts Rs 2,931 Cr Revenue in Q1 FY27, Profit Declines 65%

Start UpHonasa Consumer and Delhivery Shine Amid Mixed Week for New-Age Tech Stocks in India

The company also reported EBITDA of ₹764 crore with a margin of 7.3%. Another positive sign was that Delhivery became free cash flow positive with ₹89 crore during FY26. Its transport business, including Express Parcel and Part Truck Load (PTL) services, delivered a strong 16% Return on Invested Capital (ROIC).

Parcel Deliveries Increased but Margins Came Under Pressure

Delhivery handled huge shipment volumes during FY26 as online shopping demand remained strong in India. The company delivered more than 1 billion e-commerce parcels and moved around 2 million metric tonnes of PTL freight during the year.

In Q4 alone, express parcel shipments jumped by 72% year-on-year to 306 million parcels.

However, the company also faced challenges. More customers started shipping smaller parcels, which reduced the average shipment weight. Because of this, average realisation per shipment fell by around 14%, putting pressure on margins in the Express Parcel business.

Delhivery also had to deal with rising fuel prices, labour shortages during state elections, and expected cost increases due to upcoming labour law changes.

To manage these challenges, the company adjusted fleet routes and created inventory buffers for important operational supplies.

Ecom Express Acquisition Boosts Market Position

One of the biggest developments for Delhivery this year was the acquisition of Ecom Express in a deal valued between ₹1,369 crore and ₹1,407 crore.

With this deal, Delhivery’s market share is expected to rise to around 27% to 30%. Excluding the in-house logistics networks of companies like Amazon and Flipkart, Delhivery now holds a major share in India’s third-party logistics market.

But the acquisition also increased costs. The company spent around ₹90 crore on integration during the year and expects more costs in the coming months.

Some analysts have questioned the long-term value of the deal, saying Delhivery mainly acquired customers instead of major infrastructure assets. There are also concerns about how many Ecom Express customers will continue after the merger.

Delhivery Focuses on AI and International Expansion

To improve efficiency and customer experience, Delhivery is investing heavily in technology and AI solutions.

The company partnered with NVIDIA to build an India-focused AI digital map for logistics operations. It also launched “Delhivery One SmartAssist,” an AI-powered customer support system, along with an autonomous transport management platform using AI agents.

Delhivery is also entering financial services through a new subsidiary. The business will offer Fastag services, fuel support, commercial vehicle loans, and insurance products for trucking partners. Globally, the company expanded its economy air parcel services to countries such as the UK, Canada, and Australia. It also opened subsidiaries in the UK and UAE. In India, its intra-city delivery service “Delhivery Local” expanded to six cities.

Stock Performance and Leadership Changes

Delhivery’s stock recently traded around ₹475 to ₹476, giving the company a market value of nearly ₹35,654 crore.

The company saw strong activity from institutional investors. Nexus Venture Partners sold part of its stake, while investors such as Goldman Sachs, Morgan Stanley, BNP Paribas, SBI Mutual Fund, and Nippon India Mutual Fund increased their investments.

Brokerage firms remain divided on the stock. Some analysts are cautious about valuation and profit pressure, while others continue to maintain “Buy” ratings with targets between ₹500 and ₹645.

On the management side, Delhivery promoted six senior executives to C-suite roles. The company also made key board-level changes and appointed Neelam Dhawan as Chairperson.

Recently, Delhivery paid a small NSE fine for a delay in regulatory filing, while its subsidiary Spoton Logistics received a GST demand order worth ₹16.39 crore.