Delhivery swings to profit, flags strong early traction from Ecom deal

BENGALURU: Delhivery reported its first full-year net profit in the financial year ended March 2025, buoyed by continued gains in its part-truckload (PTL) business and improving operational efficiencies. The logistics company also said early customer movement and network synergy from its proposed acquisition of Ecom Express had begun reflecting in higher daily volumes.

Net profit for FY25 stood at Rs 162 crore, compared to a loss of Rs 249 crore in FY24. This included a Q4 profit of Rs 73 crore, the highest quarterly profit after tax in the company’s history, marking four straight profitable quarters. Full-year revenue from services rose 10 per cent year-on-year to Rs 8,932 crore, while Q4 revenue stood at Rs 2,192 crore.

Founder and CEO Sahil Barua described FY25 as a "very strong end" to the year, with Delhivery entering FY26 “in a good position,” and added that the PAT swing reflected ongoing pricing and efficiency interventions across service lines.

While express parcel shipment volumes remained flat at 752 million for the year, the Part Truck Load (PTL) business saw a 25 per cent growth in revenue to Rs 1,889 crore, with tonnage reaching 1.7 million tonnes, up 19 per cent year-on-year. Barua highlighted improved yield management and fleet utilisation as key drivers for a near eight percentage point expansion in PTL service Ebitda margin, from a loss of Rs 46 crore in FY24 to a Rs 101 crore profit in FY25.

Barua said Delhivery expects to retain about 30 per cent of Ecom Express’s volumes post-acquisition, but noted actual volumes had already increased since the deal was announced. “Our standalone express volumes have seen organic uptick, March, April, and May have each sequentially outperformed, which is unusual for a typically soft Q1,” he said.

Delhivery has factored Rs 300 crore in integration costs into the deal. The company expects limited facility retention from Ecom Express, with no new tech integration needed. Most facilities will be reconfigured into Delhivery nodes, and Ecom’s automation assets, estimated at Rs 200 crore, are expected to lower Delhivery’s future capex needs.

Asked about market structure, Barua said consolidation in the express logistics space was “inevitable” given ongoing losses among competitors. “At prevailing pricing, we are the only profitable player,” he said, reiterating that Delhivery already accounted for “more than 100 per cent of the industry’s profit pool.”

Capex intensity dropped to 5.2 per cent of revenue in FY25 and is expected to taper further toward 3.5-4 per cent by FY27. Delhivery ended FY25 with Rs 5,493 crore in cash and cash equivalents.