Delhivery Ltd Q1 FY27 Results Analysis: PAT Falls 64.96%, Margin Compresses 341 bps

Delhivery Ltd's Q1 FY27 numbers came in soft, with revenue of Rs. 2,930.73 Cr (+27.76% YoY) and PAT growth of -64.96% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Revenue grew 27.76% YoY, but PAT fell 64.96% as EBITDA margin compressed 341 bps to 8.74%. The Ecom Express acquisition caused a Rs.46.29 Cr subsidiary drag, and freight cost pressure from diesel hikes added 204 bps of margin headwind. No guidance beats; concerns dominate the quarter.

Key Investment Insights

Key Positives

• Revenue grew 27.76% YoY to Rs.2,930.73 Cr, outpacing industry e-way bill growth of 12-14.5%.
• Standalone entity generated PAT of Rs.78.20 Cr, indicating core profitability in the base business.
• Free cash flow breakeven of Rs.89 Cr achieved in FY26.

Risk Factors

• PAT declined 64.96% YoY to Rs.31.91 Cr.
• EBITDA margin compressed 341 bps YoY to 8.74%.
• Subsidiary drag of Rs.46.29 Cr from Ecom Express acquisition, which operated at a net loss.
• Freight costs grew 31.41% YoY, 204 bps above revenue growth, driven by diesel price increases.