Delhivery Q3FY25 Profit More Than Doubles to ₹25 Crore, But Margin Growth Slows
Delhivery Q3FY25: Gurugram-based logistics giant Delhivery has reported a 114% year-on-year (YoY) jump in its consolidated net profit to ₹25 crore in the third quarter of FY25 (Q3FY25), up from ₹11.7 crore in Q3FY24.** However, the company’s margin growth has slowed, highlighting industry-wide cost pressures.
Despite the profitability milestone, Delhivery’s operating margin dipped to 4.3% in Q3FY25, compared to 5% in Q3FY24, indicating tighter cost management and competitive pricing challenges. The company had posted a profit of ₹10.2 crore in Q2FY25, showing a sustained recovery trend.
Revenue Growth Across Segments
Delhivery’s revenue from operations rose 8% YoY to ₹2,378 crore in Q3FY25 from ₹2,194 crore in the year-ago period. The company recorded ₹2,190 crore revenue in Q2FY25, reflecting a steady growth trajectory.
The firm’s Part Truckload (PTL) business was the standout performer, with revenue surging 22% YoY to ₹462 crore from ₹379 crore. The segment also recorded a 17% YoY volume increase to 412,000 metric tonnes (MT), compared to 354,000 MT in Q3FY24.
Meanwhile, the core Express Parcel segment witnessed 3% YoY growth, with revenue reaching ₹1,488 crore in Q3FY25, up from ₹1,448 crore in Q3FY24. The shipment volume increased by 2% to 206 million orders, up from 201 million in the same quarter last year.
Other key business segments also saw moderate growth:
- Truckload services revenue grew 5% YoY to ₹160 crore.
- Cross-border services revenue rose 12% YoY to ₹43 crore.
Profitability Despite Industry Challenges
Despite the logistics sector facing broader economic headwinds, Delhivery has remained profitable since Q1FY25. The company’s December performance was the highest ever in its PTL segment following the successful integration of Spoton Logistics. This momentum has continued into January 2025, further strengthening the company’s market position.
“Profitability continued in Q3 despite broader industry headwinds, and December was our highest volume month in PTL so far post-Spoton integration,” said Sahil Barua, MD & CEO of Delhivery. He emphasized the company’s growing revenues, increasing profitability, and high-quality logistics network as factors driving long-term sustainability.
New Leadership Appointment: Vani Venkatesh Joins as CBO
In a significant management move, Delhivery has appointed Vani Venkatesh as its Chief Business Officer (CBO), effective February 28, 2025.
Venkatesh, a seasoned executive, previously served as CEO for Global Business at Airtel and held leadership roles across retail, marketing, and regional business operations. She replaces Sandeep Kumar Barasia, who resigned in July 2024 after a nine-year stint.
“I am excited to join Delhivery, an organization that has redefined logistics in India. I look forward to working with its talented team to drive business growth,” said Venkatesh.
She will oversee Delhivery’s Express Parcel, PTL, and supply chain services, along with client servicing and marketing functions.
Stock Performance & Financial Metrics
Despite strong earnings, Delhivery’s stock has faced volatility. The current share price stands at ₹317, significantly below its 52-week high of ₹485.
Key Financial Ratios & Market Performance
| Metric | Value |
|---|---|
| Market Cap | ₹23,568 Cr |
| Current Price | ₹317 |
| 52-Week High/Low | ₹485 / ₹306 |
| Stock P/E | 749 |
| Book Value | ₹125 |
| Price to Book Value (P/BV) | 2.53 |
| Dividend Yield | 0.00% |
| ROCE (Return on Capital Employed) | -1.73% |
| ROE (Return on Equity) | -2.94% |
| Debt to Equity Ratio | 0.15 |
| Total Debt | ₹1,363 Cr |
| Industry P/E | 27.4 |
| PEG Ratio | 57.3 |
| Intrinsic Value | ₹24.6 |
| Graham Number | ₹17.1 |
| Piotroski Score | 5.00 |
Conclusion: What Lies Ahead for Delhivery?
Delhivery’s consistent profitability, revenue growth, and expansion in key segments signal a strong business model despite margin pressure and macroeconomic headwinds. The company’s focus on network quality, operational efficiencies, and leadership changes will be key factors in maintaining profitability and improving margins.
With a strong foothold in India’s logistics space and growing volumes in Express Parcel and PTL, Delhivery is well-positioned for sustained growth, albeit with cautious optimism regarding cost pressures and industry competition.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.