For Delhivery, the first quarter of FY27 delivered strong revenue growth—but the bottom line tells a different story.
The logistics company reported ₹2,931 crore in revenue from operations, marking a 27.8% year-on-year increase from ₹2,294 crore in Q1 FY26. However, higher operating costs weighed on profitability, with net profit declining 64.8% to ₹32 crore from ₹91 crore a year earlier.
The quarter highlights the growing challenge for India’s logistics companies: expanding volumes and revenue while keeping the cost of delivering that growth under control.
Revenue Growth Comes With Higher Costs
Delhivery’s total income rose 25.6% to ₹3,045 crore during the quarter. Its business spans logistics services including warehousing, last-mile delivery and logistics management.
But expenses increased even faster.
The company’s total expenses rose 29.4% to ₹3,012 crore, compared with ₹2,327 crore in Q1 FY26.
The largest contributor was freight, handling and servicing costs, which climbed 31.4% to ₹2,152 crore. These expenses accounted for 71.45% of Delhivery’s total expenses during the quarter.
Employee benefit expenses also increased 21.9% to ₹429 crore, while depreciation expenses rose 28.6% to ₹189 crore.
The Profitability Challenge
The widening gap between revenue and expenses had a direct impact on Delhivery’s profitability.
Despite adding more than ₹600 crore to its quarterly revenue compared with the previous year, the company ended the quarter with just ₹32 crore in net profit, down sharply from ₹91 crore in Q1 FY26.
On a sequential basis, profit also declined from ₹72.4 crore in Q4 FY26, while operating revenue increased 2.8%.
The numbers underline the economics of running a large-scale logistics network, where higher business volumes also require greater spending on transportation, fulfilment, employees and infrastructure.
What The Numbers Mean
India’s logistics industry is benefiting from the continued expansion of e-commerce, digital commerce and faster delivery expectations. This creates a significant opportunity for large logistics networks such as Delhivery.
But scale comes with its own challenge.
For Delhivery, the next phase of growth will be less about simply adding revenue and more about turning that scale into consistent profitability.
With quarterly revenue now nearing ₹3,000 crore, the company has demonstrated its ability to grow its topline. The sharper focus ahead will likely be on controlling operating costs and improving margins as the business expands.
