Logistics major Delhivery reported a consolidated net profit of Rs 40.64 crore in Q2 FY27, reversing a loss of Rs 50.49 Cr in the corresponding quarter last year. Revenue from services increased 19.8% YoY to Rs 3,066 crore, marking the company's first quarter with revenue from services above the Rs 3,000 crore mark.
The Gurugram-based company, co founded by Sahil Barua, also reported stronger shipment volumes and improved operating profitability. Its performance comes as the company steps up investments in AI, automation and new logistics services.
Delhivery had reported a net profit of Rs 31.91 crore in Q1 FY27, meaning profit also improved sequentially.
Shipment Volumes and Operating Margins Improve
Delhivery handled 325 million express parcel shipments during the quarter, up 32.1% from a year earlier. Its part-truckload (PTL) business moved 545,000 metric tonnes of freight, registering 14.2% YoY growth.
Adjusted EBITDA stood at Rs 123 crore, with a margin of 4% of revenue from services. Reported EBITDA was approximately ₹205 crore, while profit after tax came in at Rs 40.64 crore.
The company also reported a strong balance sheet, with cash and cash equivalents and other qualifying deposits and investments totalling ₹4,676 crore at the end of September 2026.
Sahil Barua Raises Growth Outlook
During the October 30 earnings call, co-founder and CEO Sahil Barua said express parcel volumes had grown more than 30% YoY. He added that October volumes were ahead of the company's expectations.
At the start of FY27, Delhivery had indicated an express parcel volume growth outlook of 20-30%. Barua said the business was now performing beyond the upper end of that range, although the company would continue to monitor market conditions.
Delhivery also raised its annualised revenue run-rate expectation for its Delhivery Local business to around ₹280 crore by Q4 FY27, against its earlier target of ₹250 crore. The service provides on-demand intra-city commercial vehicle solutions and was operational in eight cities, according to management.
The company has also outlined a longer-term ambition of building an ₹800-1,000 Cr ARR business over the next two years. These are management targets, not achieved revenue figures.
AI and Automation Begin to Support Efficiency
Delhivery said its investments in AI are beginning to improve productivity across several business functions. Management highlighted better sales productivity, faster customer onboarding, quicker resolution of claims and disputes, and improved fraud detection.
Barua also discussed the company's AI-powered mapping technology. He said improvements in Delhivery Maps had helped the company save around $1 million annually compared with using Google APIs.
Alongside software, Delhivery is investing in physical automation, including autonomous guided vehicles and robotic systems for movement within facilities and mid-mile operations. The company sees automation as increasingly important as labour availability, wage changes and compliance requirements affect logistics operations.
These investments matter because logistics is a scale-driven business where small improvements in route planning, shipment handling and claims management can have a meaningful effect on operating costs.
What the Results Mean for Delhivery
Delhivery's Q2 performance combines stronger volumes with a return to profitability. Its express parcel business remains a key growth driver, while PTL freight, supply chain services and newer offerings provide additional opportunities.
However, the company still faces cost pressures from fuel prices, labour availability and regulatory changes. Its ability to maintain service quality during the festive season while improving margins will be important in the second half of FY27.
For investors, the focus will now shift from a single profitable quarter to the consistency of earnings. Delhivery has demonstrated that higher volumes and technology-led productivity can support better financial performance. The next challenge is to sustain that progress as it expands its network and builds newer businesses.
Disclaimer: This article is for information purposes only and is not investment advice. Investments in securities are subject to market risks. Please read the official offer documents before investing.
