{"id":163606,"date":"2024-08-05T08:54:54","date_gmt":"2024-08-05T12:54:54","guid":{"rendered":"https:\/\/44.250.171.167\/?p=163606"},"modified":"2024-08-05T08:54:55","modified_gmt":"2024-08-05T12:54:55","slug":"delhivery-ltd-q1-fy25-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/delhivery-ltd-q1-fy25-earnings-conference-call-insights\/","title":{"rendered":"Delhivery Ltd Q1 FY25 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from Delhivery Ltd (DELHIVERY) Q1 FY25 Earnings Concall<\/strong><\/p>\n<ul>\n<li><strong>Financial Performance<\/strong>\n<ul>\n<li>Revenue grew by 13% year-over-year and 4.7% quarter-on-quarter.<\/li>\n<li>EBITDA for the quarter was 4.5%, with adjusted EBITDA at 1.7%.<\/li>\n<li>Profit after tax reached INR54 crore, down 2.4% for the quarter.<\/li>\n<li>This included a positive impact of INR39 crore from changing depreciation methods.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Express Parcel Service<\/strong>\n<ul>\n<li>Volumes grew 0.6% year-over-year and 4.1% quarter-on-quarter.<\/li>\n<li>The service handled 183 million parcels during the quarter.<\/li>\n<li>Revenue increased by 6% year-over-year and 5% quarter-on-quarter.<\/li>\n<li>Growth was seen across all non-large marketplace segments.<\/li>\n<li>Significant growth seen in the heavy goods category.<\/li>\n<li>Service EBITDA remained stable at 18%.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Part Truck Load Business<\/strong>\n<ul>\n<li>Revenue increased by 25% year-over-year.<\/li>\n<li>The business handled just under 400,000 metric tons of load.<\/li>\n<li>Service EBITDA improved to 3.2%.<\/li>\n<li>Growth was driven by both volume increases and yield improvements.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Supply Chain Services<\/strong>\n<ul>\n<li>Revenue grew by 26% year-over-year.<\/li>\n<li>The company has a robust pipeline of customers across auto, electricals, and FMCG sectors.<\/li>\n<li>Service EBITDA margins were 4.4%, slightly below the previous quarter&#8217;s 6%.<\/li>\n<li>The decline in margins was due to increased trucking and manpower costs from sudden demand spikes.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Infrastructure and Capacity<\/strong>\n<ul>\n<li>The company operated with a steady network and infrastructure.<\/li>\n<li>No material capacity additions were made during the quarter.<\/li>\n<li>The customer base expanded from 33,000 to nearly 35,000.<\/li>\n<li>Team size, partner size, and fleet size improved in line with business growth.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Express Volume Shipments<\/strong>\n<ul>\n<li>The company delivered growth despite a volatile quarter for the industry.<\/li>\n<li>Long-term forecast remains steady, with annual e-commerce market growth rates between 15-20%.<\/li>\n<li>The company&#8217;s numbers are expected to be broadly in line with market growth.<\/li>\n<li>Future performance may depend on platform-level strategies, which remain fluid.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Quick Commerce Strategy<\/strong>\n<ul>\n<li>The company is launching a new product for rapid in-city delivery for e-commerce companies.<\/li>\n<li>The company plans to create a network of shared dark store warehousing for multi-tenant use.<\/li>\n<li>Delhivery believes the actual volume at risk from quick commerce in e-commerce is likely to be small.<\/li>\n<li>The company will provide dark stores and delivery services for e-commerce companies on a multi-tenant basis.<\/li>\n<li>The new model focuses on rapid commerce (2-4 hour delivery) rather than sub-30 minute delivery.<\/li>\n<li>Unit economics for rapid commerce are expected to be positive, unlike ultra-fast delivery for low-value products.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Dark Store Network<\/strong>\n<ul>\n<li>Delhivery is creating a network of shared dark store warehousing for e-commerce companies.<\/li>\n<li>The model allows multiple companies to share infrastructure and variable costs.<\/li>\n<li>The approach helps companies avoid over-inventorizing or underutilizing expensive urban real estate.<\/li>\n<li>Large quick-commerce companies are not expected to be immediate customers of this service.<\/li>\n<li>The model is more suitable for companies with diverse SKUs rather than limited shelf space grocery items.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Express Parcel Growth<\/strong>\n<ul>\n<li>Growth was observed across all categories and client segments in non-marketplace e-commerce.<\/li>\n<li>The company saw growth in direct-to-consumer, SME, and marketplace segments.<\/li>\n<li>Consumer-to-consumer shipping via the Delhivery Direct app continues to see steady growth.<\/li>\n<li>The company is expanding its offline reseller network, similar to a franchise program.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Market Share Trends<\/strong>\n<ul>\n<li>The most significant market change has been Meesho internalizing some of its logistics.<\/li>\n<li>There hasn&#8217;t been significant interstate movement of market share among 3PLs.<\/li>\n<li>Delhivery maintains its position as the largest 3PL in the market.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Depreciation and Capex<\/strong>\n<ul>\n<li>The company experiences seasonality in its capex cycle throughout the year.<\/li>\n<li>Q1 and Q2 are periods when capex commissioning begins.<\/li>\n<li>In Q1, the fresh capex was about INR80 crores.<\/li>\n<li>Last year&#8217;s total capex was close to INR550 crores for the full year.<\/li>\n<li>Depreciation is expected to rise in the second half of the year as capex catches up.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Quick Commerce Strategy<\/strong>\n<ul>\n<li>Delhivery won&#8217;t need to build as many dark stores as quick commerce grocery companies.<\/li>\n<li>The company already operates 3,450 delivery stations across the country.<\/li>\n<li>Delhivery doesn\u2019t anticipate building anywhere near 1,000 dark stores or incurring significant capex for this initiative.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Employee Expenses<\/strong>\n<ul>\n<li>There was no significant increase in employee expenses this quarter, contrary to usual trends.<\/li>\n<li>Delhivery&#8217;s increment cycle ends in March, with Q1 typically reflecting wage inflation costs.<\/li>\n<li>The company doesn&#8217;t anticipate a significant increase in wage costs overall.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Contract Negotiations<\/strong>\n<ul>\n<li>Delhivery&#8217;s yield and overall margins have improved between Q4 and Q1.<\/li>\n<li>The company aims to link pricing to the volume provided by customers.<\/li>\n<li>Contracts include protections against adverse mix provided by customers.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Capital Expenditure<\/strong>\n<ul>\n<li>The company purchased vehicles worth about INR29 crore, including Volvo tractors.<\/li>\n<li>Automation investments amounted to INR4 crore.<\/li>\n<li>Plant and machinery investments totaled INR26 crore.<\/li>\n<li>Additional investments were made in furniture and fixtures.<\/li>\n<\/ul>\n<\/li>\n<li><strong>PTL Business Growth<\/strong>\n<ul>\n<li>Business has shown strong growth compared to the industry.<\/li>\n<li>The total spend on PTL in India is estimated to be over 10 billion.<\/li>\n<li>The company&#8217;s network is integrated across PTL and express services.<\/li>\n<li>Serviceability for PTL is the same as for express services.<\/li>\n<li>High-density PTL locations are served by 120 freight service centers.<\/li>\n<li>Expansion strategies include increasing awareness of Delhivery&#8217;s PTL services and enhancing direct sales capabilities in tier 1, 2, and 3 markets.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Margin Expectations<\/strong>\n<ul>\n<li>Express parcel business margins are stable at around 18-20%.<\/li>\n<li>Delhivery aims to pass on cost savings to customers to drive volume growth.<\/li>\n<li>PTL business margins are expected to align with express business margins, potentially higher in the future.<\/li>\n<li>Freight costs have declined year-on-year and sequentially, with further scale benefits expected.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from Delhivery Ltd (DELHIVERY) Q1 FY25 Earnings Concall Financial Performance Revenue grew by 13% year-over-year and 4.7% quarter-on-quarter. EBITDA for the quarter was 4.5%, with adjusted EBITDA at 1.7%. Profit after tax reached INR54 crore, down 2.4% for the quarter. This included a positive impact of INR39 crore from changing depreciation methods. Express [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":162998,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,12],"tags":[8811,10169,8159],"class_list":["post-163606","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-other-industries","tag-delivery-services","tag-earnings","tag-logistics"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":132709,"url":"https:\/\/alphastreet.com\/india\/delhivery-ltd-q1-fy23-earnings-conference-call-insights\/","url_meta":{"origin":163606,"position":0},"title":"Delhivery Ltd Q1 FY23 Earnings Conference Call Insights","author":"Praveen","date":"August 10, 2022","format":false,"excerpt":"https:\/\/youtu.be\/0-6Gx-4L8xU Key highlights from Delhivery Ltd (DELHIVERY) Q1 FY23 Earnings Concall Q&A Highlights: Abhishek Pathak of HSBC asked about the sequential pressure in global e-com volumes and if the company is seeing anything similar in the India e-com space over the short term. Sahil Barua CEO replied that the company\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":178843,"url":"https:\/\/alphastreet.com\/india\/delhivery-reports-record-quarterly-revenue-and-crosses-annual-profitability-milestone\/","url_meta":{"origin":163606,"position":1},"title":"Delhivery Reports Record Quarterly Revenue and Crosses Annual Profitability Milestone","author":"Staff Correspondent","date":"January 31, 2026","format":false,"excerpt":"Delhivery Limited (NSE: DELHIVERY) India\u2019s largest integrated logistics provider achieved \u20b91,000 crore in Service EBITDA for fiscal year 2026 following a record festive season. The company reported an 18% year-over-year increase in revenue, supported by surging express parcel volumes and improving margins in its part-truckload segment. The company reported revenue\u2026","rel":"","context":"In &quot;Analysis&quot;","block_context":{"text":"Analysis","link":"https:\/\/alphastreet.com\/india\/category\/stock-analysis\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":172173,"url":"https:\/\/alphastreet.com\/india\/delhivery-q2-fy26-earnings-results\/","url_meta":{"origin":163606,"position":2},"title":"Delhivery\u00a0Q2 FY26 Earnings Results","author":"Divyansh_Kasana","date":"November 6, 2025","format":false,"excerpt":"Delhivery Ltd, a comprehensive logistics service provider covering express parcels, heavy goods, freight, warehousing, cross-border express, and supply chain software, announced its Q2 FY26 financials reflecting robust top-line growth alongside a net loss. Financial Highlights: Revenue surged 16.85% year-on-year to \u20b92,559 crore from \u20b92,190 crore. Total expenses rose 17.69% to\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"Q2 FY26","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/11\/DEL.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/11\/DEL.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/11\/DEL.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/11\/DEL.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/11\/DEL.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/11\/DEL.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":166058,"url":"https:\/\/alphastreet.com\/india\/delhivery-ltd-q2fy25-13-rise-in-revenue\/","url_meta":{"origin":163606,"position":3},"title":"Delhivery Ltd Q2FY25; 13% rise in Revenue","author":"Divyansh_Kasana","date":"December 13, 2024","format":false,"excerpt":"Delhivery provides a full range of Logistics services, including delivery of express parcels and heavy goods, PTL freight, TL freight, warehousing, supply chain solutions, cross-border Express, freight services, and supply chain software. The company also offers value-added services such as e-commerce return services, payment collection and processing, installation & assembly\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/12\/LK-1.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/12\/LK-1.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/12\/LK-1.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/12\/LK-1.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/12\/LK-1.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/12\/LK-1.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":169015,"url":"https:\/\/alphastreet.com\/india\/delhivery-ltd-q4fy25-6-rise-in-revenue\/","url_meta":{"origin":163606,"position":4},"title":"Delhivery Ltd Q4FY25; 6% rise in Revenue","author":"Divyansh_Kasana","date":"July 3, 2025","format":false,"excerpt":"Delhivery provides a full range of Logistics services, including delivery of express parcels and heavy goods, PTL freight, TL freight, warehousing, supply chain solutions, cross-border Express, freight services, and supply chain software. The company also offers value-added services such as e-commerce return services, payment collection and processing, installation & assembly\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/07\/J-2.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/07\/J-2.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/07\/J-2.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/07\/J-2.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/07\/J-2.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/07\/J-2.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":142977,"url":"https:\/\/alphastreet.com\/india\/earnings-delhivery-ltd-nsedelhivery-q3fy23-results-out-total-income-fell-5-yoy\/","url_meta":{"origin":163606,"position":5},"title":"Earnings | Delhivery Ltd (NSE:DELHIVERY): Q3FY23 Results Out; Total Income fell 5% YoY","author":"Divyansh_Kasana","date":"February 28, 2023","format":false,"excerpt":"Delhivery Ltd (NSE:DELHIVERY) is an Indian logistics and supply chain services company that provides end-to-end logistics solutions to businesses and consumers. The company was founded in 2011 and has since grown to become one of the leading logistics providers in India, with a network of more than 18,500 pin codes\u2026","rel":"","context":"In &quot;Earnings&quot;","block_context":{"text":"Earnings","link":"https:\/\/alphastreet.com\/india\/category\/earnings\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/163606","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/1767"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=163606"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/163606\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/162998"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=163606"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=163606"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=163606"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}