Logistics major Delhivery Ltd expects profit margins to improve on the back of cost efficiencies and easing competition, even as recent changes in the Goods and Services Tax (GST) briefly slowed shipment volumes in September.
Chief Executive Sahil Barua said after the September quarter (Q2 FY26) results that following the ₹1,407-crore acquisition of Ecom Express, the company no longer needs to rely on heavy discounts. “Post the acquisition, we’re probably closer to 27–30% in market share,” he noted.
Delhivery has streamlined the acquired business by retaining only seven facilities covering 1.3 million sq. ft and cutting 85% of Ecom Express’s corporate and support costs. It also plans to phase out non-core contracts inherited from the deal.
The company reported ₹2,546 crore in service revenue, up 16.3% year-on-year, while narrowing its net loss to ₹51 crore. Its Express business posted a 15.3% EBITDA margin, slightly lower sequentially due to GST-related volume shifts.
Barua said long-term margins could exceed 18% as market consolidation reduces discounting pressure. “As competitive intensity has reduced, the need to pass on pricing benefits has also come down,” he said.
Delhivery’s express parcel volumes grew 32% year-on-year to 246 million orders, with a single-day peak of 7.2 million during the festive period. The GST rate revision, effective 22 September, temporarily slowed consumption but demand rebounded in categories such as consumer durables.
The company’s Rapid Commerce vertical, which offers two-hour delivery, remains small with ₹12 crore in annualised revenue from 20 dark stores across three cities. Delhivery plans to expand the service to the NCR region in Q3 FY26 and to B2B clients later in the year.
Shares of Delhivery closed 2.7% higher at ₹484.95 on Tuesday.
