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Delhivery Turns Profitable with Rs73 Cr in Q4. A Breakout Quarter That Sent the Stock Soaring May 19 2025Results

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Delhivery Ltd, India’s leading logistics and supply chain services company, has reported a net profit of Rs 73 crore for Q4 FY25, marking a major milestone in its path to profitability. This performance comes after several quarters of losses, and has sparked strong investor optimism, sending the stock surging in early trade.

With improved operational efficiency, cost control, and volume growth across its logistics network, the company has showcased its ability to transition from scale-building to sustained profitability.

Key Highlights – Q4 FY25 (Jan–Mar 2025)

  • Net Profit: Rs 73 crore vs. Rs-159 crore loss in Q4 FY24

  • Revenue from Operations: Rs 2,076 crore, up ~12% YoY

  • Adjusted EBITDA: Rs 120 crore with margins improving significantly

  • Operating Cash Flow: Positive for second consecutive quarter

  • Stock Reaction: Shares jumped over 8% post-results

What Drove the Profit Surge?

1. Operational Leverage

Delhivery scaled its network capacity and improved utilization of its automated sort centers and linehaul routes. Higher shipment volumes — particularly in PTL (Partial Truckload) and Express Parcel segments — resulted in lower unit costs.

2. Cost Discipline

The company continued its focus on controlling fixed overheads, improving route efficiency, and optimizing last-mile delivery costs through automation and tech integration.

3. Improved Service Mix

Revenue contribution from B2B express, warehousing, and PTL freight services grew faster than the B2C e-commerce vertical, improving margins. The diversification away from low-margin segments was key to the turnaround.

Segment-Wise Performance

Express Parcel and PTL Freight

  • Strong demand from D2C brands and retail distribution helped volumes rebound.

  • Revenue from these segments grew in double digits YoY.

Supply Chain Services (SCS) & Warehousing

  • Higher warehousing throughput, better occupancy rates.

  • 3PL services gained traction from FMCG and auto clients.

Cross-border & International

  • Still in early stages, but revenue grew modestly amid better network integration.

Stock Market Response

Post the earnings announcement, Delhivery shares surged by over 8% intraday, hitting multi-month highs. The sharp reaction underscores investor confidence in the company’s pivot to profitability.

Brokerages are reviewing their targets, with early signs of re-ratings underway.

“Delhivery has turned a key corner. Profitability combined with revenue growth in core logistics verticals makes it an exciting long-term play,” said a domestic brokerage analyst.

Outlook: What’s Ahead for Delhivery?

The management emphasized a focus on:

  • Sustained profitability in FY26

  • Expansion of PTL hubs and warehousing footprint

  • AI-driven network optimization and route planning

  • Selective capex with focus on ROI-positive automation

Delhivery is expected to benefit from India’s rising e-commerce penetration, improved SME adoption of tech logistics, and a broader shift to organized B2B supply chains.

Final Thoughts

Delhivery’s Q4 FY25 results signal more than just a one-off profit — they reflect a structural turnaround. After years of investment and losses, the company is now poised to build on operating leverage and scale economics.

As India’s logistics sector continues to evolve, Delhivery’s first-ever profitable quarter may well be the inflection point that long-term investors have been waiting for.

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