Why Did Delhivery Experience Losses Despite a 17% Revenue Increase in Q2 FY26?
Synopsis
Delhivery has reported a significant revenue increase, yet it faces losses due to rising operational costs. This paradox raises questions about the logistics industry's profitability amid growing demand.
Key Takeaways
Delhivery reported a 17% revenue increase in Q2 FY26.
Despite revenue growth, the company faced a loss of Rs 50 crore.
Expenses rose significantly, driven by higher operational costs.
Delhivery's market capitalization stands at Rs 36,335 crore.
The company achieved record order volumes in September and October.
New Delhi, Nov 5 (NationPress) - The logistics company Delhivery announced a 17% year-on-year revenue growth for Q2 FY26, but faced losses as expenses outpaced revenue growth, as stated in an exchange filing on Wednesday.
Revenue from operations for the Gurugram-based firm reached Rs 2,559 crore in Q2 FY26, an increase from Rs 2,190 crore in the same quarter last year.
Total revenue, including Rs 92 crore from non-operating activities, climbed to Rs 2,651 crore, according to the filing.
However, costs associated with freight handling and services—Delhivery's most significant expense—rose by 12.5% to Rs 1,843 crore, constituting 68% of total expenses.
As a result of expenditures surpassing revenues, Delhivery reported a loss of Rs 50 crore for Q2 FY26, in contrast to a profit of Rs 10 crore in Q2 FY25. Additionally, its profit for the first half of the fiscal year dropped by 37% to Rs 40.5 crore in H1 FY26, down from Rs 64.5 crore in H1 FY25.
Overall expenses surged by 18% to Rs 2,708 crore in Q2 FY26, compared to Rs 2,294 crore in Q2 FY25. The company attributed this increase to elevated legal, depreciation, and operational costs, despite witnessing a 22% reduction in employee benefit expenses to Rs 425 crore.
Delhivery's primary revenue streams include its logistics services, which encompass warehousing, last-mile logistics, and the design and implementation of logistics management systems.
The company’s stock closed at Rs 486 at the end of the last trading session, leading to a market capitalization of Rs 36,335 crore.
In its communication to shareholders, Delhivery noted that it achieved the highest monthly order volumes of over 100 million e-commerce and freight shipments in both September and October, with a peak single-day dispatch of 7.2 million orders.
In June 2025, Delhivery acquired a 99.44% stake in the e-commerce logistics provider Ecom Express for a cash consideration of up to Rs 1,400 crore.
Point of View
It is essential to recognize the challenges faced by companies like Delhivery in the logistics sector. While revenue growth is a positive sign, the rising costs highlight the complexities of maintaining profitability in a fiercely competitive market. As we continue to witness fluctuations in operational expenses, it is crucial for stakeholders to address these issues to ensure sustainable growth.
NationPress
11 May 2026
Frequently Asked Questions
What was Delhivery's revenue for Q2 FY26?
Delhivery's revenue for Q2 FY26 was Rs 2,651 crore, including Rs 92 crore from non-operating activities.
Why did Delhivery incur losses despite increased revenue?
The company experienced losses as costs, particularly in freight handling, rose significantly, outpacing revenue growth.
What were Delhivery's total expenses in Q2 FY26?
Delhivery's total expenses for Q2 FY26 rose to Rs 2,708 crore, an 18% increase compared to the previous year.
What major acquisition did Delhivery make recently?
In June 2025, Delhivery acquired a 99.44% stake in Ecom Express for up to Rs 1,400 crore.
How did Delhivery's profit change in H1 FY26?
Delhivery's profit dropped by 37% to Rs 40.5 crore in H1 FY26 compared to Rs 64.5 crore in the same period the previous year.
