Delhivery (DELHIVERY) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 was a stable quarter with revenue from services reaching ₹2,190 Cr, up 13% year-over-year, and continued PAT profitability despite one-time adjustments in supply chain services.

• Express Parcel shipments totaled 185 Mn, a 2.5% increase year-over-year, while PTL freight tonnage was 427K tons, up 22.7% year-over-year.

• The business expanded capacity in real estate, people, and vehicles in preparation for the festive season, focusing on operational stability and margin improvement.

• EBITDA stood at ₹57 Cr (2.6% margin), a turnaround from a loss of ₹16 Cr last year, and PAT was ₹10 Cr, compared to a loss of ₹103 Cr last year.

• Approved unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2024.

Financial highlights

• Revenue for Q2 FY25 was ₹21,897.33 million (consolidated), up from ₹19,417.49 million in Q2 FY24; standalone revenue was ₹20,199.63 million.

• EBITDA was ₹57 Cr (2.6% margin), up from a loss of ₹16 Cr last year but down from ₹97 Cr in Q1.

• PAT was ₹10 Cr, marking the second consecutive positive quarter, compared to a loss of ₹103 Cr last year and ₹54 Cr in Q1.

• Cash and cash equivalents stood at ₹5,488 Cr as of September 30, 2024.

• Consolidated net profit for Q2 FY25: ₹102.04 million, compared to a net loss of ₹1,029.41 million in Q2 FY24.

Outlook and guidance

• Management expects continued PAT profitability and margin stability, with growth initiatives in express, PTL, and new product launches to drive incremental share.

• CapEx intensity is expected to decline, with FY25 CapEx at 6.5%-6.7% of revenue and further reduction to sub-6% in FY26.

• Unutilised IPO proceeds of ₹9,316.80 million as of September 30, 2024, earmarked for growth and general corporate purposes.

• Temporary infrastructure, manpower, and fleet were added for the festive season, indicating expectations of higher demand.

• Working capital days are expected to improve by 1-2 days annually over the next few years.