Delhivery’s profitability remained under pressure in Q1. Macroeconomic shocks and fixed cost structures tested the unit economics of the logistics giant during the quarter, even as healthy revenue growth, improving EBITDA and growing volumes cushioned some of this blow.
Here is a quick overview of Delhivery’s Q1 FY27 performance:
Profit Pressure: The sharp profit decline came as labour shortages, fuel costs, weather disruptions and revised statutory minimum wages across four states weighed heavily on Delhivery’s Q1 earnings. As a result, it had to splurge to deploy additional staff and network capacity to maintain service quality.
Volume Game: Nevertheless, Delhivery
continued to see healthy traction across its transport businesses. Express parcel volumes grew strongly, supported by market share gains among existing customers and new client additions across D2C, SME and consumer segments. Similarly, part-truckload (PTL) volumes also improved, aided by the expansion of its business development teams across regions.
New Bets: Delhivery also continues to build new growth engines. The logistics giant’s B2C offering (Delhivery Local) crossed an ARR of ₹100 Cr during the quarter, while the company lined up ₹50 Cr to bolster its NBFC arm. Alongside, it also launched an AI-powered tool to reduce return-to-origin shipments, commissioned an automated storage system and introduced AI-native Delhivery Maps.
Road Ahead: Going forward, the listed giant expects pricing revisions to offer some relief in the coming quarters. It also projects its express parcel volumes to grow by 20-30% and PTL volumes by 18-22% in FY27, supporting its top line growth. Meanwhile, Delhivery Local appears poised to close the ongoing fiscal with an ARR of ₹200 Cr.
As the logistics giant bets on tech-driven cost optimisations to offset persistent inflation, here is how Delhivery fared on the financial front in Q1…
India’s last-mile delivery sector is under constant pressure to become faster and cheaper, but switching to EVs is not as easy as replacing petrol bikes. Businesses also need financing, maintenance and fleet management. Enter Optimotion, a startup trying to fix this gap.
Beyond Selling EVs: Founded in 2024, Optimotion is building an electric two-wheeler fleet for last-mile delivery operations. Rather than manufacturing vehicles, the bootstrapped startup works as a fleet operator and brings together EVs, financing, servicing and operational support under one roof.
An Ecosystem Approach: Optimotion partners with vehicle manufacturers, financing companies and service providers to make EV adoption easier for logistics and delivery companies. It also works to remove the operational complexity that often comes with electrification, including procurement, upkeep and fleet coordination. This model allows clients to access electric mobility without building the entire infrastructure from scratch.
Looking Ahead: India’s last-mile delivery market is projected to cross $14.45 Bn by 2031, creating room for fleet operators that can reduce operating costs for businesses while improving delivery efficiency. The startup’s challenge will be to scale its fleet, maintain uptime and build a sustainable business without owning the manufacturing layer. With much on its plate, can Optimotion become the mobility partner of choice for delivery companies?
India’s instant home services space is booming, but the real battle has shifted from growth to unit economics. From chasing lower CAC to higher worker utilisation, here is how ultrafast home services players are trying to crack the category unit economics…
Source: Inc42 - Startups
