Revenue rises 28 per cent to Rs 2,930.7 crore, while labour disruptions and higher fuel and operating costs weigh on profitability
Logistics services provider Delhivery reported a 65 per cent year-on-year decline in consolidated net profit to Rs 31.9 crore for the first quarter of financial year 2026-27 (Q1 FY27), compared with Rs 91 crore in the corresponding period last year. The company’s profit was also lower than the Rs 72.3 crore recorded in the previous quarter.
The Gurugram-based company said labour availability was affected by elections and climate disruptions during the quarter, while statutory changes to labour codes and higher operating costs added to pressure on profitability.
Labour And Fuel Costs Pressure Margins
Revenue from operations increased 28 per cent year-on-year to Rs 2,930.7 crore in the quarter ended June, compared with Rs 2,294 crore in Q1 FY26. On a sequential basis, revenue rose from Rs 2,850 crore in Q4 FY26.
“Q1 environment was particularly challenging owing to volatile labour availability owing to elections and climate disruptions, geopolitical uncertainty and statutory changes to labour codes, requiring us to take heightened measures to support network service quality in the form of buffer staff and network capacity,” the company said in its letter to shareholders.
Delhivery also reported higher fuel-related expenses during the quarter. The company said the increase in global crude prices pushed up petrol and diesel prices, while also raising the cost of crude-related consumables.
Automation To Tackle Labour Challenges
Delhivery’s total expenses increased 29 per cent year-on-year to Rs 3,011.6 crore in Q1 FY27, compared with Rs 2,326.6 crore in the year-ago period. Expenses were also higher than the Rs 2,853.1 crore reported in Q4 FY26.
To address labour availability constraints and rising labour costs, the company said it is expanding the use of automation across its transportation and fulfilment operations.
“To de-risk from labour availability challenges and increasing labour costs we continue to develop and deploy customized automation systems (ASRS, AMRs, pallet shuttles) across transportation and fulfillment operations. We have also launched Delhivery Maps, to convert proprietary GIS data into new revenue streams. Together, we believe these investments position us well to deliver sustained performance in an evolving and complex operating environment,” the company said.
Delhivery said its automation initiatives include automated storage and retrieval systems (ASRS), autonomous mobile robots (AMRs) and pallet shuttles. The company has also launched Delhivery Maps, which uses its proprietary geographic information system (GIS) data to create potential new revenue streams.
Delhivery shares closed 0.26 per cent higher at Rs 471.10 apiece on the BSE on 8 August.
