Delhivery Shares Jump Over 9% After Q4 Profit Turns Positive; FY24 Earnings Show Major Turnaround

Delhivery Shares Soar Over 9% as Q4 Profit Swings to Black; Full-Year Earnings Mark Strong Turnaround

Introduction: Delhivery Surprises the Street

In a powerful display of resilience and strategic recalibration, Delhivery Ltd., one of India’s premier logistics and supply chain services companies, delivered a blockbuster Q4 result for FY24. The company stunned markets by swinging to a net profit for the quarter ended March 2024—its first quarterly profit since its listing—sending its stock up by over 9% intraday.

The surge not only reflects strong investor sentiment but also underscores the larger story of operational efficiency, technological adaptation, and disciplined growth. Delhivery’s earnings report, released on Friday, revealed key improvements in core financials, validating the company’s forward-looking strategy amid a challenging macro environment.

Q4FY24: Breaking Down the Numbers

Delhivery reported a net profit of ₹11.7 crore in Q4FY24, a massive turnaround compared to the net loss of ₹159 crore in the corresponding period last year.

Key Highlights from Q4FY24:

• Revenue from operations: ₹2,076 crore, up 12% YoY

• Adjusted EBITDA: ₹125 crore versus a loss of ₹72 crore YoY

• EBITDA margin: 6% compared to -4.2% YoY

• Total shipments handled: 192 million

• Service lines performing well: PTL (Partial Truckload), Express Parcel, and Truckload services

This swing to profitability was largely fueled by higher volume growth, improved asset utilization, and cost optimization strategies adopted across warehousing, transportation, and last-mile delivery operations.

Stock Market Reaction: A Bullish Breakout

Delhivery shares on the NSE surged over 9% during early trading hours following the announcement, eventually settling at ₹456.70, up ₹38.20 from the previous close. Volumes witnessed a significant uptick, with nearly 1.8x average daily trading volumes recorded.

Market analysts were quick to revise their price targets. Some brokerages raised their outlook, citing profitability visibility, a disciplined capex approach, and narrowing operating losses in legacy segments.

This is particularly noteworthy considering Delhivery’s stock has remained under pressure since its IPO in May 2022. The recent performance is seen as a critical confidence booster.

Full-Year Performance (FY24): Signs of a Sustained Turnaround

Delhivery’s FY24 performance marks a significant turnaround compared to FY23. The company posted a net loss of ₹83 crore for the full year, down sharply from a loss of ₹1,007 crore in FY23—an improvement of over 90%.

FY24 Metrics at a Glance:

• Annual revenue: ₹7,652 crore, up 12.4% YoY

• EBITDA: ₹262 crore compared to a loss of ₹412 crore in FY23

• Adjusted PAT Margin: Nearly breakeven, signaling future profitability

• Cash Reserves: ₹6,136 crore as of March 2024, ensuring liquidity buffer

With the company aggressively shifting gears toward sustainable margins and profitable expansion, the FY24 earnings have set the stage for a more bullish FY25.

Operational Highlights: From Tech to Transport

Delhivery’s CEO, Sahil Barua, emphasized the role of data intelligence and automation in driving down operating costs. Over the last year, the company implemented AI-led route optimization, warehouse robotics, and predictive delivery modeling—bringing greater visibility and precision to its value chain.

Segment-wise analysis:

• Express Parcel Services: Grew at 14% YoY, driven by festive demand and e-commerce partnerships

• PTL & TL Freight: Increased 22% YoY due to B2B momentum and intercity distribution demand

• Supply Chain Services & Truckload (Forward & Reverse): Registered higher yields and new client additions

The firm also onboarded over 1,000 SME clients and forged several strategic alliances with regional brands to diversify its shipping footprint.

Technology and Infrastructure: Future-Ready Logistics

Delhivery’s investment in automation and AI paid off. The company’s Orion platform—an end-to-end shipment lifecycle manager—enabled real-time tracking, minimized delays, and offered customers better visibility.

The newly expanded mega-gateways in Bengaluru and Bhiwandi are now operational and have improved processing speed by 20%, according to internal metrics.

As part of its long-term vision, the company is exploring EV (electric vehicle) adoption for last-mile delivery in metro cities and is also investing in green warehouses with solar rooftops to improve ESG compliance.

Investor Confidence Returns: Analysts Turn Optimistic

Brokerages like ICICI Securities, HDFC Securities, and Motilal Oswal issued positive commentary post-results. Revised price targets range between ₹480 and ₹520, citing improved profitability trends, solid revenue growth, and a leaner cost structure.

What investors liked:

• Visibility into profitability

• Controlled expenses and optimized logistics

• A strong balance sheet with no debt pressure

• Tech-centric execution model

However, most analysts have advised a "Hold with Positive Bias" strategy until two more profitable quarters confirm the sustained turnaround.

Challenges & Headwinds: Roadblocks Remain

While FY24 signals a new dawn for Delhivery, challenges persist. The company still operates in a low-margin, high-volume industry with fierce competition from Blue Dart, Ecom Express, and traditional logistics players.

Key risks include:

• Pressure on pricing in express parcel segment

• Rising fuel and freight costs

• Compliance overheads amid evolving e-commerce regulations

• Sluggish global shipping impacting international volumes

Moreover, scalability will require careful capex decisions, especially in Tier-II and Tier-III cities where unit economics are thin.

Strategic Roadmap for FY25: What Lies Ahead

Delhivery’s roadmap for FY25 focuses on expanding market share, improving margins, and entering new verticals like pharmaceutical logistics and temperature-controlled shipping.

Plans include:

• Launch of pharma cold chain delivery by Q3FY25

• Deeper integration of AI for demand prediction

• Geographic expansion in Northeast India and export corridors

• Increased cross-border logistics tie-ups with Southeast Asia firms

Sahil Barua also mentioned in the earnings call that Delhivery is exploring potential acquisitions in warehousing automation and route optimization startups to sharpen its tech edge.

Delhivery's Turnaround is a Case Study in Patience and Precision

Delhivery’s return to profitability is not just a financial milestone—it is a validation of its business model, tech-first strategy, and operational discipline. After quarters of skepticism and sliding valuations, the logistics major is finally rewriting its story.

For investors, this isn’t just about one profitable quarter; it’s about a trajectory. Delhivery is positioning itself as a future-ready, tech-enabled logistics powerhouse. If it sustains this momentum, it may well become the gold standard in India’s $200-billion logistics industry.

Disclaimer:

This article is for informational purposes only and does not constitute financial advice. Please consult your financial advisor before making investment decisions.