Delhivery’s Q4 profit turns positive, but other income remains significant
Revenue growth outpaced expense growth, while operating margin improved 2.97 percentage points YoY and was broadly flat sequentially.
Filed 16 May 2026, 16:45 IST · after market close · Delhivery Ltd (DELHIVERY)
Key takeaways
- Standalone Q4FY26 net profit turned positive at Rs 79.8 cr from a Rs 16.54 cr loss a year earlier, helped by a -4.62% tax rate.
- Revenue grew +32.13% YoY while expenses grew +27.94%, lifting operating margin by 2.97 percentage points to 8.92%.
- Other income contributed 67.92% of pre-tax profit, making the Rs 79.8 cr profit less purely operational.
Price around the results
Revenue growth translated into a positive standalone quarter
Delhivery’s standalone revenue grew +32.13% YoY, while operating profit nearly doubled as expenses grew more slowly at +27.94%. Sequential momentum was modest, with revenue up +2.15% and operating profit up +2.79%. Net profit also rose +5.98% QoQ, helped by a -5.45% decline in interest expense and a tax credit.
Margin improved, but profit quality needs scrutiny
Costs grew slower than revenue YoY, expanding operating margin by 2.97 percentage points; sequentially, the margin improved only 0.05 percentage points because revenue and expenses grew at almost the same pace. Other income was 67.92% of pre-tax profit, while the -4.62% tax rate also supported reported net profit. Operating margin of 8.92% remained 22.23 percentage points below the 31.15% median for 12 reported Services-sector peers, placing Delhivery fourth from the bottom.
Margin recovery continued after the Q2FY26 dip
Operating margin rose from 6.46% in Q2FY26 to 8.87% in Q3FY26 and 8.92% in Q4FY26, marking two consecutive quarterly improvements after the Q2 decline. Management said it has an annual business-potential pipeline of approximately Rs 1,800 cr across Auto & Industrial, FMCG, Consumer and E-Commerce. The company also said autonomous vehicles and drones are under development and that it has set up a dedicated Robotics Lab; it separately flagged Ecom Express integration costs during the reported periods.
The initial market reaction was negative but broadly typical
The stock fell -4.20% on the first trading session after the results and was down -4.27% after five sessions. That was close to the 4.17% median absolute move after its previous eight results, while the historical direction has been negative more often, with five down reactions versus three up reactions. The stock was down -7.64% after 15 sessions before showing a +6.72% move after 30 sessions.
Q4FY26 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,672 cr | ₹2,615 cr | +2.15% | +32.13% |
| Other income | ₹52 cr | ₹49 cr | +6.15% | +43.37% |
| Expenses | ₹2,433 cr | ₹2,383 cr | +2.09% | +27.94% |
| Operating profit | ₹238 cr | ₹232 cr | +2.79% | +98.27% |
| Operating margin (%) | 8.92% | 8.87% | — | — |
| Interest | ₹33 cr | ₹35 cr | -5.45% | -2.39% |
| Depreciation | ₹181 cr | ₹171 cr | +6.07% | +29.98% |
| Profit before tax | ₹76 cr | ₹75 cr | +1.29% | — |
| Tax | ₹-4 cr | ₹0 cr | — | — |
| Net profit | ₹80 cr | ₹75 cr | +5.98% | — |
| EPS (₹) | ₹1.07 | ₹1.01 | +5.94% | — |
Operating margin of 8.92% compares with a Services sector median of 31.15% across 12 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -4.20% | -4.23% |
| Next session | -3.44% | — |
| 5 sessions | -4.27% | -5.91% |
| 15 sessions | -7.64% | — |
| 30 sessions | +6.72% | — |
Volume on the results session was 2.23× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The company has an annual business potential pipeline of approximately ₹1,800 crore across several industries.
Expansion
- The company is developing autonomous vehicles and drones.
- The company has set up a dedicated Robotics Lab to accelerate automation research and development.
New orders
- The company has an approximately ₹1,800 crore annual business potential pipeline across Auto & Industrial, FMCG, Consumer and E-Commerce.
Problems & risks
- The company incurred Ecom Express integration costs during the reported periods.
What to watch
- Whether operating margin holds above 8.92% after two consecutive quarterly improvements.
- Whether other income remains a material share of pre-tax profit after contributing 67.92% in Q4FY26.
- Whether expense growth stays below revenue growth after the YoY spread of +32.13% versus +27.94%.