Delhivery Revenue Forecast for FY25
Delhivery, India’s leading logistics company, expects its rapid commerce segment to generate revenue between INR 80 Cr and INR 100 Cr in the financial year ending March 2025 (FY25). This projection highlights the company’s aggressive expansion in the quick commerce sector.
Rapid Commerce Expansion of Delhivery
During the company’s Q3 call, CEO Sahil Barua shared insights about Delhivery’s rapid commerce business. The service, offering two-hour deliveries, is already operational in Bengaluru, Hyderabad, and Chennai. Currently, the segment has onboarded two core customers, with 15 more expected within this quarter. This expansion aligns with the company’s strategy to scale operations and meet the rising demand for quick deliveries.
Strong Performance of Dark Stores
Delhivery’s dark stores have shown promising results. Some locations process nearly 500 orders daily, just 45 days after launch. The breakeven point stands at 700-800 orders per day, and several stores are approaching this mark. These numbers reinforce confidence in the company’s rapid commerce model.
A few months ago, Delhivery introduced multi-tenant dark stores for fast in-city deliveries, specifically for e-commerce brands. Barua recently stated that this service targets the top eight cities, focusing on selected SKUs and customer needs. Although its contribution to the overall e-commerce sector remains small, this initiative plays a key role in enhancing services for D2C brands.
Financial Performance and Challenges
Delhivery faced margin pressures in Q2 and Q3 due to fixed investments. The company invested in a new facility in Bengaluru and incurred higher fleet costs in metro cities during peak demand. These factors impacted revenue by INR 12-15 Cr. However, Delhivery remains optimistic about achieving stable EBITDA margins of 18-20% in the future.
Market Consolidation and Competitive Landscape
Barua highlighted challenges in the logistics industry, emphasizing the need for consolidation. He pointed out that new capital inflows into the express parcel sector have slowed, forcing companies to reassess their models. Delhivery anticipates benefiting from these structural changes as its market share continues to grow.
Q3 Financial Results
Earlier today, Delhivery reported a 114% increase in consolidated net profit. It reached INR 24.98 Cr in Q3 FY25, up from INR 11.7 Cr in the same quarter last year. Operating revenue rose by 8% to INR 2,378.29 Cr, compared to INR 2,194.46 Cr in Q3 FY24. However, EBITDA slightly declined to INR 102 Cr from INR 109 Cr during the same period.
Meanwhile, DTDC has also entered the rapid commerce sector with its new initiative, DTDC Express. At the end of today’s trading session, Delhivery’s stock closed 1.55% lower at INR 316.75 on the BSE.
