Delhivery shares decline over 4% as freight costs weigh down Q1 FY27 earnings; what investors should know

Logistics services provider Delhivery shares lost more than 4% at the opening bell on Monday, August 10, as investors focused on the company’s decline in overall April to June quarter (Q1) profits for the financial year 2026-27, due to freight costs powering the overall increase in expenses for the period.

After the 9:15 am opening bell, shares of Delhivery declined 4.3% to their early market low of ₹452.50 apiece on Monday’s market, in comparison to ₹473.30 apiece at the previous equity market close last week, as per NSE data.

The company filed its Q1 earnings report with the stock exchanges on Saturday, August 8.

Delhivery shares recovered from their lows during the early market hours, trading 0.99% higher at ₹478 apiece when compared to the previous stock market close levels, as per the exchange data.

NSE filings data also showed that the company’s freight, handling and servicing costs increased by 31% to ₹2,152.16 crore in the June quarter, compared to ₹1,637.78 crore in the same period a year earlier.

Despite an increase in revenues, this surge in costs for the period under review, in turn, impacted Delhivery’s margins and profitability, weighing down the overall net profits in the June quarter of FY27.

How did Delhivery perform in Q1 results?

On Saturday, Delhivery announced that the company has posted a 65% decline in its overall consolidated net profit after tax (attributable to owners) to ₹32 crore for the April to June quarter of FY27, compared year-on-year (YoY) with ₹91 crore in the same period a year earlier.

Although the overall revenue from core operations advanced nearly 28% to ₹2,931 crore in the first quarter, from ₹2,294 crore in the same quarter of the previous year, the overall rise in total expenses dragged down the profits.

NSE filings showed that the total expenses for the period under review surged 29.4% to ₹3,012 crore, compared YoY with ₹2,327 crore in the same period of the previous fiscal year.

The logistics service company’s operational-level earnings before interest, tax, depreciation, and amortisation (EBITDA) declined 4.4% YoY to ₹142 crore in the June quarter, in comparison to ₹149 crore in the same period last year.

While Delhivery’s EBITDA margins contracted by 163 basis points to 4.85% in the period under review, compared to 6.48% in the same quarter of the previous financial year, as per the exchange data.

The company provides its clients with services like transport and supply chain services among other things, catering to more than 43,000 active customers as of the quarter ended June 2026.

Key reason behind margin fall

Analysts from global investment firm Jefferies said that wage and fuel inflation impacted Delhivery’s margins in the June quarter, and the company management estimates the same to recover by the end of the second half (H2) of the financial year 2026-27.

“Notwithstanding near-term margin pressures, industry tailwinds remain intact, with lower Meesho insourcing vs. FY26,” said Jefferies analysts.

In line with the review, JP Morgan analysts said that Delhivery earnings missed their estimates, and that the margins are expected to see a sharp recovery in H2 FY27, a key factor which investors should track.

“We believe margins bottomed in Q1 and should see a sharp recovery in 2H; however, margin delivery will be key to improved investor confidence against the backdrop of peer SHADOWF (not covered) posting 4.9% Adj EBITDA margin in Q1,” said JP Morgan analysts.

While Citibank analysts said that the logistics services provider is well positioned to benefit from any acceleration in the traditional e-commerce industry.

How has Delhivery stock performed?

Delhivery shares have delivered nearly 12% gains to investors in the last three years, after the company was listed on the stock exchanges back in May 2022. NSE data showed that the shares have risen 1.1% in the past one year period.

Although the company shares have risen 17.3% so far in the calendar year 2026, the stock has lost 9.6% in the past one-month, and has been trading flat over the last five trading sessions.

Shares of Delhivery surged to their 52-week high of ₹524 apiece on July 10, 2026, while the 52-week low was at ₹374.45 apiece back on January 21, 2026, as per the exchange data.

The logistics service company’s market capitalisation (m-cap) was at ₹35,625 crore as of the trading session on Monday, August 10, 2026.