Hello everyone. Good evening. Welcome to the Q2 FY 2026 Earnings Call of Delhivery Limited hosted by Ambit Capital. Before we start, Delhivery would like to point out that some of the statements made in today's call may be forward looking in nature and a disclaimer to this effect has been included in the earnings presentation shared with you earlier. Kindly note that this call is meant only for investors and analysts. If there are representatives from the media, they are requested to kindly drop off this call immediately to discuss the results. I am pleased to welcome Mr. Sahil Barua, MD and Chief Executive Officer, Mr. Amit Agarwal, Chief Financial Officer, Mr. Ajith Pai, Chief Operating Officer, Ms. Vani Venkatesh, Chief Business Officer, Mr. Varun Bakshi, SVP and Head of Part Truck Load, Mr. Navneet Kumar, SVP and Head of Supply Chain Services, and Mr. Vivek Pabari, SVP and Head of Corporate Finance at Delhivery. As a reminder, all participants' lines will be in listen-only mode and participants can use the raise hand feature to ask any questions post the opening remarks. Now I invite Mr. Sahil Barua to take us through the key highlights of this quarter, post which we'll open up for Q and A. Thank you, Dhruv. Thank you, Ambit Team. Welcome to all of you who've joined, and thank you for joining this evening. As always, we will begin with a short presentation and then take questions. Before we begin, as some of you are aware, we've been in the process over the last couple of quarters of rejuvenating the Delhivery board. As part of this, Mr. Yashish Dahiya from Policybazaar and Professor Padmini Srinivasan joined our board last quarter. In this quarter, as you would be aware, Mrs. Aruna Sundararajan will be stepping down from the board of Delhivery. On behalf of the entire management team and the board of Delhivery, I would like to extend our deepest gratitude. Mrs. Sundararajan has been on the Delhivery board for the last three years, and we benefited immensely from her guidance. Also, I'd like to congratulate formally Mr. Vivek Pabari who will be taking over from Amit Agarwal as chief financial officer of the company and also place on record our gratitude to Amit. Amit has been one of the longest serving members of the Delhivery team having joined us on the 4th of August in 2012 and playing the role of CFO with great distinction and also the key architect of Delhivery going public. Going forward, Mr. Pabari will be leading the finance function. He's already the head of corporate finance and investor relationship. As a brief summary of the quarter before we begin, this has been a quarter of tremendous growth for the company. As you can see, we completed the acquisition of Ecom Express in Q2 and Express volumes have grown 32% year- on- year. We broke several records along the way, crossing over 100 million transportation orders in September which has continued in October and also reached our peak dispatch of 7.2 million orders in a single day during this festive peak period. The particularly heartening part is that these records were achieved also with complete operational stability which has essentially given us an excellent base for quarter three in both the Express and the PTL businesses. Profitability of the core business has also remained absolutely stable despite, you know, a shift in volumes due to the GST period. Overall, from an integration standpoint with Ecom Express, we will recognize in this quarter about INR 90 crore of integration costs and are well within our overall envelope of INR 300 crore as we had guided towards at the time of the acquisition. To take you through the presentation, I'll invite Vani, who is our Chief Business Officer, to sort of go through the highlights of the quarter. Vani, over to you. Thank you, Sahil. Thank you, Dhruv. I'll quickly run us through the numbers. Our revenue from services came at about INR 2,546 crore this quarter. That's a significant YoY growth of about 16% and a quarter growth of about 11%. This came in with an EBITDA of INR 150 crore. Again, massive jump. Bear in mind that this quarter also takes in the peak related costs. Compared to Q2 last year where we had about INR 57 crore, this has jumped up to INR 150 crore. That's a 5.9% EBITDA margin. Our express parcel shipments showed significant growth. We ended the quarter at about 246 million express parcel shipments. That's a huge 32.5% growth YoY and 18% growth quarter- on- quarter. PTL continued to demonstrate stable steady growth. It's at about 477,000 tons. Overall, we ended the quarter with a PAT of about INR 59 crore, which is 2.2% compared to the same quarter last year where we were at about 0.4%. It is a significant jump in the number of basis points in the profit expansion agenda that we had. The same reflects in H1 as well. INR 4,840 crore of revenue, which is 11% YoY growth. We had INR 299 crore of EBITDA. Again, a 6.2% EBITDA percentage. 453 million of express parcel shipments, 935,000 tons of PTL freight tonnage, and INR 150 crore of PAC. Our cash and cash equivalents keep us in a comfortable position. We are at about INR 4,200 crore of cash and cash equivalents as we end the quarter. If you can move a slide forward. Coming to key operational metrics, our pin code reach has been consistent at 18,830. We have increased the number of active customers significantly. Same time last quarter we were at about 38,000. That's a 10,000 increase from there. Same time in Q1 we were 43,000. So again a 5,000 increase from last quarter. Infrastructure we've expanded to about 22.05 million sq ft. A small part of it is for peak related but overall it's shown a little growth. We have about 123 gateways, 50 automated centers. Slight increase in each of these count sorters count has slightly increased to about 74. Freight service centers has increased to about 141. Processing centers have been largely constant at about 160. Our express delivery centers and partner centers together are at about 4,600, 4,700 odd. That's shown a slight increase including a little bit for the peak. We've had a team size of 75,000. Again you see some increase which is peak related and partner agents of about 64,000 managing a fleet size of about 18,600 odd fleets. Right. So that's roughly the operational metrics that we are at. We can move forward from a performance point of view. Our revenue from services as I mentioned earlier is about INR 2,546 crore. It's a healthy 16% YoY, 11% QoQ growth. You'll see that the contribution of express has scaled up to about 63%. PTL has been largely stable in the 21%-22% range. Right. The rest of the businesses continue to grow profitably. Our express parcel revenue grew about 24% YoY and the tonnage grew about 32%. We ended up delivering about INR 1,611 crore in express parcel via 246 million ship. This was a very healthy all-round growth. We obviously benefited from the acquisition that we had. In addition to that, there has been organic growth as well. We have seen growth across segments, be it the e-commerce players, the D2C players, or parcels from small businesses. We have seen all-round growth in this segment. PTL again, freight revenue grew 15%, got about INR 546 crore, and the tonnage has grown about 12%. PTL freight revenue continues to trump tonnage, which means it is coming in at a very healthy yield. The team has diligently been expanding the margins here and making sure that it's a profitable growth. We can move forward. Coming to supply chain services, supply chain services, we'll find a blip in the revenue. The revenue is at about INR 170 crore. This is a very calibrated conscious blip as we explained during the last analyst call. Also, we've been careful about what contracts to be in and what segments and what industry sectors to be in and as a consequence of that you will see in the subsequent section that the profitability has grown quite substantially. Our idea is to make sure that we have a very healthy profitable mix, a profitable construct which we can scale this business up to. Supply chain services from a revenue point of view you will see that it's a calibrated drop of about 14% YoY and you'll see a significant increase in the margins in the subsequent page. FTL service ended at about INR 150 crore in Q2 and our cross-border services ended up at about INR 38 crore in this quarter. If we can move down from a service line, if you look at it from a service line profitability point of view, I call your attention to the box which is shaded Q2 FY 2026. Overall revenue from services as you see is about INR 2,536 crore. Our margin percentage has been at 13.2%. Bear in mind that again Q2 is a quarter where we have made peak related investments. Compared to Q2 FY 2025, 9.3%, there is a significant expansion in margin, bringing it to about 13.2%. express parcel margins are again at about INR 246 crore, which is a good 15.3%, stable, similar to a slight increase from Q2 of about 15%. Last year's Q2 was about 15.1%. If you look at part truckload, again, it is an 8.5% margin. Notice that in part truckload in the first half of FY 2026, we have clocked in about INR 100 crore of margin, which is equivalent to the full year last year. So very much in the right direction, yield increasing, and we are looking forward to significantly more expansion in the coming quarters as well. Similarly, supply chain services, it's been a solid story from a profit orientation point of view. The business has been pivoted to good profitability. You will find that it scaled up from 7.2% to about 12.8%, and if you look at the same time last year, same quarter last year, it was at a - 4.4%. It's been a significant, significant focus, concerted effort to take it from a - 4.4% to a 2.1% to a 5.4% to a 12.8% this time. If you look at the absolute margins, which is at about INR 22 crore and INR 15 crore in the last quarter, this half itself, this business has done about INR 36 crore of, has clocked in about INR 36 crore of margin, which is almost twice all of last year. Overall, if you look at the core businesses, we are in a very healthy state. Our core businesses are growing healthily. The orientation towards profit has been solid. All the metrics are in the right direction as far as the core businesses are concerned. Coming to corporate overheads, our corporate overheads have been at about 9.3% as a percentage to revenue. It is largely in the same ballpark range, 9.1%-9.3%. We've seen some increase in wages and we've put in some investments in technology as well as tech also sees a little bit of uptick on account of peak and the volumes related to peak, but overall it's still at a 9.3% and in the right direction as far as investments in new services are concerned. As we discussed last time during the analyst call, we've invested in two new businesses. One is the Rapid Commerce business where we do a sub- two- hour same- day delivery. Currently we are present in three cities through 20 dark stores and that business continues to scale up well. The other one is an on demand intra-city service where we have initiated operations in Ahmedabad, Bangalore and NCR. Both of these businesses continue to scale well and our investment this quarter has been about INR 15 crore in these businesses in line with our plan. All in all our adjusted EBITDA ends at about INR 83 crore for this quarter compared to INR 10 crore in Q2 FY 2025. We've scaled it up from same time last year from about 0.5% to 3.3% and we've good line of sight for similar expansion to continue. Also to be borne in mind is that this has been a unique year where some of the peak related benefits will actually flow in in October given that the peak festive season actually started at the tail end of September. If we look at the profit after tax trajectory, our profit after tax has again shown consistent expansion. Overall for Q2 FY 2026 we've clocked in INR 59 crore of PAT compared to INR 10 crore in Q2 last year. Again a significant movement. If you look at the overall trajectory from about - 4.4% in Q1 FY 2024 and - 5% in Q2 FY 2024, it jumped last year to about 0.4% and again it has jumped this year to about 2.2%. The focus on profit expansion and the focus on scaling up business with the right levers has played well for us and we are very, very well positioned for the upcoming quarters. Quick update on Ecom Express acquisition. As you know, acquisition was completed on July 18, 2025. We paid a final purchase consideration of about INR 1,369 crore. Business-wise, the volume manifestation at Ecom ceased during the first quarter with non-express businesses exit being underway. Now the revenue transition is largely completed. Net ecommerce Ecom revenue for this quarter was about INR 13 crore. Network rationalization plan has been completed. We've retained seven facilities with about 1.3 million sq ft of area. There are unabsorbed facilities still leased at Ecom total to an area of just 1.1 million sq ft and they are primarily servicing Ecom's non-express businesses being exited financially. Monthly corporate overheads at Ecom have reduced by 85% from deal announcement time till end of Q2 2026. Assets worth INR 100 crore have been retained on Delhivery consolidated books for long-term usage and integration cost was about INR 90 crore in Q2 2026. It's well within the original estimate. Overall on Ecom we are quite happy on multiple counts. One is from a customer retention and the revenue retention point of view. We had indicated last time that our business case was based on having about a 30% retention. We are well over that. That's one. The integration has been seamless. We haven't had any issues from a service or a customer integration point of view and the integration costs are also well within our original estimate. All in all it's been a good seamless transition. Now coming to the working capital, we've demonstrated continued improvement in working capital. In particular, there's been very disciplined management of collection, there's been tech usage in claims and disputes resolution, all of which is translating in the numbers that you see on the page. As of now we are actually under 20 days, which has been the best ever in terms of net working capital days. We've been. We have also been calibrated in our CapEx spend and in our CapEx intensity. If you look at H1 FY 2026, we spent about 5.1% compared to 6.6% same time last year. Typically, we have seen that the investments are heavier in H1 compared to H2. We expect to end the year even better. We are directionally trending in the right direction with our long-term goal of getting to about 4% CapEx intensity. That is on the capital expenditure overall. In summary, yeah, it is a highly positive quarter for us. The integration has been successful, the volumes have trended up very positively, and most importantly, we are very well set up for the subsequent quarters. Some of the conscious calls we have taken in terms of pivoting businesses to profitability have set us up well for the subsequent quarters. Largely we like where we have landed and how we are set up with that. I hand this over for any questions and answers. Thanks, Vani. We'll open the session for Q& A. Anyone who wishes to ask a question can raise their hand. The first question is from the line of Sachin Salgaonkar. Sachin, if you could just also speak about your organization name. Thanks. Thank you. This is Sachin Salgaonkar from Bank of America. Three questions. First question, again wanted to understand a bit more on express parcel margins. Last quarter before the acquisition of Ecom Express, your margins were 16%. Your shareholder letter does indicate service EBITDA margins are expected to be in the range of 16%-18% by end of 2026. How should we think about it? At the low end, are there no benefits from the potential acquisition of Ecom Express? At the high end, it's more like a 2 percentage point benefit in terms of acquisition of Ecom. Because one would have ideally thought, given the fact that synergies are high, margins could have, you know, further inched up. Let me pause here and then I'll move on to other questions. Sachin, why don't you go ahead and ask all three questions, I'll answer them together. Got it. You know, of course a small follow up in this question is what you guys are seeing from a next 24- month kind of a margin perspective. Is that a conservative way in terms of, you know, how you guys are looking at it or, you know, one should think about an upside risk to that. That is the first question. Second question, wanted to better understand about the INR 300 crore kind of envelope in terms of integration cost you guys talked about. Ideally in acquisitions we do see these costs being front end loaded versus, you know, distributed over a few quarters. Any broad understanding or color in terms of how we could think about this entire distribution of INR 300 crore cost? Because this quarter we did see a INR 90 crore cost. I want to understand that, you know, is it going to be more backend loaded or spread across the board and third supply chain margin. While the opening remarks and your shareholder letter did mention about margins, what I wanted to understand is what has changed for margins to move so drastically up, let's say from 7.2% to 12.8%. Anything structural which has happened out here, that's where the margins are moved out there. Yeah, those are three questions. Thank you. Super. Thank you, Sachin. Let me begin with the first one in terms of margins, normative margins 16%-18% in the express business, you know, we've maintained this for a while. This has always been based on the idea that beyond 18%, if the company feels it is necessary and if basis our client conversations, we believe there is additional share of wallet for us to be gained. We typically tend to pass a certain amount of pricing benefits back as I mentioned in the past, as the competitive intensity in this sector has reduced, number one. Number two, as sort of inflation has caught up with other players in the market, the necessity for us to pass on these benefits has reduced year- on- year. Obviously with the acquisition of Ecom Express and a more stable industry structure, the need for us to pass this on obviously is lower than before. There is no structural reason why margins gap out at the 18% mark. Incremental margins are significantly higher than the 18% as we start gaining volume scale. Realistically, yes, in the express business over time, if we do not pass these benefits on fully, margins can inch up beyond the 18% range as well. You are not seeing the uptick in Q2 for two reasons. One is a reasonable portion of the volume actually has shifted into October because as we pointed out in the shareholder note, the announcement on the change in GST rates pushed out volumes by about seven days. We carried an extra cost of somewhere about INR 7 crore because we were building capacity in September. When we look at the profitability over the September and October time frame, the profitability for the express business is well in line with our overall expectations in terms of the next 24 months. I think we believe a couple of things. One is, I think you can see, you know, and this is a discussion we've had in multiple analyst calls in the past two years, two and a half, three years that as industry structure consolidates, it obviously, we believe as the market leader, it consolidates favorably towards us. Our overall volume growth, as you can see, has been 32% year- on- year. The e-commerce industry has not grown 32% year- on- year, obviously. This is market share gain. We expect that our competitive position actually will improve in the years ahead. As a consequence, I think, you know, as our, as we continue to gain volume scale in the express business and we continue to grow our heavies business, there is a possibility for margins in this business to grow first of all easily obviously to the 18% point and then from there, you know, depending on sort of what we can gain in terms of shadow wallet, possibly even beyond the 18% in terms of the integration cost. The INR 300 crore integration cost was our estimate at the time that we did the deal. This was obviously based on our assessment of lock ins on the real estate and facilities, the integration costs of people and certain contracts that Ecom Express had signed that we needed to wind down. INR 90 crores of that integration cost has been incurred already. We will have approximately INR 100 crores-INR 110 crores of integration costs over the next two quarters. As things currently stand, our belief is that the total integration costs will be materially lower than the INR 300 crores that we had originally forecast. We have been able to consolidate the Ecom Express network faster than we originally thought about it. We also have obviously had the benefit of increased volumes, which means some of the facilities we have been able to repurpose and bring into the Delhivery network productively. In fact, I think one bulk of the integration costs, or rather for all practical purposes, almost all of the integration costs will be within fiscal 2026. You have seen the impact in Q2. There will be some in Q3 and Q4, but beyond there will not be material integration costs and B it will be materially lower than what we originally planned in terms of the supply chain services business. You know, we've discussed this in the past and the approach is in some senses no different from what we've taken even to the PTL business as we were sort of restructuring it over the last three years, which is to first get the profitability of the business right and then to push for growth. The change indeed is structural. This has come from significant improvements in operational processes, significant improvements in the warehouse management systems. Our technology and our product advantages are starting to show. Also the launch of our transport management systems, tighter integration with our express parcel transportation and our PTL transportation business and our FTL transportation business have led to improved transportation margins for the SCS business as well. It is sort of essentially just think of it as significantly improved engineering, operations, technology, and product capabilities leading to incremental margins. That is a structural shift. Now going forward, I think there are a few growth levers that we have. One straight away from an e-commerce standpoint is we have our guaranteed next- day delivery product which is now linked to the fulfillment center network. This essentially is aimed at direct to consumer brands and at e-commerce. We are already seeing pretty decent uptick. Number two, we have expansion of existing relationships specifically with players who work with us in the auto and auto ancillary space for example. We're in advanced discussions with potential clients in spaces that we already serve pretty well, which is consumer durables and industrial goods and some in the auto space as well. This change will be structural and we do anticipate that margins in this space will continue to go up. Last year of course our margins in Q2 were particularly affected and we actually, I think we declared a loss of 4.4% largely owing to our entry at that point into quick commerce which is a segment that we've exited. Superb. You know, thank you so much. Very clear on that, silent terms of GST. Again, we saw your comments in terms of what you mentioned on shareholder letter. The question is more from a demand perspective, are we seeing any increase in demand or a pent-up demand where consumers are buying a bit more because of these GST cuts, particularly on the e-commerce side. There has been some positive impact of the GST cut on the consumer side. We're seeing it by the way, not just in e-commerce alone. We are seeing it even in our, in certain parts of our freight business. There has been some uptick overall in terms of volumes, but it's not sort of, you know, I think it is a festive period in general and so there's sort of, you know, high volumes in the September, October period anyway. Also, some of this was, you know, a part of the increase in demand was also because when the GST rates were changed, I think people consciously postponed consumption for a period of time. That is why that middle sort of 10 days in September there was a dip actually in consumption in some categories. Clearly, we saw very, very strong growth during the festive period. For example, consumer durables is a sector which grew very fast. You know, specific brands, which can't disclose here obviously, but specific brands we did see significant uptick immediately after. There has been overall a net uptick. We see this even in our part truck business to some extent. Great, thank you. All the best. Thank you. The next question is from the line of Gaurav Rateria. Please unmute yourself and mention your organization name as well. Hi, this is Gaurav Raria from Morgan Stanley. Hi Sahil. I have two questions on express parcel. Beyond this year of integration and the market share gain and the benefit that we saw because of consolidation, how should one think about the normalized growth in this industry? Is this going to be a 10%, 15% any sense that you can talk about at least more from not like a very medium term, but more like a, you know, 12 months, you know, kind of a period. Second question is that when you look at the PTL, we were very confident about kind of a hitting 20% number on volume growth. First half is around 15%. I understand there could have been GST issues that you talked about in the shareholder letter, but do you still expect it to be around 20% in a pent up demand to kind of show that in the second half? Thank you. Sure. On the first one very quickly on market growth and express growth, obviously this year there's the outsized impact of the Ecom Express acquisition. Our anticipation is the market, as I mentioned in the past, grows at sort of, you know, 15%-18%, 20% kind of growth rates. Earlier of course our point was that Delhivery would grow at the bare minimum in line with market growth. That said, I think there are some structural factors which are, you know, fairly significant upsides for Delhivery. The first of course is the fact that with the growth we've already seen both in the express business and in the PTL business, our cost structures improved even further. Our ability to drive efficiency in, our ability therefore to differentially gain share of wallet where we would like to has improved and we will flex that muscle. We will gain share beyond, you know, just the basic market growth. The second thing is, you know, historically so far one of the drags on this sector has been companies sort of thinking about doing logistics in house and obviously competitors who have priced below cost. I think with the acquisition of Ecom Express, one of the things that certainly has become clear is that pricing below cost is not a viable logistics strategy. Other competitors in this space of course I think have sort of, let's just say, become more disciplined which changes competitive intensity for us. Also I think weaker balance sheets for some of our competitors affects their ability to invest in capacity building aggressively. Also players who have largely variable cost models, I think when you study their financials what you can see is that there's no operating leverage at all. You know, even if companies in this space have been able to generate incremental revenue, they've been able to generate no incremental margins out of it. I think at some point that also strengthens Delhivery's overall competitive positioning a lot. Net, net, that's one big tailwind for us. The other of course is that when you look at self logistics itself, you know, the historical argument from self logistics players has always been that as they grow they become more efficient and their costs come down. I think one of the self logistics arms has declared the same absolute loss that they declared last year. I think at some point the reality is that these costs are going to catch up with all logistics arms. I think you can clearly see from one of the international marketplaces that profitability is one of the core focus areas. What is very clear is that self logistics is not the most efficient answer to get there. I do think that over the next couple of years you will also see, you know, sort of a more judicious use of capital and sort of a decision to outsource certain parts which are certainly loss making to 3PL companies of which there aren't too many. You know, there is already one fewer than there was last year. In that sense, I think that's again a big tailwind for Delhivery. I think market growth, like I said, 15%-20%, Delhivery's own competitive positioning, you know, evidently stronger than it was last year. We should be able to grow beyond market growth as well in terms of PTL. Yeah, 15% is where we are for H1. You're right. There's a significant impact actually of GST over here because ship outs were delayed and pushed out towards end September this year. At least so far we have seen a reasonably, you know, sort of strong October, and the January, February, March quarter usually is the high watermark for PTL. I think we'll be very close. We'll probably get to the 20% growth rate overall. The other focus from our standpoint, of course, on the PTL business has also been continuing to improve our yields. You can see I think our yields are up again, 3% quarter- on- quarter. Overall, I think we have gained nearly one rupee in yield over the last year or so, which is very significant. We will continue to push that. I think what is more important outside of just the volume growth is for us to get to that 16%-18% kind of service, EBITDA margin. Once we get there, you know, for us to push growth on the PTL business is not particularly hard. No structural change even from a PTL growth standpoint. Thank you. All the best. Thanks Gaurav. The next question is from the line of Aditya Suresh. Aditya, please go ahead and request you to limit your questions to two. Yeah, thank you. This is Aditya Suresh from Macquarie. So I'll add two questions for you. First is a theoretical question. In your press releases in the past couple of months you have kind of referred to this peak volume metric on a daily basis. I mean I kind of look at that and then compare that with the express parcel volumes which you've seen. Whilst we're up over 30%, I mean, the daily run rate, if I may, is more, let's say 2.6, 2 point parcels. Right. Could you help square that in terms of like how should I think about what you report as a peak volume versus what you report on a quarterly basis? Because effectively what I was reading was that this implies a lot of slack in your existing system. Is that the correct way to think about this? No, not really, Aditya. For two reasons. One is there's a big gap between Mondays and Sundays, right? You deliver a lot more consignments on Monday than you do by the time you get getting down to a Sunday. The average of, you know, sort of 91 million divided by, so 100 million divided by whatever, 30 days which works out to some 3 million a day is not exactly correct because Saturdays and Sundays will be very, very low. Mondays will be very, very high also. That's just the way, you know, more sellers will ship out in a fashion that goods are reaching, you know, zone D, zone E, zone C kind of locations on Saturdays and Sundays. The Monday available volumes for dispatch are significantly higher. That's one of the reasons why there's an outsized Monday. In fact, the interesting thing is that I would look at it as saying this. It's not a question of slack. It's the ability of the network to capacitate correctly for different dispatches, dispatch levels across different days without a significant increase in our costs. We are actually able to deliver 7.2 million shipments on a Monday and, you know, call it 1.2 million shipments on the Sunday. Because were we actually, you know, if we had as much slack as the average would suggest, the reality is that the express business would be nowhere near its 16% kind of margins overall. This is the way we plan capacity. This is essentially the way that we roster capacity. This is the way our systems orchestrate the movement of goods to the last mile. Interesting. Just in terms then, obviously from a market perspective, just on express parcel, you've seen quite a few movements clearly. If you had to frame what the market looks like today and kind of your market share, could you help us with what your current understanding is? I think market share, very hard to put exact numbers to it. Let me put it this way. First of all, if you look at it outside of in terms of the overall market, including all of the marketplaces and excluding grocery, I think prior to the Ecom Express acquisition we were, whatever, close to about 20%. Post the Ecom Express acquisition, we are probably closer to somewhere between 27%-30% or so. In terms of whatever is not outsourced, if I exclude sort of Amazon self logistics and Flipkart self logistics and if you sort of, it depends on how you choose to take Valmo, but if you exclude Valmo, for example, our market share will be well over half of the market. Interesting. Can I ask one more, Sahil? Sure. I mean I have no problem. Okay, so just on then on the PTL business. Right. This is more specific. I was a bit confused that you saw better volumes both year on year and sequential. You saw better yield but margin was down. Right. Yeah. Why was that the case? Just two things. Yeah, that's. There's two reasons why that is. One is obviously, like I said, there's that INR 6.7 crore additional cost that we had to take during the month of September because volumes got pushed out. We built capacity a little earlier. The second thing is by virtue of being an integrated network, what happens is that when you're building up capacity for Express and heaviest, a certain amount of that cost gets allocated to the PTL business as well. Right. Okay. Part of the reason. Structurally there's no change to the PTL margins. These will just rebound once all of this sort of washes out. Great, thank you. Thank you. Thanks. The next question is from Sachin Dixit. Sachin, please go ahead. Thanks for the opportunity. My first question is on how do we read this INR 13 crore incremental revenue from Ecom Express. I mean you have obviously stopped manifesting volume there. How are you coming up with this number? If you really try to do like to like, how much of your revenue would actually be coming from the acquisition benefit rather than just INR 13 crore? It seems too low. It's just that INR 13 crore is just standalone revenue for some contracts which need to be exited. E-commerce in certain businesses that Delhivery does not want to service, that will also just wash out and go to zero. Understood. So whatever express parcel benefit is there, it's already there in the P&L. Yeah, sorry, I didn't understand that fully. This is not an express parcel revenue. This INR 13 crore that is there. This is another contract that they had. There's a lock-in in that contract. We are servicing it and it'll wash out. Sure. Understood. Secondly, on the margins thing that my prior participant has already asked, you mentioned that that 15.3% service EBITDA that we delivered in EPS for the quarter will be more or less normalized as we proceed to October. Thanks to a press release we know that only 3 million extra shipments are happening largely, which includes rate as well, are happening in October versus September. How sharp a jump can the 3 million drive through? Can you give some color what is happening? It's very significant is what I can tell you. Between September and October we do have obviously our October provisional financials, but they're not public. What I can tell you is that September plus October, when looked at together, we are well within the margin range that we would have forecasted internally. The reason why September is slightly lower, and your question is good, which is that October volumes are similar to the September volumes. The point is two things. One is a lot of the costs in September are in the early part of the month. The 104 million, 101 million, and 107 million that we've picked up in September and October respectively are pickup volumes. A lot of the delivery has happened in the first week of October as well and beyond. There is a certain amount of impact because of that as well. Closures in October will be higher. Also, what's happened is by the time we're entering the tail end of October, some of the additional capacities that were built into September are also going to start tailing off a little bit. The October margins will be better than the September margins as a consequence. Net, net when you look at September, October, the margins will be higher than the 15.3%. Understood? Sure. Thank you. All the best. Thank you. Thanks, Sachin. The next question is from Abhishek Banerjee. Abhishek, request you to unmute your line. Yeah, yeah. Hi. Am I audible? Yeah, go ahead please. Abhishek. Yeah. Was trying to understand the jump up in employee expenses. Is that going to stay or will it normalize? I mean, are there any one offs? The jump in employee expenses is directly linked to the growth in volumes during the peak period. We did whatever. Nearly some 35 million more consignments in the express business and 20,000 more tons of freight. We have more, you know, delivery riders. We also opened a few more centers across the country. We expect volumes, as I mentioned, October volumes have remained very similar. Strong. Our forecast going forward also at the moment at least continues to be pretty aggressive. Manpower levels, staffing levels across the company and the operations teams are modulated to whatever is the overall volume that we expect to have at a unit economics level. There's actually an improvement. Okay, but I was trying to understand that. See, the estimate that you have given for employee expenses without the impact of Ecom Express is about INR 386 crore for the quarter, whereas that number is INR 426 crore actual. Right. So this INR 40 crore, is it going to go down? Are those one-off payments? That is what I'm trying to understand. Also, in the shareholder letter you have, you know, written about certain facilities where you have to continue paying the rent because there is a lock-in. When will that get something? I think Vivek will just provide the specifics. You are referring to the P& L column, right? The management estimate. And you are subtracting the two. Yes. Correct. Six minus 386. The 40 crores? Yes. Yes. That corresponds to the integration cost. That cost will go down. It's not a permanent cost. Understood. [crosstalk] Y our voice trailed off. Sorry, I think we could not hear you for a second, Abhishek. I will just button while Vivek comes back. Yeah, go ahead Vivek. Yeah. Your voice trailed off. You were answering the particular cost will go away. Then Vivek was saying something. When the voice. Facilities. What was the question? Facilities. Oh, that means you mentioned that you are continuing to pay rent for some of the facilities which you have decided to shut down. I was trying to understand by when will that get sorted? As in how long are those contracts up? Different facilities will exit at different points in time. I think there are about three facilities which have a longer lock-in which will continue beyond FY 2026 as well. The rest of the facilities should largely exit by end of this financial year. The INR 110 crore of additional, this thing of additional impact that you spoke about over the next couple of quarters, that already factors in these points, right? Yeah, it factors all of these points. It factors the cost of facilities, people discontinuing businesses, overheads, all of those points. What would be, you know, if one were to kind of try to model the margin going ahead? Is it, you know, reasonable to think of a material improvement in the adjusted EBIT margin in H2? Material improvement in adjusted EBITDA margins? Sorry, your question was not clear to me. No, no. I'm saying that generally every year there is a material movement in the adjusted margin in the second half vis-à-vis the first half. Would you think something similar should play out given, you know, the timing of the ship season and all of that? Yeah, that typically is the nature of the business. All the fixed capacity additions in the network do happen during the first part of the year and then they get sweated better during the second half of the year. The volume momentum so far in October, as you would have seen our release, has continued to remain strong. If the volume momentum continues for the rest of the months of this quarter, and anyways the fourth quarter is a peak quarter for PTL, the combination of these two, if it plays out as how it has played out in the previous years as well, it should ideally lead to better sweating of the fixed assets and it should lead to improvement in margins. and the parcel yield. There is no reason to think that the express parcel yield will fall further from current levels. Abhishek, we have explained this in our letter as well. It's a it's entirely a function of parcel mix. It's always hard for us to predict what the parcel mix would be going forward. What we can safely say is that any movement in yields that you see for the coming quarters will be a function of parcel mix. Whether it will go up or go down, it's hard to say. I understood. Understood. No, my question was just given the fact that Ecom Express did not have too much of heavy, so that, you know, step jump in increase of lower part, lower weight classes would have happened. I was coming from that point of view, but I understand. Thanks. Thanks, Abhishek. The next question is from Achal Lohade. Achal, you can unmute your line and go ahead please. Yeah. Good evening, team. Thank you for the opportunity. Two clarifications. One, there is a line of INR 20 crore in the other services EBITDA. If you could clarify what that pertains to and how sustainable it is. Actually, you said you have two questions. You want to ask both. Yeah, the second, just a clarification on this INR 90 crore. You know, you kind of explained INR 48 crore is part of the employee cost and INR 42 crore is that part of other expenses. Is that the way we should look at it? Yeah, just a second. Vivek, you want to go ahead and give a breakup of the INR 90 crore integration cost. The breakup would roughly be there would be about INR 15 crore-INR 20 crore of cost corresponding to facilities which are being exited. Hello. Sorry, I'm not able to hear. We are not able to hear you. Am I audible now? Yes, you are. Now y es. Sorry, we seem to have lost. Vivek, am I audible? Yes. All right, let me take this. Of the INR 90 crores overall Ecom integration cost that we have, the breakup is about INR 31 crores comes from exiting facilities, exiting offices, dismantling of infrastructure and so on. About INR 17 crores is also from facilities. But it is in the exit of fulfillment center businesses that Ecom Express was running. About INR 21 crores is essentially the separation of employees and the remaining is shut down for example of AWS costs as there are no further computational requirements and so on. You mean the employee related charge in the employee cost item is just INR 21 c rore. Out of the INR 90 crore out of the INR 90 crore for the previous quarter. As discussed earlier, the additional INR 40 crore that is there will also again wash out over the next two quarters. That is already factored into the INR 100 crore integration cost that we expect to have over the next two quarters. Yeah, fair point. What about the INR 20 crore other EBITDA in the services service? EBITDA line it up. That is related to our cross border business. That is a commercial arrangement between us and FedEx. There is a change to the commercial structure of our arrangement with FedEx. Our five- year contract is due for renegotiation in the early part of next year and we are sort of reevaluating commercials. There are certain zones which Delhivery intends to service non exclusively going forward with FedEx. We also intend to launch our own product for economy cross border shipping. This is a one time charge. This INR 20 crore charge. Okay, understood. Just a, you know, clarification. In the corporate overhead line item, INR 209 crore has become INR 235 crore. QoQ, right? Is that a new normal? Does that include this INR 21 crore or is it without including INR 21 crores? I presume it does not. Some of this will also reduce of this overall increase of INR 26 crore. INR 2 crore is due to higher gratuity provisioning. About INR 2 crore is due to provisioning for end of year bonuses which are part of the variable placement structure of the sales teams and operations teams in the company. That's as it is provisioned. Currently about INR 15 crore is an increase due to tech costs. This is between AWS and GCP. The AWS costs are because we provision servers in advance of the peak season in order to ensure reliability of the systems. Some of this is related to AI initiatives which are currently on within the company. Of these, the AWS cost level certainly as we decommission excess of capacity for example, this will come down. This is not the new normal. Overall from a wage standpoint, which is the sticky part of this, the overall increment in wages through this period I think is only close to about INR 4.5 crore or so. Understood, understood. If you could give any update on the new, you know, business, what you are investing in is, you know, what kind of visibility you could offer for next, say, three to four quarters, what kind of investments we are looking at or, you know, targets. The two businesses are Rapid Commerce and Delhivery Direct. I will sort of break them up separately. The Rapid Commerce business is essentially aimed at direct to consumer brands and e-commerce with sort of two hour delivery timelines. We are currently live with about 20 dark stores in three cities, which are Bangalore, Hyderabad, and Chennai. We have just launched our first dark store in Delhi NCR as well, and I think we will launch Mumbai by the time we reach waterfall. We will be in five cities as we've discussed previously. Basis the current costs that this sort of form of Rapid Commerce entails, we believe that this is about an INR 80 crore-INR 100 crore kind of niche capability that will get added on to the core business over the sort of more immediate term. However, we do have, you know, we have been working on the network design and, sort of, from a technology and product standpoint, how do I integrate this business better with the overall Delhivery network? We do believe that over the next four or five months we will be able to engineer a material reduction in the cost of delivery for sub- 2 hour- delivery, at which point the size of the market becomes interesting. As of now, it is an untested proposition. The question is, if a company has the ability to drop the cost of two- hour delivery to, sort of, sub- INR 45, sub- INR 50, the market suddenly opens up a lot more. That is the lens with which we are looking at it right now. I think it'll be safer for me to provide a sort of more enduring estimate of the size and economics of this business sort of at the end of the financial year. Safe to say this will be an INR 80 crore-INR 100 crore business at the bare minimum. The economics of this business will change quite significantly depending on how our experiments with the network go over the next four or five months. Investment levels in this business are not particularly large. As I mentioned, I think between the two businesses put together our total investment levels are about INR 15 crore at this point in time. On Delhivery Direct, we are currently live in three cities, which are Ahmedabad, Delhi NCR, and Bangalore. This is an on-demand intra-city service. We will be expanding to another five cities between now and the end of the financial year. This will be obviously some of the major cities that are missing. We will also launch, I think, Jaipur and Surat sometime over the next four or five months. Again, here our focus right now is more on the three-wheeler and four-wheeler segment. Part of the reason also is, I think, if you look at the two-wheeler segment specifically, there is a certain amount of ambiguity around GST in this sector. Obviously, from our standpoint, our comparative advantages on three-wheeler, four-wheeler are fairly high. Again, this is early days. You know, this business is right now at a run rate of about INR 25 crore-INR 30 crore overall annually. Could be a very large business for us going forward. This is easily, sort of, you know, an INR 1,500 crore business in the next couple of years. Once again I think too early to comment. I think let's let the financial year play out and then we'll be in better position to, to sort of comment on this. Thanks Achal. Thank you. The next question is from Aditya Mongia. Aditya, please unmute your line and go ahead. Thanks for the opportunity. The first question that I had was linked up to the comments you made on Delhivery. Not now having to kind of share cost benefits with the customers as the annual price resets happen in the month of January, February, March next calendar year, could we expect that kind of that benefit starting to flow through into our margins? Probably Aditya, it's too early because right now I think we don't know what the shape of those negotiations will be exactly, and I'll explain why, because some of the negotiations that are ongoing with some of our bigger customers also involve a shift of heavier volumes, for example, into the Delhivery network because I think, you know, as heavy volumes have grown, and this year of course the growth again has been pretty sharp. I think people are reevaluating sort of doing this through their existing self logistics networks, so it'll depend a little bit on that. Broadly speaking, Dashni, you are right, which is that I think given the absence of irrational pricing from other competitors in this market, at the bare minimum it is unlikely that we will see very significant reductions in pricing. If at all there will be any, they will only be in response to extremely high sort of gains in share of wallet with these customers, which then of course will still be margin accretive for us. Noted Sahil, the second question is on the self-logistics part of your thought process. Now, we've discussed Amazon, Flipkart, and the financial maybe in the past, but Valmo has become, let's say, 60% of Meesho's file, which is a significant number. Now, would you have done any kind of benchmarking of your cost structures across the first, mid, and last mile, and if so, any conclusion that you can draw as to how can that part of business for us become more competitive and thus we kind of gain market share? In specific, on the last mile, is there a thought process emerging that it may be best for certain clients to focus on the mid mile part of it, wherein the requirements of last mile may be very different for those kinds of customers? Not really. I think on these sort of stitched together networks, first of all, we have done the benchmarking of our first mile, mid mile, and last mile costs broken up also, and then bundled versus the cost of the stitched network. We are more efficient both at an unbundled level as well as at a bundled level compared to the pricing that we have seen in the market. There are, of course, places where stitched together networks enforce sort of artificially low rates on partners, which then result, and you can, I think you could see this in the publicly declared numbers, that the growth of Valmo has come with a consequent increase in return rates as well. Logistics cost as a percentage of revenue have not reduced for Meesho as well. For an equivalent profile of goods, the costs of delivering via the Valmo network are not lower than delivering through Delhivery. In fact, they are higher than Delhivery. Also, when you adjust for loss and damages, our sense is that actually Delhivery is significantly more efficient. I think the other question also is, you know, and again, let me be clear. I think, you know, they built Valmo, there is a certain amount that will continue to go through that network. The reality is that I think stability of the network has been tested during the peak period and we, you know, our service levels have held up. They have. We also track our service levels not just for individual clients, but we get service levels published at an industry level. We have seen that through the months of September and October, aggregate service levels and speed for the Delhivery network were materially differentiated. That obviously results in lower returns, that results in lower customer complaints overall and so on. We do keep benchmarking. We do believe that we have material cost advantages. There may be very, very specific sort of areas, of course, where somebody may be highly sort of, you know, localized and better than us in the last mile. It is always possible. That difference usually, Aditya, will not be more than a rupee here and there and it is just not material enough to, to sort of, you know, justify doing the last mile yourself and everything else through Delhivery. I think overall what you will see is a consolidation towards Valmo plus, you know, sort of a high quality player like Delhivery and, you know, partitioning of the total Meesho volume between these two. Thanks, Aditya. The next question is from Jainam Shah. Jainam, you may unmute your line and go ahead. Yeah, thanks for the opportunity. Just one question. The announcement that we have done about the incorporation of a subsidiary in India related to the Delhivery Financial Services Private Limited. How are we thinking about the subsidiary over the next few years? Is it going to be something big and probably we are committing against one of the leading listed players in this particular space, or is it just a start point and we might think about it after a few years? Obviously our desire is for this to be large. I can share our thinking behind this. There are three distinct pieces that we intend to sort of power through this. First up, of course, is the fact that we already have a large network of truckers who work with us as part of our express network, our PTL network in line haul, they work with us as part of our supply chain services business as well, and also as part of our FTL network. The objective will be to provide services to these truckers via the financial services arm. This will include, for example, things like FASTag and fuel. The second, of course, is we have a large number of partners who work with us and wish to grow their fleets with Delhivery. We will look for partners who can work with us and essentially enable our partners to expand this essentially lending for commercial vehicles for our partners to do both small commercial vehicles for, you know, sort of intra city distribution and short haul vehicles but also long haul vehicles as part of Delhivery's FTL and SCS network. The third obviously that we already offer to our customers is a form of assurance or protection essentially against loss and damage, delays and so on within the Delhivery network. That is sort of how it will come together under Delhivery Financial Services. The business plan is something that, you know, Mukul Sachan who joined us recently, Mukul was the CEO of Lendingkart, has come in and, you know, he is putting that together and we will have more details to share in quarter four and towards the end of the financial year. Got it. Thank you so much. Thanks, Jainam. The next question is from Krupa Shankar. Krupa Shankar p lease unmute your line and go ahead, please. Yeah, good evening and thank you for the opportunity. The first question was on the PTL side. While we have seen that the underlying industry growth has been between about 10%-12% and we have been consistently outperforming the industry and become more or less the second largest player. At what stage do you believe that our growth will be similar to the underlying sector and do you see that there is a logical consolidation which will happen in this sector over the next few years? I'm specifically talking about express Part Truck Load sector. Do you see chances of consolidation over there? Sure. Sure. Actually Varun's on this call. I'll ask Varun to weigh in. Go ahead. On your first question, basically at what stage do we think. Our growth will be in line with let's say the growth in the economy or let's say the participants in the industry. I think how PTL is different versus let's say Express business is probably. We have extremely low on market, low on market share at this point in time versus the organized market as a whole. There is a big unorganized market where there is a lot of share with the local players, which is basically getting more and more formalized with every passing month. I think that stage is as far what also gives us another lever versus competitors which may be older than us in terms of the time they have been doing PTL is our presence versus them relatively is geographical constraint still. Although we have worked on that a lot over the last couple of years. That's why you see the growth that's transforming. As we do more and more ee go to deeper parts of the country which generate more loads, practically at some areas we probably still have zero market share. These two things coupled, I think there is at least this, this Is not something which I, which we lose sleep right now. That is one. What was the second question? Sorry. So yeah. Again on consolidation opportunities, we do get to see various assets at various points in time. To be very honest, we are yet to see something which we think will really, really benefit us In the longer run. Anyways, I think on this point Sahil might want to add something. Yeah. So very briefly on consolidation, I think choosing what to buy in this space is very, very important. There are assets which have been available in this space. In fact, I believe there is one which is currently sort of being looked at by various players. We are not part of that. The reason is because, you know, as an example, it's easy to build, let's call it an INR 3,400 crore PTL business which is doing volumetric cargo and losing money. Now Delhivery is not particularly interested in buying those kinds of assets. There is sort of no price at which that asset makes sense for us because I think buying a, buying a sort of forward moving PTL network with volumetric assets is the easy part. Making it make money is very hard and if we can't then we're pretty certain that nobody else can. That's number one. I think number two, the reality is the more our scale, scale relative to other players in this space, increases, the less the relative value for us to go out and pay a very high multiple to buy, you know, another player. At least from our standpoint, I do not think that is the shape and form that consolidation in this industry will take. I think more likely over a period of time, these, you know, other players who are not investing in building capacity will remain flat. They will continue to have the ability to sort of make money but not capture growth, and our relative growth will be significantly larger. Got it. One more question from my side was there are two other subsidiaries come up in the U.K. and UAE. Is it related to the FedEx point which we were mentioning earlier? Yes, very narrowly these are, these will essentially just be outposts for Delhivery in both of these markets. I think with the U.K.-India FTA, this is an interesting market from a cross-border express standpoint. This is, you know, we're very excited about the economy product that we're going to launch. Now we were not able to launch this while we had an exclusive partnership with FedEx, but now we can. The one that is planned in Dubai is fundamentally because we essentially intend to use multiple carriers for our mid-mile. We use that in India today, we also intend to use Emirates. The advantage is that we have the ability to consolidate and deconsolidate cargo in Dubai. Thanks, Krupa Shankar. The next question is from Kamdinya Nimagada. Please go ahead. Yeah, hi sir, thanks for the opportunity. Couple of questions, one on express parcel and then the second one is on the financial which is incorporated. Let me just get over the second one first. The financial arm which you incorporated, is it going to be something very similar, similar to what BlackBuck does where you become an aggregator or are you also going to have some skin in the game? I mean, are you just going to be aggregator for financial institutions or are you also going to take some lending on your books? If you can provide some clarity on that front, please. I think too early to say and you know, I think BlackBuck has built a great business when it comes to doing FASTag and fuel and so on. That is something that we intend to provide as a value added service to trucking partners and Delhivery freight exchange and within the Delhivery network, the commercial vehicle lending. I think they also have a pretty small book at this stage and our approach is actually more geared towards small and mid-sized commercial vehicle lending at this point because that is where we feel that our ability to underwrite demand obviously is significantly better. These vehicles vendors flying with us gives us a very, very significant competitive advantage both in terms of capacity and in terms of cost. The intention from our standpoint obviously will be to bring in partners who are interested in funding, you know, fleet owners. It is still early, I think too early to comment on exact details, but our approach will be, you know, somewhat dissimilar from BlackBuck overall. Okay, just to get that understanding on the last part correct, you're not going to take the risk on financial risk on your books. It's not, it's. You'll just be an arranger collecting a service fee. Is that a fair understanding? Yes. More likely than not, that is correct. Okay then moving on to the other question on express parcel. Just trying to understand on this aspect. I mean, Ecom Express, in your estimate, what would their volumes be in base quarter? That's 2Q FY 2025 last year. I don't have the data offhand immediately, but broadly, from what I remember, Ecom Express must have been doing about 85-90 million orders a quarter in steady state. I mean last year it was a bit higher, at 50%. Is it fair to understand? Correct. You have to correct for the fact that there's a reporting difference between Delhivery and Ecom Express in terms of the RTO rates. You have to adjust their volumes by about, I think, 14% or 16% or thereabouts. The forward volume, which is how Delhivery recognizes it, would have been about 90 million orders for the quarter. Quarter 2 may have been a peak quarter, so it may have been slightly higher. Go. Yeah, yeah. So INR 90 million per quarter and the retention rate broadly is around 60%. Is that a fair understanding? What's your question? The question is, I'm trying to figure out the organic growth in this quarter because it appears, I don't know, at 55-60 million parcels that Ecom has done. At 50% retention rate, the organic growth is only 4%-5%. Just trying to understand that math part. Correct. Broadly speaking, the organic growth in the Delhivery volumes, if I look at. Let's look at it slightly differently because you have to exclude the likes of our Meesho growth and so on. When you exclude that, our direct to consumer and SME volumes, as an example, have grown 40%. Now, with the marketplaces, obviously the growth rates are significantly different. Our volumes are. The marketplaces have also grown pretty significantly. Our organic growth rate, it's very difficult to sort of comment exactly what it would have been. It would have been north of 15% for sure. That would mean that our overall, as far as I can make out, our overall volume retention from Ecom Express would have been north of 45%-50%. I mean that's where the problem is. Somehow the math is not adding up. That's the reason I was trying to understand the basics first before I asked the question. Because north of 15% organic growth plus then a 50% retention rate, the volume should have been 270 odd number. No, that's not correct. We did 170, 185 million odd consignments. Or 180 million on which if you add about 15% you get to about 207. We've added close to about 36 million consignments after that on a base of about 85-90 which will be about 40%. You can take this up with Vivek and team after this and they can give you details. Sure. We can speak in detail on this. Sure, sure. Thank you. Thanks. Thanks. I'll just use this opportunity to ask you one clarification. So you know you've been talking about 16%-18% service EBITDA margin for the PTL business in the next 24 months. Just want to understand is that predicated on the 20% growth assumption or the growth guidance that you've been talking about in that business or you know, even if the growth is slightly lower, you believe that you'll be able to hit that number? We will be able to hit those numbers even if the growth is slightly lower. We have a number of other sort of margin improvement measures that are underway. In any case, as you can see, we've been consistently improving yield in this business as well. We expect that those yield improvements will continue overall. The second is capacity utilization across the network is anyway going up. The third is that a lot of our BD is also focused on improving the directionality, which is another way of saying increasing utilization of the overall network. Irrespective, you know, let me put it this way, we are not predicating reaching the 16%-18% margins in the PTL business only on the 20% growth. Sure, that helps. Thanks a lot, Sahil. I'll leave the floor to you for any closing remarks. No, thank you to the Ambit team first of all for hosting us and thank you to all of you who've joined on this Wednesday evening and participated in the analyst call as discussed. I think we're pretty satisfied with overall performance in Q2. Fairly significant growth especially in the Express business and improvement in overall revenue in the PTL business both with 11% growth in volume and 3% growth in yield. Also very happy with the improved profitability of the supply chain services business. Most importantly, I think the integration of Ecom Express particularly I think has been smoother than even we originally expected. I know there were questions and doubts after the Spoton integration but I think this time around it's been a very smooth experience. Overall we expect that compared to the INR 300 crore envelope that we had originally thought, we will be significantly below that. Set up very well for quarter three and quarter four. You know, look forward to speaking to all of you in three months. Thank you. Thanks. All of you may now log off.