Shareholder letter
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Date: October 30, 2026 BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai – 400 001, India Scrip Code: 543529 National Stock Exchange of India Limited Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra (E), Mumbai – 400 051, India Symbol: DELHIVERY Sub: Letter to Shareholders on financial results for the quarter and half year ended September 30, 2026 Dear Sir/ Madam, Please find enclosed herewith the letter to shareholders dated October 30, 2026 on the financial results for the quarter and half year ended September 30, 2026, in terms of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This disclosure will also be hosted on the Company’s website at www.delhivery.com as per the provisions of the SEBI Listing Regulations. You are requested to take this on record. Thank you. Yours sincerely, For Delhivery Limited Madhulika Rawat Company Secretary & Compliance Officer Membership No: F8765 Encl.: As above
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Dear Shareholders, We are pleased to present our Q2FY27 results. Overall volume and revenue momentum remained steady through the start of the annual festive period. We carried 325mn Express shipments (+32.1% YoY) and 545K MT of PTL freight (+14.2% YoY) in Q2FY27. Revenue from services stood at Rs.3,066 Cr (+19.8% YoY) and profitability improved sequentially, with Adjusted EBITDA at Rs.123 Cr (4.0% margin), growth of 62% QoQ and 48% YoY. Reported EBITDA stood at Rs.205 Cr (6.7% margin) and consolidated PAT at Rs.41 Cr (1.3% margin). Despite a volatile macro environment due to rising fuel prices, labour availability issues and multiple statutory changes - including the new labour code, revision in minimum wages, scheduled introduction of MDR on UPI payments and revision in EPFO ceiling - overall service levels across our network have been maintained at their highest levels this year, compared to any festive season, while simultaneously improving profitability. We continue to invest in technology capabilities to improve demand shaping for profitability and reliability, enhance infrastructure productivity, reduce dependence on labour in under-the-roof operations and simplify customer experience. Some of our early investments in AI capabilities are beginning to bear fruit, reflecting in faster development cycles, improved sales productivity and customer onboarding, faster resolution of claims and disputes and fraud detection. Delhivery Maps has delivered ~$1M of internal savings and now includes 13 new APIs that enable a wide range of location intelligence based use cases for enterprise customers across banking/financial services, e-commerce, field operations and logistics. Delhivery Labs has also commenced production of customized autonomous mobile robots for in-facility movement. We have also begun testing proprietary robotics systems across under-the-roof operations, in partnership with global leaders in the physical AI domain. Our new businesses are ramping up faster than originally planned. Delhivery Local is now live across 8 cities and is on track to exceed our previously guided annual revenue run rate of Rs. 250 Cr by Q4FY27, along with improved contribution margins. Financial Services has also begun early monetisation of our vendor ecosystem, and is developing co-lending partnerships with an objective to broaden financial access for our vendor partners through an asset-light approach. Capital expenditure stood at 4.8% of revenue in H1FY27, well on track to stabilize within our overall guidance of <5% of revenue. Net working capital position at 5 days as of Sep’26 has also improved materially versus 11 days as of Mar’26. We also continue to maintain a strong cash balance of Rs.4,676 Cr as of quarter end. Having navigated a complex environment, we remain confident that our momentum and investments will enable us to deliver sustained service excellence alongside improvements in revenue and profitability. As always, we remain committed to being patient, disciplined and thoughtful stewards of your capital and thank you for your continued trust and support. 325 Mn Express parcel shipments YoY: 32.1% / QoQ: 0.8% 545K MT PTL freight tonnage YoY: 14.2% / QoQ: 0.7% ₹3,066 Cr Revenue from services YoY: 19.8% / QoQ: 4.6% ₹123 Cr / 4.0% Adj. EBITDA / Adj. EBITDA margin Q2FY26: ₹83 Cr / 3.3% Q1FY27: ₹76 Cr / 2.6% ₹205 Cr / 6.7% EBITDA / EBITDA margin Q2FY26: ₹68 Cr / 2.7% Q1FY27: ₹142 Cr / 4.9% ₹41 Cr / 1.3% PAT / PAT margin Q2FY26: (₹51 Cr) / (1.9%) Q1FY27: ₹32 Cr / 1.0% Note - (1) PAT for Q2FY26 & Q1FY27 excluding impact of Ecom Express acquisition was ₹59 Cr and ₹62 Cr respectively 2
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We have addressed key questions about operational and financial performance in Q2FY27 and future outlook below. 1. Express volume growth at 32% YoY is at the higher end of the guidance previously given for full year FY27. With part of the festive season already done, what are the expectations for the rest of FY27? Express volumes grew 32% YoY in Q2FY27 and 43% YoY in H1FY27, reflecting continued market share gains and the strength of our value proposition across a broad and diversified customer base. While it remains early to comment on the remainder of Q3FY27, October volumes have exceeded our initial expectations, providing an encouraging start to Q3. Looking ahead, we are focused on four key initiatives to sustain growth through the rest of FY27 and beyond : ● Expanding geographic reach of our same-day and next-day delivery network to enhance service levels for clients and consumers ● Deepening adoption of our integrated fulfillment offering, combining warehousing and transportation services for vertical e-commerce customers - further enhancing same-day and next-day delivery ● Broadening our aggregator and franchise partner programs ● Enabling new products and value added services in Delhivery One and Delhivery Direct to drive acquisition of SME and micro-SME customers and consumers 2. Express and PTL realizations improved by 4.1% and 5.6% QoQ, respectively. What has driven this increase? Higher realizations in Express and PTL were mainly driven by implementation of fuel-linked price increases triggered on account of diesel-rate increases which happened in Q1FY27. We have also successfully concluded price revisions to cover for minimum wage inflation in several states in previous quarters. Of the PTL yield improvement of ~65p (QoQ), a lesser portion has been driven by fuel linked price revisions and a significant remainder by new customer acquisition, proactive repricing measures taken across existing customer base and improving customer and shipment profile in the network. Consistent application of pricing power resulting from the leadership position we have achieved in the industry will continue to be a key driver of margin expansion going forward as we continue to build a fast and reliable network. 3. With a dynamic macro environment, what is the expected outlook for Service EBITDA margins for Express and PTL businesses for the rest of FY27? We expect Service EBITDA margins for both Express and PTL to continue to expand through Q3FY27, driven by pricing revisions and higher network utilization. Q4FY27 is expected to be a peak quarter for our PTL business, which will continue to enable high network utilization. Accordingly, we expect Express to end FY27 in the 16-18% Service EBITDA margin range while PTL margins should expand to 15%+ by exit FY27. 4. Supply Chain Services (SCS) and Full Truckload (FTL) have improved margins QoQ. What is driving that? SCS profitability experienced a temporary dip in Q1FY27 due to inflation in fuel and labor costs and initial build-up costs during the launch phase of new contracts. Price revisions have been completed in Q2FY27 and new operations have also been stabilized, resulting in business profitability returning to expected levels. 3
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Further profitability growth is expected to come through ongoing transportation-mix optimization and optimal freight procurement driven by our agentic TMS systems, continued acquisition of new clients leading to higher utilization of multi-tenant FCs and select automation initiatives to increase staff productivity. FTL has improved profitability with freight margins of 5%+ in Q2FY27. This is driven by prioritizing higher-quality leads and shifting focus from traditional, seasonal fixed contracts to spot business. We expect spot share within FTL to increase in the coming quarters, driving sustained margin expansion. Additionally, transitioning core FTL workflows - such as client servicing, quotations, vendor calling etc. - to agentic flows is generating further operational efficiencies. 5. What is the outlook for CapEx and Working Capital for the rest of the FY? In H1FY27, CapEx stood at 4.8% of revenue, compared to 5.1% in H1FY26 and 4.7% for FY26 overall. Capital additions were focused primarily on automation and line-haul fleet expansion. As has been the case in prior years, capital expenditure i.e. fixed capacity expansion is typically front-loaded during the first half of the year, in time for e-commerce peak volumes in Q3 and PTL peak volumes in Q4. Overall, we remain well in line with our guided trajectory of reducing CapEx intensity to 4.5% of revenue. Net working capital has reduced to 5 days as of Q2FY27, from 11 days as of Mar’26 and 17 days as of Sep’25. The steady improvement in WC intensity stems primarily from lower receivable days, driven by continued improvement in client selection, tighter credit controls, AI-led automation of billing processes and faster resolution of claims and disputes. While some of the working capital compression can reverse on account of seasonal or business mix factors, the majority of the improvement is systemic in nature and is expected to be sustainable. 6. How are new initiatives like Local, International and Financial Services scaling up? Any change in guidance for the expected investments in H2FY27? Delhivery Local, our on-demand intra-city logistics platform, is live in 8 cities (Delhi NCR, Bangalore, Mumbai, Hyderabad, Ahmedabad, Jaipur, Pune and Chennai), with planned expansion to 2 more cities by Q4FY27. Annualized revenue run-rate has grown from ~Rs.100 Cr at the close of Q1FY27 to Rs.~200 Cr as of today. This has also been accompanied by steady improvement in contribution margins, with newly launched cities demonstrating faster CM ramp-up v/s earlier cities. As things stand we have re-baselined ARR growth plans to ~Rs.280 Cr by Q4FY27 versus our initial target of ~Rs.250 Cr and are on track to achieve our plans of delivering Rs.800-1,000 Cr ARR in the next 2 years. Our Financial Services offering continues to set up channels for distribution of financial products to our vendor ecosystem along with a capital-efficient co-lending solution with established partners. Our objective of completing operational and regulatory groundwork during FY27 is on track and in line with our aim of achieving an exit ARR of ~Rs.75-100 Cr in the next 18 months. Delhivery International is in the process of expanding our economy parcel (Saver), express parcel and air-freight services across the US, UK and China. The business grew 57% QoQ between Q1FY27 and Q2FY27 to reach an annualized revenue run-rate of ~Rs.150 Cr and has achieved service EBITDA profitability as well. Following an investment of Rs.32 Cr in Q1FY27 and Rs.35 Cr in Q2FY27, we expect capital outlay for these new initiatives to remain well within our guidance envelope of Rs.130-160 Cr for FY27. 4
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7. How are the company’s AI initiatives playing out and what are the key focus areas going forward? Our initial initiatives were focused on extending greater autonomy to AI agents in software development and testing, grounded in our proprietary knowledge and processes. Over the last 12 months we have deployed several AI agents and agentic workflows into production, which are improving productivity and service outcomes. Across operations, teams now leverage AI agents throughout the shipment journey for faster order manifestation, automated POD auditing, real-time quality inspection of returns, improved coordination between delivery associates and shippers or consignees, faster and more effective escalation resolution, faster claim resolution, and alerting for any festivities, local disruptions or weather events for ETA and resource planning. We have launched agents to autonomously monitor facilities and guide floor and dock operations and issue problem solving inputs to operational teams through analysis of video feeds. We have deployed fine-tuned, self-hosted open-weights models that have reduced customer support and POD validation costs by over 50% without compromising on output quality metrics v/s comparable frontier models, allowing us to scale effectively during the peak period. Our freight teams today use voice agents to automate fleet procurement and tracking. The capability is now being externalized to clients as part of our OS1 stack. AI agents have also been deployed across the sales cycle to improve customer acquisition and targeted outreach. Our field sales teams use AI-based beat planning (integrated with Delhivery Maps) and visit analytics, with insights captured directly into our CRM. AI-powered pricing simulators within our CRM now provide customized rate cards to each prospective customer based on enriched profile data, enabling faster quote turnaround and adherence with benchmark margins. We have also commissioned a joint research program with IIT Delhi: a self-healing, AI-native geospatial mapping framework for Delhivery Maps, fleet orchestration with different fuel types and scheduling optimization for a specific sub-type of highly efficient line-haul vehicles. The partnership also establishes a platform for sustained academic collaboration, giving us access to leading research expertise on complex logistics problems. Overall, the AI and technology landscape remains highly dynamic, marked by frequent launches of open-weight models, rapidly reducing prices for proprietary models, cost optimisation at the infrastructure layer and the emergence of lower-cost decision models. Together, these advances are steadily reducing the cost of a comparable level of intelligence, making it increasingly viable to automate complex workflows that demand high accuracy. We have recently set up a dedicated frontier AI team to run focused experiments with new AI tools and capabilities and rapidly scale the ones that prove effective. 8. What are we doing to accelerate adoption of physical autonomous systems across the network? We continue to invest in physical AI and automation initiatives to mitigate risks from an increasingly volatile staffing environment, rapidly escalating productivity-adjusted labour costs and increasingly challenging climate-related working conditions. ● Bin and pallet ASRS (automated storage and retrieval systems) and shuttle systems are being deployed across fulfillment centers to optimize space productivity and reduce in-facility movement effort. Similar, smaller-scale vertical systems will be deployed across transportation operations as well ● We expect to deploy 100 self-developed autonomous pallet transportation vehicles by Q4FY27 and are beginning AMR pilots with strategic international and Indian partners to reduce in-facility movement effort and reduce costs by one-third, per our initial estimates 5
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● We are engaged in pilot development with 2 key international partners to automate loading and transfer tasks, with plans to extend the capability to unloading and palletizing starting FY28 ● Our in-house robotics team is testing a zero-capex self-driving pilot for customer delivery in controlled environments with selected India-incubated startups innovating in this space ----------------------------------------------------------------------------------------------------------------------------------------------- In addition to the FAQs covered above, we have previously shared updates about our businesses, steady state margin aspirations, plans for new initiatives, and overall capital intensity trajectory in our prior shareholders’ letters (Link). Warm regards, Delhivery Ltd. 6