Are Blue Dart Expres latest results good or bad?

Blue Dart Express's latest financial results for Q2 FY26 reflect a notable operational performance, showcasing strong growth in both revenue and net profit. The company reported a net profit of ₹81.38 crores, marking a 29.50% increase year-on-year, which is a significant turnaround from the previous year's decline. Revenue for the quarter reached ₹1,549.33 crores, representing a 6.96% year-on-year growth, indicating the company's ability to maintain a healthy sales trajectory despite a slight decrease in growth rate compared to the previous year.
The operating profit also demonstrated robust performance, with a reported figure of ₹251.96 crores, which is an increase of 28.84% quarter-on-quarter. This growth is attributed to effective cost management and operational leverage, as evidenced by the operating margin improving to 16.26%, up 269 basis points from the previous quarter. This margin expansion reflects the company's strong pricing power and operational efficiency in a competitive logistics market.

Additionally, Blue Dart Express continues to exhibit exceptional capital efficiency, with a return on equity of 27.38%, significantly higher than industry averages. However, the company also faces challenges, including elevated interest costs and a notable decline in stock performance over the past year, which has raised concerns about the sustainability of its premium valuation.

Overall, Blue Dart Express's Q2 FY26 results indicate a strong operational execution, but the company has experienced an adjustment in its evaluation, reflecting the market's mixed sentiment regarding its long-term growth prospects amidst recent performance volatility.