Are Delhivery latest results good or bad?

Delhivery has reported its financial results for the quarter ending March 2025, showcasing notable trends in its performance metrics. The company achieved a Profit After Tax (PAT) of Rs 72.56 crore, reflecting a significant growth compared to the average PAT of the previous four quarters. This growth is complemented by an operating profit of Rs 119.08 crore, which is the highest recorded in the last five quarters, alongside an operating profit margin of 5.43%.
In terms of financial management, Delhivery demonstrated an improvement in its ability to handle interest payments, with an operating profit to interest ratio of 3.53 times, marking the highest level in the past five quarters. Additionally, the Earnings per Share (EPS) reached Rs 0.97, indicating a positive development for shareholders.

However, the company is facing challenges, particularly with rising interest costs, which have increased by 25.80% over the last nine months. This has resulted in total interest payments amounting to Rs 97.57 crore. Furthermore, a significant portion of the Profit Before Tax (PBT) is derived from non-operating income, which constitutes 156.05% of PBT, raising questions about the sustainability of its business model.

The quarterly results also indicate a net sales decline of 7.85% compared to the previous quarter, while the consolidated net profit showed a growth of 190.36%. Overall, Delhivery has experienced an adjustment in its evaluation, reflecting the mixed operational trends observed in its latest financial results.