Delhivery Faces Financial Challenges Amidst Strong Revenue Generation and Mixed Stock Performance

Delhivery, a small-cap player in the transport services industry, has recently undergone a financial trend adjustment reflecting its performance in the quarter ending September 2025. The company reported a notable operating cash flow of Rs 528.33 crore, alongside a higher profit after tax (PAT) of Rs 113.23 crore for the nine-month period. Additionally, net sales for the quarter reached Rs 2,559.32 crore, marking a strong revenue generation capability.
However, the company faced significant challenges, particularly with its quarterly PAT, which fell to Rs -50.38 crore, a stark decline compared to the previous four-quarter average. The debt-equity ratio stood at 0.48 times, indicating a higher leverage position, while the operating profit to interest ratio was recorded at a low of 1.75 times. Furthermore, the debtors turnover ratio was at its lowest at 0.63 times, and the interest expense for the quarter was the highest at Rs 38.86 crore, contributing to a negative profit before tax of Rs -145.44 crore.

In terms of stock performance, Delhivery has shown a mixed return compared to the Sensex, with a year-to-date return of 30.39% against the Sensex's 6.84%. Over the past year, the stock has outperformed the index, returning 27.14% compared to the Sensex's 3.86%. However, in the short term, the stock has faced declines, with a 5.06% drop over the past week.