Logistics services provider Delhivery said the integration of Ecom Express, acquired in April 2025, is largely complete, marking a key milestone in strengthening its e-commerce logistics capabilities and long-term growth strategy. The company said in a letter to shareholders that client, technology, and operational integration was completed within Q2FY26, while most redundant network infrastructure and contracts were wound down by Q3FY26, largely in line with or ahead of the original plan. The only remaining integration activities relate to a limited set of legacy non-Express contracts, covering select customers and facilities, which are expected to run off by Q1FY27, as planned.
At the time of the acquisition, Delhivery had estimated one-time integration costs of around ₹300 crore. However, the company now expects total integration expenses to be materially lower, supported by a smooth transfer of revenues, assets, and employees. Delhivery incurred ₹90 crore in Q2FY26 and an additional ₹35 crore in Q3FY26, primarily towards facility shutdowns, dismantling and transfer of automation equipment, exit from select contractual obligations, and employee transition costs. The company expects to incur a further ₹20–30 crore in Q4FY26, after which no material integration costs are anticipated.
With the Ecom Express integration nearing completion, acquisitions and strategic investments will continue to remain a key lever in Delhivery’s growth strategy. The company said it is actively evaluating opportunities across industry consolidation buyouts, minority investments in adjacent businesses, and early-stage investments in futuristic technologies. Delhivery emphasised that it will pursue transactions that are financially accretive and support long-term capability building, with disclosures made once regulatory thresholds are met.
On the technology front, Delhivery is stepping up investments across advanced logistics systems and automation. Key research areas include span serviceability and capacity management, dynamic pricing, full system-direction of mid-mile operations, and robotics-led automation to improve productivity in loading, unloading, and in-facility operations.
The company has also expanded the deployment of agentic AI solutions across internal operations, client servicing, and customer support. These systems interpret unstructured data from customer queries, delivery associate calls, and failed delivery attempts to drive faster and more accurate operational decisions. According to Delhivery, these initiatives have helped reduce return rates for e-commerce customers, improve appointment-based deliveries, lower in-facility dwell time for PTL freight, and enable faster dispute and claims resolution.
Delhivery recently rolled out Delhivery Maps across internal operations, leveraging proprietary location data, agentic AI algorithms, and curated points-of-interest datasets. Built on insights from over 4 billion shipments over the past decade, the platform offers highly accurate location intelligence. Its enterprise product, LocateOne, currently provides address standardisation, validation, geocoding, and reverse geocoding, with upcoming enhancements including improved accuracy and new APIs for address search and ETA calculation.
In addition, Delhivery’s R&D team, set up in Q3FY26, is developing in-house software and integrated hardware for mobile robotics and truck loading and unloading automation. These solutions are expected to reduce truck turnaround times and improve pallet movement efficiency across key facilities. The company is also working on automated storage and retrieval systems for fulfilment and freight service centres, along with in-house sortation solutions to handle higher volumes and greater complexity.
Operationally, Delhivery delivered a record 295 million Express parcels in Q3FY26, registering 43% year-on-year growth and 20% quarter-on-quarter growth. While October volumes were driven by festive season demand, high shipment volumes continued through November and December, reflecting sustained growth in e-commerce and market share gains driven by service quality and new client acquisition.
Looking ahead, Delhivery expects e-commerce volumes to grow at 15–20% annually over the medium term. The company believes it will continue to gain market share as competitors face structural challenges, including low or negative margins, rising costs, limited operating leverage, weaker technology capabilities, and capital constraints. For its key e-commerce customers, Delhivery positions itself as a strategic logistics partner, supporting long-term growth and profitability through service precision, lower return rates, and cost-efficient delivery.
Delhivery recorded revenue of ₹2,805crore in Q3FY26 as against ₹2,378 crore (18% YoY growth) with Adjusted EBITDA of ₹147 crore (5.3% margin) and reported EBITDA of ₹234 crore (8.4% margin). The company’ s net profit stood at ₹40 crore (₹25 crore) after Ecom integration costs and exceptional items (including provisions on account of the new labour code).