Delhivery expects to turn in net profits by FY 2025: CEO Sahil Barua

economictimes.indiatimes.com:

Delhivery is expected to breakeven on an adjusted EBITDA level during the current financial year, cofounder and chief executive Sahil Barua said in post earnings call on Saturday. This comes a day after its losses narrowed 78% year-on-year to Rs 89.4 crore for the quarter ended June 30.

The Gurgaon-headquartered company will look to hit net profitability by the end of fiscal year 2025 or the beginning of FY 2026.Also read | Won key contracts in Q1, expect to reflect in coming quarters: Delhivery CEO Sahil Barua It is expected to have grown at a higher scale than the broader market, leading it to believe that it has gained about 1-2% in market share, Barua added. On Friday, Delhivery reported a net loss of Rs 89.4 crore on revenue from operations of Rs 1,929.8 crore.

On a sequential basis, quarterly losses narrowed to almost half from Rs 158.7 crore in the January-March quarter. Quarter-on-quarter revenue grew 3.8%.Also read | Zomato Delhivers profits, Freshworks en route; and other top tech & startup stories this week Delhivery said the largest share of its yearly cost of expansion have already being incurred in this quarter, and will therefore see its costs stabilize or fall for the succeeding quarters as gross margins keep improving, the firm’s senior management said on Saturday.

It is pulling out “low-margin” and “unprofitable” customers to improve the company’s customer mix. In April, a report from Bernstein said Delhivery had seen its market share in ecommerce shipments slip to an estimated 21.5% in 2022-23 (April-March), from 23% in FY22, and that the same is expected to further fall to 19% by FY30.Bernstein’s report also said that while the year-on-year growth in Delhivery’s ecommerce parcel volumes are expected