Revenue surge on track; growth bets early but accelerating

Delivered revenue 204.2 Cr, +42.2% YoY

Delivered PAT 42.2 Cr, +25.1% YoY

Delivered QoQ +10.1%

Implies ~47 Cr prior year; 55 Cr is directionally sound

YoY 42% and QoQ 10% despite tough quarter; internally consistent

Acceleration credible given 2.5x YoY base; no external contradiction

Sequential growth 44% (vs 20% Q4 FY26), driven by AI-led workflows and faster new-city ramp. First hub 60–70% toward profitability milestone.

Highest quarterly device sales (both AI and non-AI), record number, generating future high-margin renewal revenue (first renewals ~70%, second/third ~80–85%).

Core +21% YoY despite negative industry trends; tolling +16% vs NETC single digits. Market share consolidation evident.

Loyalty spend discretionary during supply shortage; crude price recovery partial. No guidance on full recovery timing; cautious tone remains.

Adjusted EBITDA 16% YoY (55 Cr vs 47 Cr), 60–85% revenue conversion maintained. Tax offsetting masks run-rate PAT growth, but cash earnings on track.

14 cities now (initial 4 + 10 new). Heavy investment phase. Every quarter playbook improves; 70–80% of new cities growing faster than first four.

April sharp contraction normalized in May/June. Tolling back to BAU. Fuel partial recovery; full recovery timing uncertain.

Positive for industry (space hard, needs investment, few qualified competitors). Near-term no threat. Will monitor. Focused on market share and compounding.

Tolling, telematics, classifieds onboard new users. Loads infrequent use case; usage driven by high-frequency (payments, telematics). Even 50%+ super loads adoption won't move usage metric.

Layered strategy (experiment, onboard, scale). AI transformation key. First hub 60–70% there. 70–80% of new cities faster. Will provide detail in 3–4 quarters.

Framework: new-new (40–50% of super loads placements AI-enabled). Old-new (KYC headcount -85%, cost -65–70%). Old-old continues. Multiple processes live.

First renewal early 70%. Second/third renewals early–late 80s. Higher-end products (fuel sensor) 5–10 bps better. High-margin revenue flow.

Next 2 quarters deferred tax offset. Q4 reassess loss utilization. Expect minimal effective tax until losses absorbed.

Telematics device investment. Depreciate over 2 years. Upfronted but subscription renewals flow to EBITDA directly. Good long-term sign.

Changed to tolling-only metric due to fuel uncertainty. Prior year was tolling + fueling combined. Now standalone.

Management maintains strategy (core +profitability, super loads growth invest, vehicle finance to profitability by year-end) but no numeric FY27 revenue goal.

Delivered every quarter; operating leverage story consistent. Growth business investments offset temporarily.

Stated at beginning of year, reaffirmed. On track but no PAT $ figure given.

Super loads only 5% of hubs penetrated; first hub 60–70% to profitability milestone. Vehicle finance convergence timeline vague. Heavy investment phase masks profitability visibility.

Fuel business margin dependent on crude prices and loyalty spend. April contraction severe; May/June recovery partial. Full recovery timeline unclear.

Delhivery filed plans to enter logistics fintech. Management downplays near-term threat due to ground complexity and execution barriers, but medium-term competitive intensity could pressure margins.

April 2026 showed sharp macro contraction in inter-city truck movement. Recovery followed but underlying economic sensitivity remains. West Asia conflict cited; geopolitical/trade risks persist.

First renewal rates early 70%, second/third late 80s. Mix of GPS and higher-end products (fuel sensor). If newer cohorts have lower retention, future EBITDA margin upside diminishes.