Ecom Express Buyout Expands Delhivery’s Market Share By 25%

SUMMARY

Delhivery also said it retained about 50-55% of Ecom Express' volume, higher than the 30% retention it expected

CEO Barua added that the impact of the acquisition on Delhivery’s financial numbers in Q1 was limited as the rise in volume was only seen towards the end of June

Delhivery expects to incur an integration cost of INR 300 Cr due to the acquisition, the impact of which will be reflected in its profit and loss statement for Q2 and Q3

The acquisition of competitor Ecom Express has increased logistics major Delhivery’s market share by 25%, CEO Sahil Barua said during Delhivery’s Q1 earnings call.

“With Ecom’s acquisition, which was about 50% of our size, I believe our overall market share would have expanded by about 25% or so, possibly higher than that value,” Barua said.

The increase in the market share came on the back of a higher-than-expected retention of Ecom Express’ user base. Delhivery said it retained about 50-55% of Ecom Express’ volume, higher than the 30% retention it expected.

Ecom Express had a wider pin code reach than Delhivery. With the activation of the new locations, Delhivery is expected to reach 19,200 pin codes in the coming quarter against 18,857 pin codes in Q1 FY26.

Despite this, Delhivery expects to retain only seven facilities of Ecom Express in a combination of fulfillment and transport facilities. The company’s network rationalisation plan is currently underway, with a net retention of seven facilities identified for long-term use.

Barua added that the impact of the acquisition on Delhivery’s financial numbers in Q1 was limited as the rise in volume was only seen towards the end of June. The full benefit of the integration is expected to reflect in Q2, with July volume already running notably higher, he said.

Delhivery completed the acquisition of its rival on July 18, buying 99.87% stake for INR 1,369 Cr. Notably, the company initially said that it would acquire 99.4% stake in Ecom Express for INR 1,407 Cr.

Delhivery expects to incur an integration cost of INR 300 Cr due to the acquisition, the impact of which will be reflected in its profit and loss statement for Q2 and Q3.

Earlier today, Delhivery reported its fifth consecutive profitable quarter, clocking a 67% increase in consolidated net profit for Q1 FY26 to INR 91.1 Cr from INR 54.4 Cr in the year-ago quarter. While operating revenue grew 6% YoY to INR 2,294 Cr, EBITDA increased 53% to INR 149 Cr from INR 97 Cr in the previous year’s quarter.

Delhivery’s board, in its meeting today, also approved the appointment of Padmini Srinivasan, IIM Bangalore’s senior member of the faculty, and Yashish Dahiya, chairman and CEO of fintech major PB Fintech, as additional directors on the board under the category of independent directors.