Delhivery completes Rs 1,407 crore Ecom Express acquisition, kicks off six-month integration plan

Delhivery completes Rs 1,407 crore Ecom Express acquisition, kicks off six-month integration plan

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26 Aug, 2025 12:21

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Logistics major Delhivery has completed its acquisition of rival Ecom Express for up to Rs 1,407 crore, marking a major consolidation in India’s competitive parcel delivery space.

The acquisition closed on July 18, the publicly listed company confirmed in a letter to shareholders while announcing its June quarter earnings.

“The financials are being consolidated from the date of the closing of the acquisition,” Delhivery said, clarifying that the first-quarter results do not reflect Ecom Express’ impact. However, integration is already underway and is expected to be completed over a six-month period.

Delhivery on August 1 reported a net profit of Rs 91 crore in the June quarter of FY26, up 67 percent from Rs 54.4 crore in the same period a year ago. The Gurugram-based firm had reported a profit of Rs 72.6 crore in the previous quarter.

Revenue from operations rose just six percent YoY to Rs 2,294 crore in Q1FY26, up from Rs 2,172.3 crore a year ago. On a sequential basis, revenue grew from Rs 2,191.6 crore in Q4FY25.

“As we have stated previously, integration costs would comprise costs at Ecom Express Ltd that would need to be incurred temporarily as we rationalize the network footprint and overhead costs,” the company said.

Delhivery reiterated that these expenses will not exceed the Rs 300 crore estimate it had provided at the time of the deal’s announcement. It also said that revenue retention from Ecom’s existing business is currently ‘trending ahead of plan’.

The Competition Commission of India had cleared the acquisition in June, allowing Delhivery to purchase up to 99.44 percent of Ecom Express’ equity and preference shares on a fully-diluted basis. The two companies had announced the deal in April, positioning it as a strategic consolidation aimed at boosting scale, improving asset utilisation, and eliminating overlapping costs across their delivery networks.

For Delhivery, which went public in 2022, the Ecom acquisition provides access to additional parcel volumes and infrastructure in a segment where it already holds a strong position. The company also expects a smoother post-merger integration process compared to its earlier acquisition of SpotOn Logistics in 2021, which had seen initial challenges around customer and volume absorption.

Delhivery plans to retain the majority of Ecom Express’ trained on-ground workforce, leveraging its own attrition cycle to absorb staff without significantly inflating payroll costs.

For Ecom Express, once considered a rising star in India’s logistics ecosystem with backing from CDC Group and Partners Group, the sale caps a period of prolonged challenges. The company had seen the exit of a key founder, the loss of major client Meesho, and multiple valuation markdowns in the run-up to the acquisition.

With the deal now closed, Delhivery is betting that economies of scale and a consolidated network will help lift margins and solidify its position as India’s dominant parcel logistics platform. The next six months will be crucial in determining how well the company executes on that promise.