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Is Delhivery (NSE:DELHIVERY) Weighed On By Its Debt Load?

Simply Wall St · 11/07/2025 00:26

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously said that 'Volatility is far from synonymous with risk.' So it seems the smart money knows that debt - which is usually involved in bankruptcies - is a very important factor, when you assess how risky a company is. Importantly, Delhivery Limited (NSE:DELHIVERY) does carry debt. But should shareholders be worried about its use of debt?

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Why Does Debt Bring Risk?

Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. In the worst case scenario, a company can go bankrupt if it cannot pay its creditors. While that is not too common, we often do see indebted companies permanently diluting shareholders because lenders force them to raise capital at a distressed price. Having said that, the most common situation is where a company manages its debt reasonably well - and to its own advantage. When we think about a company's use of debt, we first look at cash and debt together.

What Is Delhivery's Debt?

You can click the graphic below for the historical numbers, but it shows that Delhivery had ₹594.9m of debt in September 2025, down from ₹794.6m, one year before. But it also has ₹18.8b in cash to offset that, meaning it has ₹18.2b net cash.

debt-equity-history-analysis
NSEI:DELHIVERY Debt to Equity History November 7th 2025

How Healthy Is Delhivery's Balance Sheet?

We can see from the most recent balance sheet that Delhivery had liabilities of ₹17.4b falling due within a year, and liabilities of ₹14.3b due beyond that. On the other hand, it had cash of ₹18.8b and ₹15.0b worth of receivables due within a year. So it can boast ₹2.13b more liquid assets than total liabilities.

This state of affairs indicates that Delhivery's balance sheet looks quite solid, as its total liabilities are just about equal to its liquid assets. So while it's hard to imagine that the ₹330.9b company is struggling for cash, we still think it's worth monitoring its balance sheet. Succinctly put, Delhivery boasts net cash, so it's fair to say it does not have a heavy debt load! When analysing debt levels, the balance sheet is the obvious place to start. But ultimately the future profitability of the business will decide if Delhivery can strengthen its balance sheet over time. So if you're focused on the future you can check out this free report showing analyst profit forecasts.

Check out our latest analysis for Delhivery

In the last year Delhivery wasn't profitable at an EBIT level, but managed to grow its revenue by 9.1%, to ₹94b. We usually like to see faster growth from unprofitable companies, but each to their own.

So How Risky Is Delhivery?

Although Delhivery had an earnings before interest and tax (EBIT) loss over the last twelve months, it made a statutory profit of ₹1.4b. So when you consider it has net cash, along with the statutory profit, the stock probably isn't as risky as it might seem, at least in the short term. We'll feel more comfortable with the stock once EBIT is positive, given the lacklustre revenue growth. The balance sheet is clearly the area to focus on when you are analysing debt. But ultimately, every company can contain risks that exist outside of the balance sheet. To that end, you should be aware of the 1 warning sign we've spotted with Delhivery .

If you're interested in investing in businesses that can grow profits without the burden of debt, then check out this free list of growing businesses that have net cash on the balance sheet.