Blue Dart Express’ (BDE) Q3FY23 performance undershot our and street estimates by 13% and 14%, respectively, owing to higher costs. Key points: 1) Number of shipments rose ~18% YoY to 87.9mn, possibly due to higher share of road cargoes; 2) higher costs resulted in gross margin/kg contracting 25% YoY (0.6% QoQ) to Rs13.2/kg.