Sandeep made an excellent comeback to the playing XI after missing the last match with figures of 4/20 in four excellent overs. The right-armer produced superb swing and movement off the pitch to trouble the off-colour Delhi batting line-up to no end.
The 23-year-old clinched three wickets in his first three overs to put the hosts in the driving seat.
This is the second lowest total in this year's IPL after Royal Challengers Bangalore were dismissed for 49 during their 82-run loss to Kolkata Knight Riders at the Eden Gardens last week.
Fast bowler Varun Aaron and left-arm spinner Axar Patel picked up a couple of wickets each for Punjab.
Delhi lost their first wicket in the opening over when comeback man Sam Billings offerred an outside edge to an outswinger from Sandeep for an easy catch to Punjab wicket-keeper Wriddhiman Saha.
Delhi were off to a slow start and got their first boundary in the third over when Sanju Samson dispatched a Sandeep delivery to the wide mid-off fence.
The Punjab pacer got his revenge a ball later when Sanju tried to flick one off his pads to the mid-wicket region. But the ball did not swing as much as he had expected, and taking the toe of the bat ballooned up for a simple catch by Rohit Sharma at mid-off.
Sandeep picked up his third wicket in his next over with an excellent caught and bowled effort to send Shreyas Iyer back to the pavilion. Iyer had attempted to drive the ball past the bowler but was outfoxed by the lack of pace.
Delhi continued to struggle and Patel picked up a wicket when Karun Nair misjudged the line of the ball only to see it crash into his off-stump.
Rishabh Pant was then trapped leg before by Glenn Maxwell and Patel claimed his second victim in the form of Chris Morris as Delhi lost their entire top and middle order within first nine overs.
Delhi Daredevils: 67 in 17.1 overs (Corey Anderson 18; Sandeep Sharma 4/20) vs Kings XI Punjab.
DD 67 all-out:— Bharath Seervi (@SeerviBharath) April 30, 2017
- DD's lowest total
- Joint-lowest first inns total for any team in IPL#DDvKXIP