Shares of logistics major Delhivery surged 5 percent on Monday, August 4, to hit a 52-week high of ₹451.50, following the announcement of its June quarter results (Q1FY26). The upbeat performance—driven by improved margins, volume expansion, and operational efficiency—sent investor sentiment soaring.
Delhivery reported a 68.5 percent year-on-year rise in net profit to ₹91 crore, aided by stable revenues and tighter operations. Revenues grew 6 percent YoY to ₹2,294 crore, driven by solid volume growth across business verticals. Operating profit (EBITDA) for the quarter rose by 53 percent to ₹149 crore, while EBITDA margin expanded to 6.5 percent from 4.5 percent last year.
The company’s Express Parcel business, a key growth driver, saw shipments rise 14 percent YoY to 208 million, contributing to a 10 percent revenue jump to ₹1,403 crore. Its part truckload (PTL) business also performed well, with tonnage and revenue increasing 15 percent and 17 percent, respectively. Service EBITDA margin for PTL improved sharply to 10.7 percent, up from 3.2 percent in Q1FY25.
Board Changes in Focus
CEO Sahil Barua, during the post-earnings call, said that the integration of Ecom Express, acquired for ₹300 crore, will begin reflecting from the July–September quarter and will be spread over six months. The deal is expected to boost Delhivery’s 3PL market share by around 25 percent, as Ecom Express handled almost half of Delhivery’s volume.
In a separate development, the company announced that Srivatsan Rajan, the longest-serving independent director, will step down by September-end. Yashish Dahiya, founder of PB Fintech, and Padmini Srinivasan will join the board as independent directors.
Mixed Brokerage Reaction: From Upgrades to Underperformance
Motilal Oswal Financial Services (MOFS) maintained its ‘Buy’ rating and raised the target price to ₹500 from ₹480. The brokerage highlighted Delhivery’s scalable growth, improved margins, and strong network synergies. MOFS believes the company’s core transport businesses will continue to drive profit-accretive growth, bolstered by asset optimisation and strategic acquisitions. It projects margin sustainability of 16–18 percent over the next two years, and forecasts a CAGR of 14 percent in revenue, 38 percent in EBITDA, and 53 percent in adjusted PAT for FY25–28.
Meanwhile, Kotak Institutional Equities also echoed a bullish stance with a ‘Buy’ rating and ₹500 target. The brokerage noted a 77 percent sequential rise in profit before tax, despite challenges like adverse weather, operational disruptions from Operation Sindoor, and wage hikes. Kotak credited Delhivery’s business model efficiency, highlighting that Express Parcel volume additions were absorbed seamlessly within existing networks and without increasing overheads. It also pointed to the continuing ramp-up in the PTL (part truckload) segment as a key driver, reinforcing Delhivery’s growing ability to handle volume variability. The firm sees further upside as the company reorients its portfolio and scales up investments in supply chain services and new business lines.
In contrast, Jefferies maintained an ‘Underperform’ rating with a price target of ₹350. The firm flagged that Q1 EBITDA missed estimates by 35 percent, primarily due to a timing mismatch in volume realisation from the Ecom Express acquisition. Adjusting for the 30 million Ecom volumes, Jefferies said Express Parcel growth was roughly in line with its projections. However, it noted that logistics costs form a significant part of total sales for e-commerce marketplaces, making operational efficiency critical. This, the brokerage said, remains a structural overhang for third-party logistics players like Delhivery.
Delhivery stock performance
The stock jumped as much as 5 percent to its day’s high of ₹451.50, also its 52-week high. It has now risen over 90 percent from its 52-week low of ₹236.80, hit in March 2025.
Delhivery shares have gained 23% year-to-date and added just 3.3% in the last one year. It rose 11 percent in July, extending gains for 5th straight month. It added 7 percent in June, 17 percent in May, 20 percent in April and 2 percent in March. Before that, it fell 5.6 percent in February and 16 percent in January.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
