Delhivery Shares Soar 5% On Robust Q1 Earnings, Hopes for Better Times Ahead

Shares of logistics firm Delhivery surged over 5% on 4 August, scaling a 52-week high of ₹452.55, after the company posted a solid set of numbers for the June quarter. The performance, riding on operational efficiency and strong volume growth, has renewed optimism among investors and analysts alike, who now see better days ahead for the tech-driven delivery major.

Delhivery reported a 68.5% year-on-year rise in net profit to ₹91 crore, driven by tighter cost control and steady revenues. Operating income for the quarter grew 5.6% on year to ₹2,294 crore, with its flagship express parcel segment seeing a 14% rise in shipment volumes, touching 208 million parcels.

Revenue from express parcels rose 10% aided by volume growth, although partially offset by a 3% decline in yield due to customer mix. Meanwhile, partial-truckload (PTL) revenue jumped 17% as volumes grew 15%. On the profitability front, service Ebitda margin improved sharply, up 720 basis points to 10.6%, with the company maintaining a medium-term guidance of 16–18%.

In the post-earnings call, CEO Sahil Barua said the impact of Delhivery’s ₹300-crore acquisition of Ecom Express will begin to reflect from the July–September quarter. The integration process is expected to be phased over six months. According to Barua, the acquisition could boost Delhivery’s 3PL market share by 25%, as Ecom Express historically handled nearly half of Delhivery’s shipment volumes.

Brokerages have responded positively to this acquisition. Nuvama Institutional Equities expects Delhivery to now clock significantly higher volume retention of around 55–65%, up from earlier estimates of 30–35%. It sees the company gaining ground in both express parcel and PTL segments, driven by the consolidation and margin tailwinds.

“We’re raising our FY26 and FY27 Ebitda estimates by 19% and 20%, respectively,” Nuvama said in its note, while increasing the target price by 22% to ₹525. The brokerage retained its ‘buy’ rating, citing robust Q1 numbers and the Ecom acquisition as key catalysts.

JM Financial echoed a similar view, highlighting that integration costs for Ecom Express are likely to be lower than expected, which would ease pressure on near-term margins. The firm raised its target price to ₹500, pointing to improving fundamentals and lower capex intensity going forward.

Following the trend, Motilal Oswal Financial Services also lifted its price target for Delhivery by 4% to ₹500, maintaining its ‘buy’ stance. MOFSL expects scalable growth to continue, fuelled by network synergies, operational efficiency, and strategic acquisitions. The brokerage projects margins to sustain in the 16–18% range over the next two years, with forecasted CAGR of 14% in sales, 38% in Ebitda, and 53% in adjusted profit between FY25 and FY28.

With steady volume growth, improving margins, and the Ecom integration expected to bolster scale and pricing power, Delhivery appears well-positioned for its next leg of growth.