Shares of Delhivery surged 13% on May 19 as investors lapped up the stock, buoyed by the company’s solid turnaround as it swung back into profit in the March quarter.
The logistics major delivered a net profit of Rs 73 crore, staging a sharp turnaround from the net loss of Rs 69 crore that it had reported a year ago. The stellar bottomline performance was accompanied by a near 6% rise in revenue to Rs 2,192 crore.
Aiding the company’s Q4 performance was also an over 8% drop in expenses to Rs 2,249 crore, which helped Delhivery expand its EBITDA margins by 322 basis points on year to 5.4%.
Meanwhile, the company’s earnings performance for the full fiscal year 2025 also impressed investors as it managed to clock in a profit of Rs 162 crore for the first time ever, a reversal from a loss of Rs 249 crore in the prior year.
Looking ahead, analysts at Nuvama Institutional Equities believe Delhivery to be well-positioned to capitalise on two key trends--consolidation in the express parcel space, especially with the pending acquisition of Ecom Express awaiting CCI approval and strong momentum in its partial truckload (PTL) business. The stellar revenue and margin performance of Delhivery’s PTL business was a major growth driver in lifting earnings in Q4.
With PTL scaling up rapidly and margins improving, analysts at Nuvama also revised their EBITDA estimates upwards by 8% and 13% year-on-year, driven largely by better profitability in the segment.
Topping it up, Nuvama also revised its price target for the stock by over 13% to Rs 430 while retaining its ‘buy’ call on the stock.
Nuvama also holds the view that Delhivery’s sustaining profitability, reduced capex spends, aggressively growing PTL with robust margins and acquisitions will boost its future performance.
