Shares of Delhivery experienced a decline of over 6 percent on Monday following the company’s announcement of a slight dip in quarterly profit, despite strong revenue growth. Brokerages generally retained a positive outlook on the logistics firm’s operational performance.
The pressure on the stock arose after Delhivery revealed its earnings for the March quarter, with investors responding to reduced profitability and costs associated with integration, even as express parcel volumes and transportation business showed robust growth.
For the March quarter of FY26, Delhivery reported a consolidated net profit of ₹72.39 crore, down from ₹72.55 crore in the same period last year. Total income rose by 26.31 percent year-on-year to ₹2,909 crore, compared to ₹2,303 crore in Q4FY25.
For the entire FY26, consolidated profit after tax fell by 6.81 percent year-on-year to ₹152.54 crore, down from ₹162.11 crore in the previous financial year.
UBS maintained a buy rating on the stock and increased the target price to ₹630. The brokerage highlighted that Delhivery’s strong fourth-quarter revenue of ₹28.5 billion represented a 30 percent year-on-year increase, exceeding expectations. This growth was attributed to strong performance across core transport sectors, including express and part truckload (PTL).
UBS emphasized that profitability exceeded estimates due to continued margin expansion, bolstered by healthy volume momentum and successful integration of Ecom Express, alongside sustained efficiency gains. The brokerage also noted growth in express parcel volumes despite seasonal patterns favoring the December quarter.
Goldman Sachs kept a neutral rating with a target price of ₹480. They indicated that Q4FY26 revenue of ₹28.5 billion was 6 percent above their estimates, while express parcel volumes surged by 73 percent year-on-year to reach 306 million parcels, exceeding an annual total of 1 billion for FY26.
However, Goldman Sachs pointed out that revenue growth of only 46 percent suggested lower realisations. PTL volumes increased by 20 percent year-on-year while other segments displayed weak growth. They reported adjusted EBITDA of ₹1,512 million, which was below their expected ₹1,974 million, affected by higher corporate overheads and ₹220 million of integration costs from the Ecom Express acquisition. Additionally, the brokerage noted Delhivery turned free cash flow positive ahead of its anticipated FY27 timeline, supported by a net working capital cycle of 11 days.
Citi maintained a buy rating, raising its target price to ₹565. They observed that express parcel volumes of 306 million increased by 4 percent quarter-on-quarter, surpassing estimates by 9 percent. This growth was attributed to consolidation in third-party logistics and increased outsourcing from a leading e-commerce platform.
Following the acquisition of Ecom Express, Citi reported that Delhivery’s e-commerce volumes in FY26 grew by 40 percent year-on-year, while PTL revenues rose by 19 percent. The adjusted EBITDA margins for the transportation business expanded by approximately 300 basis points to over 6 percent. Citi expects reductions in capital expenditure and working capital needs will enhance network utilization and free cash flow in the coming years, predicting improvements to adjusted EBITDA and free cash flow margins to 8 percent and 2.5 percent, respectively, by FY28.
Elara Capital, a domestic brokerage, reaffirmed its buy rating with a target price of ₹620, identifying Delhivery as a top sector pick. The brokerage noted the company’s resilience amid geopolitical disruptions, asserting that over 90 percent of contracts include clauses for fuel price escalation pass-through. Elara also expressed a positive valuation based on Delhivery’s strong execution in express parcels, PTL, and supply chain management, while introducing estimates for FY29.
Published on May 18, 2026.
