Delhivery Can Rally 56% Says ICICI Securities Post Stellar Q4 Results, Maintains 'Buy'

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ICICI Securities Report

Partial-truck load segmental Ebitda margin expanded ~700bps QoQ in Q4 FY25 while maintaining a tonnage growth of 11.2% QoQ as Delhivery Ltd. renegotiated contracts to improve yields and scale benefits aided productivity gains.

While steadily improving margin trajectory in PTL was apparent over the last three-four quarters, the bump-up in Q4 FY25 is a positive surprise for investors. Express parcel business outlook (organic) has also materially improved in Q1 FY26E QTD.

We think this should improve further as the excess capacity in the industry is extinguished. We think investors will appreciate the clear communication on the integration costs from the acquisition.

Overall, Q4 FY25 results reinforce our thesis of improving organic market share in express parcel and material margin improvement. Reiterate Buy.

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