Delhivery Ltd. shares fell nearly 5% after the company reported its Q4FY26 results, even as brokerages largely retained bullish views on the stock, pointing to strong revenue growth, rising parcel volumes and improving operational efficiency.
UBS maintained its ‘Buy' rating on the logistics company and raised its target price to Rs 630, while Citi reiterated a ‘Buy' call with a target price of Rs 565. Goldman Sachs stayed more cautious with a ‘Neutral' rating and a target price of Rs 480, flagging pressure on realisations and higher overhead costs.
The company reported revenue of Rs 2,850 crore for the March quarter, up 30% year-on-year from Rs 2,192 crore. EBITDA rose 79.8% to Rs 214 crore from Rs 119 crore a year earlier, while EBITDA margin improved to 7.5% from 5.4%.
Net profit remained largely flat at Rs 72.3 crore versus Rs 72.5 crore in the year-ago period.
Citi highlighted that express parcel volumes rose to 306 million during the quarter, up 4% sequentially and 9% ahead of its estimates, reflecting continued gains from third-party logistics consolidation and increased outsourcing by a leading horizontal e-commerce platform.
The brokerage said Delhivery's operational performance reflected robust volume momentum and effective integration of Ecom Express. It added that profitability gains were driven by sustained efficiency improvements and better segment-level execution.
Citi also noted that Delhivery's e-commerce volumes in FY26 rose 40% year-on-year following the Ecom Express acquisition, while part-truckload revenues increased 19%. Transportation business adjusted EBITDA margins expanded by around 300 basis points to above 6%.
Goldman Sachs acknowledged the strong revenue growth and surge in express parcel volumes, which climbed 73% year-on-year to 306 million. However, it noted that revenue growth lagged volume growth, indicating lower realisations.
The brokerage also said adjusted EBITDA missed its estimates due to higher corporate overheads and Rs 220 million of integration-related costs incurred during the quarter.
Delhivery Share Price Today
Delhivery Ltd. Share Price Today
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The scrip fell as much as 5.29% to Rs 453.10 apiece intraday on Monday at 9:42 a.m. This compares to a 1.14 fall in the NSE Nifty 50 Index.
It has risen 41.58% in the last 12 months and 12.52% year-to-date. Total traded volume so far in the day stood at 3.25 times its 30-day average. The relative strength index was at 35.79.
Out of 23 analysts tracking the company, 19 maintain a 'buy' rating, three maintain a "hold", and one maintain a "sell" rating, according to Bloomberg data. The average 12-month consensus price target of Rs 559 implies an upside of 23.5%
ALSO READ: Delhivery Q4 Results: Profit Declines 0.3%, Revenue Rises 30% To Rs 2,850 Crore
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