Shares of Delhivery rallied up to 9% in early trade on Monday, November 2, after the logistics company returned to profit in Q2 FY27, supported by growth in its transport services business, which includes e-commerce shipments and part-truckload (PTL) operations.
The stock also gained after several brokerages maintained their positive view on the company following its September quarter results, even as Jefferies and Citi lowered their price targets.
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Delhivery Q2 Results: Key Highlights
- Net profit: Delhivery reported a consolidated net profit of Rs 41 crore against a loss of Rs 50 crore in the corresponding quarter last year.
- Revenue: Revenue from services rose 19.8% year-on-year to Rs 3,066 crore from Rs 2,559 crore.
- Ebitda: Reported Ebitda increased to Rs 205 crore from Rs 68 crore in the year-ago quarter.
- Margins: Ebitda margin expanded to 6.7% from 2.7%, reflecting improved operating performance.
Also Read: Delhivery Q2: Logistics Major Swings To Profit; EBITDA, Margin Jumps Multifold
JPMorgan On Delhivery | Maintains Overweight
- JPMorgan retained its price target of Rs 590, with the brokerage positive on the company's earnings outlook.
- It highlighted 20% revenue growth to Rs 3,070 crore and a 37% increase in reported Ebitda to Rs 205 crore.
- Strong express parcel volumes and improved PTL margins indicate better operating momentum. The brokerage raised its FY27 EPS estimate by 10.9% and expects adjusted Ebitda margins to improve sharply in the second half.
Jefferies On Delhivery | Maintains Buy
- Jefferies cut its price target to Rs 470 from Rs 540, despite retaining its positive rating.
- Adjusted Ebitda exceeded estimates despite the deferred festive season, with price increases and operating leverage supporting margins.
- Express parcel growth benefited from lower Meesho insourcing and new initiatives. Realisations also improved sequentially after six quarters of decline.
- PTL momentum remained healthy, while supply-chain margins improved as new contracts stabilised. However, increasing Meesho insourcing remains a medium-term risk.
Kotak On Delhivery | Maintains Buy
- Kotak retained its fair value of Rs 550, citing improving profitability across business segments.
- Reported Ebitda grew 29% year-on-year, beating estimates by 16%, supported by stronger service margins.
- This brokerage also pointed out that improving express parcel yields and contributions from PTL and supply-chain services are supporting profitability. Working capital also declined to five days of sales, although Meesho insourcing remains a concern.
Citi On Delhivery | Maintains Buy
- Citi reduced its target price to Rs 545 from Rs 570, while retaining its Buy rating.
- Margins exceeded estimates despite softer volumes, supported by inflation pass-through and a better shipment mix.
- PTL volumes missed estimates, but higher yields supported profitability. Industry consolidation has improved pricing conditions, while D2C volumes remain strong.
- Automation, robotics, and AI investments could support operating leverage. However, higher growth investments and corporate overheads prompted cuts to adjusted Ebitda estimates. Citi also raised its e-commerce volume estimates on an improved growth outlook.
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