Delhivery Q1 Results Review: Analysts Upbeat On Volume Gains, Margin Expansion — Details Here

Macquarie maintained its "Outperform" rating on the stock and also highlighted the company's position in "The India Diviner: Super 6s—Best Ideas."

The brokerage said that Meesho is insourcing about two-thirds of its volume. "We do not see this dynamic as an incremental headwind for FY26." Macquarie further explained that while the addressable opportunity with the e-commerce platforms has reduced, "we see strong market-share gains along with the Ecom Express acquisition."

On the results front the brokerage said Delhivery's FY26 results were above "Visible Alpha (VA) consensus," which was largely driven by higher profitability for the Part Truckload and Supply Chain Services segments.

Macquarie also highlighted that the company's Express Parcel volume grew 14% YoY and was largely in line with expectations.

On key metrics, the brokerage noted that "Service Ebitda margin for the quarter was steady at 16%" (company guidance 16-18%).

It also noted that "Part Truck Load volume was up 15% YoY, flat sequentially." And "Service Ebitda margin was steady at 11%. While Supply Chain Services revenue declined 21% YoY."

The brokerage further added that it sees upside to consensus' Express Parcel volume growth and PTL margin forecasts. "We also see upside to company guidance for a 16-18% service Ebitda margin."

Morgan Stanley hiked its target price for the stock by 31%, increasing it from Rs 321 to Rs 423. The brokerage noted that "Delhivery's management commentary and volume trends in express parcel should help keep optimism high on the stock."

On the Q1FY26 results, the brokerage noted the earnings as a mixed bag but remained bullish on Express parcel volumes, stating that it surprised positively, and commentary indicates a strong uptick in 2Q as well on three months' benefit from Ecom Express integration.

Morgan Stanley also highlighted management's confidence in sustaining "20% volume growth in the PTL segment along with margins improving to 16-18% in the next 2 years as volumes move higher."

It further highlighted management's intention to retain "55-65% of Ecom's revenues versus the earlier estimate of over 30% with a limited increase in its overhead costs over the coming quarters."

Morgan Stanley also expects further improvement in working capital trends and capex to come down to 4% of revenues over the coming years.

The brokerage also highlighted the company's claim that it has "gained market share from other 3PL companies and has seen volume growth from all large horizontal e-commerce players." It indicated that there has been a flight to safety towards stronger networks, which has benefited Delhivery.

"We think this volume market share gain could be sticky and benefit the company on a structural basis," it added.