Blue Dart Express shares surged 6.77% to ₹5,509.50 in Monday's trading session following the announcement of strong Q1 FY27 performance. According to The Economic Times, brokerage firm Nuvama retained its 'Buy' rating on the stock, citing strong execution and growth prospects. The brokerage noted that profit after tax (PAT) surged 81% YoY to ₹88.5 crore, significantly exceeding its estimates and consensus expectations. Following the strong quarter, Nuvama raised its FY27E and FY28E earnings per share (EPS) estimates by 4% and 2% respectively.
Blue Dart delivered exceptional first-quarter results for FY27, with consolidated net profit surging 79.6% year-on-year to ₹88 crore compared to ₹49 crore in the corresponding quarter last year. According to The Economic Times, revenue from operations increased 15.1% year-on-year to ₹1,658 crore from ₹1,441 crore in Q1 FY26. The company's ability to achieve profit growth significantly faster than revenue suggests improved operational efficiency and better conversion of sales into earnings during the quarter. Balfour Manuel, Managing Director, commented that the performance reflects focused execution, disciplined network management and continued customer confidence in the Blue Dart brand.
Blue Dart's operational efficiency improvements were evident in its margin performance, with EBITDA margin expanding significantly to support the strong profit growth. As reported by The Economic Times, the EBITDA margin improvement reflects better cost management and disciplined execution despite a challenging business environment. The margin expansion is particularly positive for logistics companies and suggests disciplined cost management amid competitive pressures. The strong quarterly performance was supported by higher revenue traction, improved operational efficiency, and expansion in operating margins.
The strong financial performance was driven by robust shipment volumes that remained strong throughout the quarter, as reported by Reuters. Blue Dart, which is part of the German logistics giant DHL Group, was helped by cost control measures despite pressures from increased aviation and ground fuel costs, a key expenditure for the company. The results underscore the impact of a challenging macroeconomic environment, but Blue Dart continued to drive business momentum through strong service quality and efficient network operations. The company leveraged its integrated air and ground network, extensive domestic reach and technology-enabled operations to maintain service quality and network efficiency during the quarter.
Nuvama believes Blue Dart is well positioned to benefit from the ongoing consolidation in the e-commerce parcel market, which contributed around 30-31% of revenue in FY26. As reported by The Economic Times, the brokerage has retained its 'Buy' recommendation, valuing Blue Dart at 38x June 2028 earnings, and revised its June 2027 target price to ₹7,350 from the earlier ₹6,900. At the current market price, the stock trades at approximately 28x FY28E earnings. Looking ahead, the company said it will continue to strengthen its network, improve operational productivity, accelerate digital enablement and invest in customer-centric and sustainable logistics capabilities to support long-term growth in India's expanding express delivery and e-commerce ecosystem.
