Despite reporting strong Q4 results, Delhivery Ltd. shares declined as much as 5.09% to ₹451.55 on May 18, 2026, shedding ₹24.20 from the previous close of ₹475.75, as per The Economic Times. The stock touched an intraday low of ₹451 against a day's high of ₹472.95, with the 52-week range spanning ₹332.30 to ₹490, placing today's level approximately 8% below the annual peak. The company delivered impressive operational performance with revenue increasing 26.31% to ₹2,850 crore in the fourth quarter compared to ₹2,192 crore in the previous year. However, the stock's valuation at 225.94x P/E ratio means the market does not forgive even a 9% shortfall in adjusted PAT, which came in at ₹70.80 crore against Motilal Oswal's estimate of ₹77.40 crore. The profit after tax declined marginally to ₹72.39 crore from ₹72.55 crore last year, meaning net profit was flat year-on-year despite strong operational metrics. As per Inc42, the company's consolidated net profit for Q4 FY26 was nearly unchanged at ₹72.4 crore versus ₹72.5 crore a year earlier, while sequentially it rose 83.3% from ₹39.6 crore.
The company's operational performance was genuinely strong, with EBITDA rising 80% to ₹210 crore with a 7.5% margin, up 210 basis points year-on-year and 10 basis points sequentially, as reported by The Economic Times. Express parcels volume surged 73% to 306 million packages after the Ecom Express network integration, with service EBITDA margin at 18.8%. PTL tonnage grew 20% year-on-year with service margins at 13.5%. The combined transportation business reported a 17.5% service EBITDA margin, the highest in Delhivery's public company history. New services Delhivery Direct and Rapid are scaling effectively, with management guiding for 15-20% annual volume growth and 16-18% service margins to be sustained over the next two years. The company reported FY26 express parcel volumes of 1 billion shipments and PTL freight volume of around 2 million metric tonnes, marking a 17% year-on-year increase.
Brokerages remained largely positive on the stock with 19 out of 23 analysts having 'buy' ratings, three having 'hold' ratings, and one having a 'sell' rating, according to Bloomberg data. Motilal Oswal maintained its 'buy' rating despite the PAT miss, with a price target of ₹580 per share, implying 28.5% upside from the current level of ₹451.55. UBS has a 'buy' rating with a price target raised from ₹600 to ₹630 per share, while Citi maintains a 'buy' rating with a price target of ₹565 per share. Goldman Sachs has a 'neutral' rating with a price target of ₹480 per share, flagging pressure on realizations and higher overhead costs. Nuvama has raised its earnings estimates for the company, citing several reasons including continued market share gains in PTL and Express, improving segment economics and scaling up of new business verticals. The stock has gained 13% so far in 2026 but has not managed to sustain above its issue price. The average 12-month consensus price target of ₹559 implies an upside of 23.5%.
Following the acquisition of Ecom Express, Delhivery's e-commerce volumes in FY26 increased 40% from last year, while PTL revenues were up 19% and the transportation business' adjusted EBITDA margins expanded 300 basis points to 6%, as reported by CNBC TV18. Citi noted that Delhivery's operational performance reflected robust volume momentum and effective integration of Ecom Express, with profitability gains driven by sustained efficiency improvements and better segment-level execution. The company highlighted that its FY26 consolidated performance turned free cash flow positive at ₹89 crore, while revenue from services crossed ₹10,486 crore. Looking ahead, Citi expects adjusted EBITDA and free cash flow margins to be 9% and 2.5% in FY28 compared to 4.4% and less than 1% in FY26, respectively, on revenue growing at a Compounded Annual Growth Rate of 19%. Motilal Oswal's thesis suggests that the Ecom Express integration is now complete and the cost absorption phase is over, meaning that Q1FY27 onwards, revenue growth will translate more cleanly to PAT growth without the integration drag.
The market's reaction is a valuation story, not an operational one, with the 225.94x P/E ratio at the heart of the current selloff. At 225x trailing earnings, Delhivery is priced for near-perfect execution every single quarter, with the stock's valuation embedding a long-duration growth thesis including Motilal Oswal's 13%/33% revenue/EBITDA CAGR over FY26-28 and sustained 16-18% service EBITDA margins. Every quarter that delivers on or above those expectations justifies the multiple, while every quarter that misses — even marginally — triggers a disproportionate price reaction because the margin of safety at 225x is essentially zero. The company marked a milestone year as revenue crossed ₹100 billion, having delivered over 1 billion express parcels and achieved around 2 million MT of PTL freight volumes. With FY26 full-year PAT declining year-on-year and the stock at 225x those earnings, every quarter is a test of whether the investment case remains intact, and Q4FY26, with its 9% PAT miss against estimates, was not quite sufficient to pass that test at current prices.
