Delhivery shares tumbled nearly 5% on Monday, falling 5.29% to ₹453.10 per share on the NSE despite reporting strong Q4FY26 results that exceeded expectations. The stock continued to trade around 5% lower, significantly underperforming the benchmark NSE Nifty 50 index which declined only 1.14%. According to reports from Business Standard, the market weakness hit sentiment even after the logistics company posted solid quarterly earnings with significant margin expansion and robust parcel growth.
As reported by Business Standard, Delhivery's Q4FY26 revenue surged 30% year-on-year to ₹2,850 crore, while Ebitda jumped 79.8% to ₹214 crore. The company's Ebitda margin expanded sharply from 5.4% in Q4FY25 to 7.5% in Q4FY26, reflecting improved operational efficiency. However, net profit remained largely flat at ₹72.3 crore during the quarter. The Express Parcel segment demonstrated exceptional growth with revenue growing 46% Y-o-Y to ₹1,830 crore and shipments rising 73% Y-o-Y after the integration of Ecom Express. According to Citi, express parcel volumes rose to 306 million during the quarter, up 4% sequentially and 9% ahead of estimates.
According to Business Standard, the Part Truck Load (PTL) revenue grew around 20% Y-o-Y to ₹620 crore, with tonnage increasing 20% Y-o-Y. The PTL segment Ebitda margin expanded 240 basis points Q-o-Q and 270 basis points Y-o-Y to 13.5%. The company also achieved a significant milestone by turning free cash flow positive in FY26, one year ahead of its earlier FY27 guidance. Delhivery launched 'Delhivery International', an economy air parcel service currently live in the US, UK, Canada and Australia, with plans to add 10 new destinations by Q2FY27. As reported by Citi, transportation business adjusted EBITDA margins expanded by around 300 basis points to above 6%.
As reported by Business Standard, the company expects volume growth of roughly 15-20% annually across segments over the next few years. Delhivery is targeting steady-state margins of 16-18% across Express Parcel and PTL segments in the next two years. The company expects no material impact of fuel price increases as they have pass-through mechanisms covering more than 90% of contracts. Despite the intraday stock dip, blamed on broad market weakness, brokerage houses mostly maintain a bullish stance. ICICI Securities reiterated its 'Buy' rating with a ₹600 target, citing improved visibility in the core business. JM Financial raised its target to ₹590, expecting continued conviction in the company's long-term path. Motilal Oswal and Emkay Global also issued 'Buy' ratings with targets of ₹580 and ₹525 respectively, citing Delhivery's strong position for future growth, network efficiencies, and benefits from industry consolidation.
According to Bloomberg data, out of 23 analysts tracking the company, 19 maintain a 'buy' rating, three maintain a 'hold', and one maintain a 'sell' rating. The average 12-month consensus price target of ₹559 implies an upside of 23.5%. The stock has risen 41.58% in the last 12 months and 12.52% year-to-date. Total traded volume stood at 3.25 times its 30-day average during the session, with the relative strength index at 35.79. UBS maintained its 'Buy' rating and raised its target price to ₹630, while Citi reiterated a 'Buy' call with a target price of ₹565. Goldman Sachs stayed more cautious with a 'Neutral' rating and a target price of ₹480, flagging pressure on realisations and higher overhead costs.
