Shares of Delhivery fell over 6% on Monday following the company's March quarter earnings announcement, according to reports from The Hindu BusinessLine. The stock came under pressure after investors reacted to softer profitability and integration-related costs despite robust growth in express parcel volumes and transportation business. However, recent market developments suggest a potential turnaround, with Motilal Oswal maintaining a buy rating and projecting significant growth prospects. As per latest reports, shares fell nearly 6% to hit an intraday low of ₹447.85 on BSE, ending the trading session 4.2% lower at ₹455.7 per share. The broader market sell-off was triggered by surging crude oil prices, ongoing tensions in West Asia, and rising US bond yields, with BSE Sensex and Nifty 50 falling as much as 1.41% and 1.38% intraday respectively.
Delhivery reported a marginal decline in consolidated net profit to ₹72.4 crore for the March quarter of FY26, compared to ₹72.5 crore in the corresponding quarter last year, as reported by The Hindu BusinessLine. However, total income for the quarter rose 30% year-on-year to ₹2,850 crore from ₹2,191.6 crore in Q4FY25. For the full FY26, consolidated profit after tax rose 8% year-on-year to ₹321 crore, while operating revenue grew 17% to ₹10,486 crore. Total expenses increased 26.9% year-on-year to ₹2,853.1 crore during the quarter, reflecting higher corporate overheads and integration costs. According to Motilal Oswal, the company is positioned for strong growth with projected 33% EBITDA CAGR over FY26-28, supporting a 22% upside potential for the stock.
According to reports from The Hindu BusinessLine, Q4FY26 revenue of ₹2,850 crore was 30% year-on-year and ahead of expectations, driven by robust growth across core transport businesses including express and part truckload (PTL) segments. Express parcel volumes surged 73% year-on-year to 306 million parcels, taking annual volumes above 1 billion in FY26. The company delivered over 1 billion express shipments during FY26, with annual shipment volumes rising 40% year-on-year to 1,054 million. Revenue from the transport business remained the key growth driver, rising 38% year-on-year to ₹2,453 crore. At operating level, EBITDA jumped 94% year-on-year to ₹231 crore, while EBITDA margin expanded to 8% from 5.4%.
As reported by The Hindu BusinessLine, UBS maintained a buy rating with a raised target price of ₹630, highlighting that profitability beat estimates due to continued margin expansion and effective integration of Ecom Express. Citi maintained a buy rating with a target price of ₹565, expecting adjusted EBITDA and free cash flow margins to improve to 8% and 2.5% respectively by FY28, compared with 4.4% and below 1% in FY26. Goldman Sachs maintained a neutral rating with a target price of ₹480, noting that adjusted EBITDA came in at ₹1,512 million, below its estimate of ₹1,974 million, due to higher corporate overheads and ₹220 million of integration costs related to the Ecom Express acquisition. Nuvama also maintained a buy call and raised its target price to ₹580, saying Delhivery remains well-positioned to gain market share in part truck load (PTL) and express logistics segments. Motilal Oswal maintains a buy rating with a 22% upside potential, citing the company's strong growth trajectory and operational improvements.
According to The Hindu BusinessLine, domestic brokerage Elara Capital reiterated a buy rating with a target price of ₹620, calling Delhivery one of its top picks in the sector. The company continued investing in AI-led logistics infrastructure during the quarter and announced key board-level changes, including the appointment of Tata Communications CFO Kabir Ahmed Shakir as an independent director. After the acquisition of Ecom Express, Delhivery's e-commerce volumes in FY26 rose 40% year-on-year, while PTL revenues increased 19%. The company turned free cash flow positive earlier than its FY27-end guidance, aided by a net working capital cycle of 11 days. Motilal Oswal projects the company will achieve 33% EBITDA CAGR over FY26-28, with the stock positioned for significant upside potential despite recent market volatility.
