ICICI Securities has reiterated its 'Buy' rating on Delhivery with a target price of ₹600 in its latest research report dated August 09, 2026. The brokerage maintains its constructive stance despite the margin-led earnings miss, arguing that inflationary pressures are temporary and should ease from Q2FY27. The implied EV/EBITDA at the target price is 37x one-year forward, reflecting confidence in the company's long-term earnings trajectory. The stock has gained around 18% year-to-date but remains well below its 52-week high of ₹524 touched in July, with its current P/E of 379.58 reflecting thin profitability.
According to latest reports, Delhivery has received mixed reactions from brokerages following its Q1FY27 results declaration on Saturday, August 8, 2026. While Citi has raised the company's price target from ₹565 to ₹570 and maintained a 'buy' rating, expecting margins to rebound, other major brokerages have taken a more cautious stance. Jefferies retained a Buy with a target of ₹540, noting that Q1 EBITDA came in 26% below estimates, hurt by weak express parcel realisations, wage inflation and fuel costs. JPMorgan kept its Overweight rating but cut its target to ₹590 from ₹650, acknowledging the EBITDA miss while expressing confidence that margins have likely bottomed. Morgan Stanley maintained Equal Weight with a ₹500 target, noting good topline performance but a margin shortfall. JM Financial, the most bullish on the street, reiterated Buy with a revised target of ₹600, down from ₹650, trimming EBITDA estimates for FY27 by 14% to account for the Q1 miss but remaining confident in Delhivery's positioning in a consolidating third-party logistics market.
According to latest reports, Delhivery posted consolidated revenue of ₹2,931 crore in Q1FY27, up 27.8% year-on-year and 2.8% sequentially, driven by express parcel shipment volumes surging 55.2% YoY to 322 million and PTL freight tonnage rising 18.4% YoY to 542,000 metric tonne. However, EBITDA stood at ₹142 crore, down 4.5% YoY, with EBITDA margin contracting 164 basis points to 4.9%. Profit after tax declined sharply to ₹32 crore from ₹91 crore a year ago. The brokerage noted that first quarter had a higher-than-expected impact and incomplete passthrough of nationwide fuel price increases and minimum wage hikes, which are estimated to be passed through to customers in the second quarter. Prabhudas Lilladher has cut FY27E EBITDA estimates by 24.3% as they fine-tune margin assumptions for B2C and PTL divisions given sharp inflationary pressure from fuel price rises and minimum wage revisions across four states.
According to ICICI Securities, management upgraded its FY27E express parcel volume growth guidance to 20–30% YoY from the earlier 15–20%, driven by continued market share gains from other 3PL players, increasing outsourcing by e-commerce companies, and customer additions. PTL volume growth guidance was maintained at 18–22% YoY. The volume momentum was driven by customer additions, share gains, and the Ecom Express integration. Express Parcel volumes reached 322 million parcels (+55% YoY), while PTL volumes increased to 542kt (+18% YoY). Service EBITDA margins for Express Parcel stood at 15.6% and PTL margins at 11.2%. The management expects to maintain segment operating profit margins of 16-18% in B2C and a 100-150 basis point improvement in the PTL segment, as operating leverage and fuel pass-through mechanisms kick in. Excluding fuel cost hikes (₹35 crore Q1 impact, pass-through from Q2) and Ecom integration costs, reported operating profit margin would have been about 6.6%.
According to Motilal Oswal, EBITDA margin was impacted by higher labor costs following minimum wage revisions across Haryana, Karnataka, Uttar Pradesh and Punjab, lower labor availability due to elections, and higher fuel costs due to a one-month lag in the fuel cost pass-through mechanism. The brokerage noted that wage inflation had a larger margin impact than fuel as there is no automatic contractual pass-through mechanism. Management indicated that the cost increase is being passed on to customers, which would reflect in Q2. Prabhudas Lilladher has trimmed service EBITDA margin estimates for B2C/PTL division to 16.8%/13.1% respectively in FY27E, believing that passing wage cost inflation via repricing client contracts could take longer than fuel cost pass-through. Nuvama has revised its Ebitda estimates for FY27 and FY8 downwards by 18% and 9%, respectively on Q1 margin hit, higher ESOP charges and higher spends on new services.
According to latest reports, Delhivery shares were trading at ₹473, down 0.22% from the previous close of ₹473.30 by 10:30 am on Monday, following the margin disappointment in Q1FY27 earnings reported on Saturday, August 8, 2026. The stock opened sharply lower at ₹456.40, touching an intraday low of ₹452.50 before recovering to ₹479.85 at the high. Buy orders accounted for nearly 64% of total traded quantity with traded volume standing at 93.21 lakh shares worth ₹436.91 crore by mid-morning. Given the Q1 margin miss, brokerages have cut their operating profit estimates for FY27 by 8-12%, with Motilal Oswal cutting estimates by 8% and Emkay Research cutting by 12%. However, given the strong revenue and profit momentum over the next two years, brokerages have retained their buy ratings despite the margin concerns. The stock has gained around 18% year-to-date but remains well below its 52-week high of ₹524 touched in July, with its current P/E of 379.58 reflecting thin profitability.
