Prabhudas Lilladher has issued a buy rating on Delhivery with a target price of ₹534 in its research report dated May 17, 2026. According to the brokerage's analysis, the stock is currently trading at 47x/31x their FY27E/FY28E pre-IND AS EBITDA estimates. The recommendation is based on the company's strong operational performance and growth prospects in key business segments.
Delhivery reported better than expected operating performance with EBITDA margin of 7.5% in the latest quarter, surpassing analyst estimates of 6.7%. As reported by Prabhudas Lilladher, the company achieved free cash flow to FCF positive status in FY26 through improved scale advantages and working capital cycle optimization to 11 days. The company also reduced capital expenditure intensity to 4.7% of sales during the period.
The B2C segment has registered healthy performance over the last two quarters, benefiting from curbs on insourcing by large marketplace platforms. According to Prabhudas Lilladher's analysis, the PTL division service EBITDA margin improved to 13.5% in Q4FY26 due to rising utilization rates. The brokerage expects sales CAGR of 17% over the next two years, supported by growth levers in both B2C and PTL divisions.
Prabhudas Lilladher projects EBITDA margins of 8.9% for FY27E and 10.2% for FY28E. The brokerage has cut adjusted EBITDA estimates by 5% due to planned investments of ₹1,300-1,600 million in new businesses including on-demand intra-city logistics, international air-economy, and financial services for FY27E. Despite these investments, the company's strong operational metrics and growth prospects support the positive outlook.
