Delhivery up 5% in 2 days post Q3; analysts see strong growth outlook

Delhivery reported its Q3FY26 numbers on Saturday. In two trading sessions, Delhivery shares gained over 5 per cent post results. At 9:22 AM, Delhivery share price was trading 2.06 per cent higher at ₹445.3 per share. In comparison, BSE Sensex was up 0.23 per cent at 80,908.81. However, at 11:12 AM, the stock pared gains and slipped 0.15 per cent on BSE at ₹435.65 per share. 

 

In the December quarter, the company reported profit after tax (PAT) for Q3 at ₹40 crore, as compared to ₹25 crore a year ago. Its revenue from operations came in at ₹2,805 crore, as compared to ₹2,378 crore a year ago.

 

Brokerages’ view on Delhivery Stock

Motilal Oswal Financial Services | Buy | Target raised to ₹580 from ₹570

Motilal Oswal believes Delhivery is well-positioned for future growth, supported by strong momentum in its core transportation businesses and a clear focus on profitability. With express parcel and part truck load (PTL) segments delivering strong volume growth and healthy service Earnings before interest, tax, depreciation and amortisation (Ebitda) margins, the company expects to sustain 16-18 per cent margins over the next two years.

 

The integration of Ecom Express is set to enhance network efficiency and reduce capital intensity, while new services like Delhivery Direct and Rapid offer long-term growth potential in on-demand and time-sensitive logistics.

 

The brokerage anticipates Delhivery to deliver a compound annual growth rate (CAGR) of 14 per cent/44 per cent/54 per cent in revenue/Ebitda/adjusted PAT over FY25-28.   ALSO READ | Brokerages raise target price on Nestle as Q3 results beat expectations

JM Financial Institutional Securities | Buy | Target: ₹570

JM Financial said Delhivery benefited from certain volumes (and hence margin) being pushed from Q2, nullifying the miss on estimates in Q2 across earnings per share (EPS) and PTL. Service Ebitda margins saw robust improvement as well at 280/250 basis points (bps) in EPS/PTL. 

 

Analysts believe Delhivery is likely to be a key beneficiary of the consolidation in the third party logistics service provider (3PL) industry and the improving demand environment in Indian e-commerce.

 

Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers discretion is advised.