Target ₹540: Analysts upbeat on Delhivery with 16% upside; top details here

Logistics company Delhivery is set for strong growth this festive season, with analysts projecting a target price of ₹540, reflecting a potential upside of 16 per cent. 

 

“Delhivery is strategically positioned to benefit from heightened festive season volumes and GST-led demand recovery,” Alok Deora and Shivam Agarwal, research analysts at Motilal Oswal said, highlighting the company’s market leadership in express logistics.

 

On the bourses around 9:20 am, Delhivery shares were trading 0.33 per cent higher at ₹468.65 per share. In comparison, BSE Sensex was trading 0.12 per cent higher at 81,867.73 levels.

 

According to the Reserve Bank of India (RBI), total electronic payments surged to ₹11.3 trillion on September 22, 2025, nearly ten times higher than the ₹1.18 trillion recorded the previous day. 

 

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Analysts at Motilal Oswal noted that this sharp spike was driven by the recent GST rate cut and a boost in festive season consumption, which has led to increased transaction activity across retail and e-commerce channels. “The GST rate cut has revived consumer demand, particularly in automobiles and two-wheelers, creating higher logistical requirements across the sector,” the analysts added.  ALSO READ | Prestige Estates share zooms 7% on robust Q2 sales; Analysts retain 'Buy' 

Delhivery, with a pan-India presence across over 18,800 pin codes and a modern network of mega-gateways, automated sortation centers, and high-capacity trucking fleet, is well-positioned to capture these opportunities. The company processed more than 104.4 million shipments, including Express and Part Truck Load (PTL) segments, in September alone. 

 

Analysts at Motilal Oswal said, “With over 20 per cent market share in express parcels, Delhivery is the largest 3PL player in India, giving it a disproportionate advantage amid festive season demand.”

 

The company’s strategic acquisition of Ecom Express in July 2025 for ₹14 billion further strengthens its position. “The Ecom Express acquisition expands Delhivery’s rural network and complements its existing infrastructure, enhancing network density and delivering cost synergies,” analysts at Motilal Oswal said. The integration also deepens Delhivery’s moat against competitors such as Blue Dart Express and XpressBees, particularly in Tier 2–4 cities that account for a growing share of e-commerce volumes.

 

High-growth segments such as PTL and Supply Chain Services (SCS) remain underpenetrated, offering additional upside. Analysts noted, “PTL revenues are expected to grow at an 18 per cent CAGR over FY25-28, driven by SME and retail expansion, yield improvement, and adoption of value-added services.” SCS is also scaling profitably, supported by GST-led network redesign and increasing demand for integrated multi-location solutions, with projected revenue CAGR of 22 per cent over FY25–28.  ALSO READ | Will Apollo, Max, Metropolis outshine peers in Q2? Here's what analysts say 

Margin expansion remains a key growth lever, analysts highlighted. Delhivery’s Ebitda margin is projected to reach 7.3 per cent by FY28 from 4.2 per cent in FY25, aided by operating leverage, technology integration, and improved asset utilisation. Analysts said, PTL Ebitda margins are expected to rise to 16-18 per cent in the next 2–3 years, while express parcel services may expand to 17-18 per cent by March 2026. With a strong balance sheet and minimal debt, analysts believe the company has headroom for strategic capex and acquisitions.

 

Going forward, Delhivery’s growth is expected to remain broad-based. Analysts at Motilal Oswal said, “With Express Parcel and PTL segments delivering consistent volume growth and healthy margins, Delhivery is well-positioned to sustain profitability and capture market share.” New offerings such as Delhivery Direct and Rapid provide further opportunities in on-demand and time-sensitive logistics.

 

Therefore, Motilal Oswal analysts maintained a ‘Buy’ rating on the Delhivery stock with a target price of ₹540, based on DCF valuation, citing a projected CAGR of 14 per cent/38 per cent/53 per cent in sales/Ebitda/APAT over FY25-28.