Delhivery shares fall over 5% despite strong Q4 results; Check upside potential

Shares of Delhivery Ltd. declined as much as 5% on Monday, May 18, even after the company reported a strong set of earnings for the March quarter after market hours last week.

Delhivery In Q4

Its profit after tax declined marginally to ₹72.3 crore from ₹72.5 crore last year.

The company's revenue increased by 30% to ₹2,849.9 crore in the fourth quarter to ₹2,191.5 crore in the previous year.

Operating performance from Delhivery for the March quarter was strong, with the company's earnings before interest, tax, depreciation and amortization (EBITDA) increasing by 79.9% to ₹214.1 crore from ₹119 crore in the same quarter last fiscal.

Its margins expanded to 7.5% from 5.4% in the year-ago period.

Buy Or Sell?

Brokerages were largely positive on the stock as well and see up to 32.4% upside from its previous close. While UBS and Citi have "buy" recommendations, Goldman Sachs has a "neutral" rating.

UBS

The brokerage has a "buy" rating on Delhivery and has raised its price target from ₹600 per share to ₹630 apiece.

It said Delhivery's revenue growth from last year was higher than expectations. This was driven by robust growth across core transport segments -- Express and PTL. The company's profitability also beat estimates led by continued margin expansion.

UBS said Delhivery's operational performance reflects strong volume momentum and effective integration of Ecom Express, while profitability was supported by sustained efficiency gains and improved segment-level execution.

The key notable is sequential growth in express volumes despite third quarter being a strong one seasonally, UBS said.

Citi

Citi has a "buy" rating and a price target of ₹565 apiece on Delhivery.

It said the company's express parcel volumes of 306 million were up 4% sequentially and 9% more than Citi's estimates. This shows continuing gains from 3PL consolidation and increased outsourcing at leading horizontal e-commerce platform, Citi said.

Post Delhivery's acquisition of Ecom Express, the former's e-commerce volumes in FY26 increased 40% from last year, while PTL revenues were up 19% and the transportation business' adjusted EBITDA margins expanded 300 basis points to 6%. The guidance is for a 10% increase by FY29.

Looking ahead, Citi expects rangebound capex and working capital requirements to result in improvement in network utilization and free cash flows. It expects adjusted EBITDA and free cash flow margins to be 9% and 2.5% in FY28 compared to 4.4% and less than 1% in FY26, respectively, on revenue growing at a Compounded Annual Growth Rate (CAGR) of 19%.

Goldman Sachs

The brokerage has a "neutral" rating on Delhivery with a price target of ₹480 apiece.

Delhivery's fourth quarter revenues were 6% above its estimates.

It said express parcels volume surged 73% from last year to 306 million but revenues were up only 46%, implying lower realization.

The brokerage said PTL volumes increased by 20% with stable realization. Meanwhile, growth was weak across other business segments, it said.

The adjusted EBITDA came in at ₹151.2 crore, below the brokerage's estimate of 197.4 crore. While service EBITDA was higher, the increase in corporate overheads in the quarter was higher than Goldman Sachs' estimates.

Delhivery turned free cashflow positive much earlier than its guidance of FY27-end with the networking capital cycle at 11 days, Goldman Sachs added.

Of the 23 analysts who have coverage on the stock, 19 have a "buy" rating, three have a "hold" rating and one has a "sell" rating.

Shares of Delhivery are trading 5% lower on Monday at ₹451.8. The stock is up 13% so far in 2026, but has not managed to sustain above its issue price of ₹487.

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