Delhivery Delivers! Q1 Profit Soars, Stock Rallies: Should You Invest?

Delhivery's Q1 net profit surged 68.5% year-on-year to Rs 91 crore, driven by cost controls and efficiency gains. Revenue grew modestly by 5.6% to Rs 2,294 crore, but express parcel volumes jumped 14%.

Logistics company Delhivery saw its shares climb nearly 5% intraday on Monday, touching Rs 451.50 on the BSE, after reporting an impressive 68.5% year-on-year jump in net profit for the April–June quarter. The company’s bottom line stood at Rs 91 crore, boosted by tighter cost controls and improved operating efficiency. While revenue growth remained modest at 5.6%, reaching Rs 2,294 crore, Delhivery’s core express parcel business showed strong momentum with a 14% increase in shipment volumes, clocking 208 million deliveries during the quarter.

Ecom Express deal progressing well

CEO Sahil Barua, speaking on the post-earnings call, said the ongoing Rs 300-crore acquisition of Ecom Express is progressing smoothly, with integration costs expected to be lower than previously anticipated. He noted a positive surprise—Ecom Express is retaining 50–60% of its volumes post-deal, well above the earlier estimate of 30%. The financial impact of the deal is expected to show fully in the July–September quarter.

Leadership changes ahead

The company also announced board-level changes. Srivatsan Rajan, Delhivery’s longest-serving independent director, will step down by the end of September. In his place, PB Fintech founder Yashish Dahiya and academic Padmini Srinivasan will join the board as independent directors.

Brokerages stay bullish

Analysts remain upbeat on the company. JM Financial’s Sachin Dixit called the Q1 performance “decent,” noting that despite revenue falling slightly below expectations, improved cost efficiencies led to stronger margins. Adjusted EBITDA stood at Rs 754 crore with a margin of 3.3%, up 80 basis points from the previous quarter.

Dixit also pointed out that express parcel volumes saw double-digit growth both annually (13.7%) and sequentially (17.5%), helped by market consolidation and a pause in Meesho’s insourcing. JM Financial retained a ‘BUY’ rating and raised its June 2026 target price to Rs 500, citing stronger margin visibility, lower capital expenditure, and a more favourable market environment.

Motilal Oswal also reiterated its ‘BUY’ rating, forecasting robust long-term growth: a 14% CAGR in revenue, 38% in EBITDA, and 53% in adjusted PAT between FY25 and FY28. The brokerage expects margins to stabilise in the 16–18% range.

Investor interest returns

Delhivery’s stock has rallied 23% so far this year and is up 41% in the past three months, though it still trades 32% below its three-year high. With a market capitalisation of Rs 32,092 crore and visible signs of recovery in its core business, the company is starting to regain investor confidence.