Shares jumped 7% after strong Q1 results, with revenue and net profit rising 6% and 69% YoY, respectively. Despite robust margins and operational gains, brokerage concerns over cost control and Ecom Express integration pose near-term challenges, tempering optimism.
The shares of the largest integrated logistics services provider gained up to 7 percent in today’s trading session after the company’s net profit zoomed by 69 percent and 25 percent in Q1FY26.
With a market capitalization of Rs 34,063.26 crore, the shares of Delhivery Ltd were trading at Rs 456.25 per share, increasing around 6.14 percent as compared to the previous closing price of Rs 429.85 apiece.
Q1FY26 highlights
The shares of Delhivery Ltd have seen positive movement after reporting positive results in Q1FY26. Revenue increased by 5 percent on a quarter-on-quarter basis from Rs. 2,192 crore in Q4FY25 to Rs. 2,294 crore in Q1FY26. Further, revenue increased by 6 percent year on year, from Rs 2,172 crore in Q1FY25 to Rs 2,294 crore in Q1FY26.
The company’s net profit increased by 25 percent on a quarter-on-quarter basis, from Rs. 73 crore in Q4FY25 to Rs. 91 crore in Q1FY26. Further, net profit increased significantly by 69 percent year on year from Rs 54 crore in Q1FY25 to Rs 91 crore in Q1FY26.
In Q1FY26, revenue rose to ₹2,290 crore with total service EBITDA at ₹298 crore, reflecting a healthy 13% margin. Express Parcel led with ₹228 crore EBITDA and a 16.3% margin. Part Truckload delivered ₹54 crore EBITDA, while Supply Chain Services posted ₹15 crore with a 7.2% margin.
Additionally, EBITDA margin improved to 6.5% with EBITDA rising to ₹149 crore, compared to 4.5% in Q1FY25 and 5.4% in Q4FY25. PAT margin also strengthened to 3.8%, reflecting better cost efficiency and improved profitability momentum.
Also read: Telecom stock in focus after receiving ₹166 Cr order from BSNL
However, Jefferies, one of the well-known brokerages in India, gave an ‘underperform’ rating on this logistics stock with a target price of Rs 350 apiece, indicating a potential downside of 18 percent from Monday’s price of Rs 429.85 per share.
Delhivery’s Q1 EBITDA came 35% below estimates, impacted by timing mismatches in Ecom Express volume realisations. Adjusted for 30 million Ecom volumes, Express Parcel growth aligns with expectations. With logistics costs forming 29–78% of marketplace sales, effective cost control remains critical, posing challenges for third-party logistics players, Jefferies noted.
The Ecom Express acquisition, approved on June 17 and completed on July 18, 2025, was finalized for ₹1,369 crore. With volume manifestation ceased, the company is executing a network rationalization plan, retaining seven facilities, and initiating exits from non-express businesses to enhance efficiency and focus on core operations.
Delhivery Limited is a fully integrated logistics provider. It offers services, including express parcel, partial-truckload freight, truckload freight, Delhivery cross-border, and supply chain services. It’s express parcel delivery network services over 18,500 pin codes in India.
Written by Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
