Motilal Oswal Maintains Buy Rating for Delhivery with Target Price of Rs 580

Delhivery Posts Strong 4QFY26 Performance, Beats Estimates

Delhivery, a leading logistics company, reported a significant increase in revenue for the fourth quarter of fiscal year 2026 (4QFY26). The company's revenue rose 30% year-over-year (YoY) to INR 28.5 billion, meeting market expectations. This impressive growth was driven by strong consumption-led demand, the integration of Ecom Express, and market share gains resulting from industry consolidation.

Delhivery's operating performance was also noteworthy, with reported Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) rising 80% YoY to approximately INR 2.1 billion. The company's EBITDA margins stood at 7.5%, a substantial increase of 210 basis points (bp) YoY and 10 bp QoQ. Although the company's Adjusted Profit After Tax (APAT) came in at INR 708 million, which was 2.5% lower YoY than expected, the overall performance was encouraging.

The company's core transportation segment, comprising Express Parcel and Part Truckload (PTL) segments, witnessed robust volume growth. The Express Parcel segment recorded a 73% YoY increase, while the PTL segment grew by 20% YoY. The service EBITDA margins for the Express Parcel and PTL segments stood at 18.8% and 13.4%, respectively.

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Delhivery's strong 4QFY26 performance is expected to sustain momentum in the Express business and PTL going forward. The company's new services, such as Delhivery Direct and Rapid, are also scaling up well.

Revenue and EBITDA Growth Projections

Based on these projections, we maintain our BUY rating for Delhivery with a Discounted Cash Flow (DCF)-based target price of INR 580.

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