Delhivery Research Report

Key Highlights

Delhivery, a leading integrated logistics platform, is poised to benefit from the evolving trends in the Express and PTL segments. The company's management expects industry consolidation to continue in the Express logistics segment, with cash-burning players likely to exit or rationalize operations, leading to volume redistribution toward stronger, well-capitalized operators.

In the PTL market, customers are increasingly shifting toward faster, more reliable express PTL offerings from organized players, moving away from traditional economy models. This structural redesign is driven by rising ecommerce penetration and increasing customer expectations for faster, more reliable deliveries. Delhivery has positioned itself as a leading integrated logistics platform by embedding technology across its operations, optimizing network utilization, and supporting higher service margins.

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Outlook

We expect Delhivery to report a strong growth trajectory, with a sales CAGR of 14% and EBITDA/APAT CAGR of 44% and 54% over FY25-28, respectively. Our BUY rating is supported by a DCF-based target price of INR580.