04-08-2025
Dehlivery shares rally up to 5% after Q1 results. Should you buy?
Dehlivery shares jumped nearly 5% intraday on Monday, touching Rs 451.50 on the BSE, after the logistics major posted a sharp improvement in quarterly profit. The company reported a 68.5% year-on-year rise in net profit to Rs 91 crore for the April–June quarter, driven by tighter cost controls and improved operating rose a modest 5.6% to Rs 2,294 crore, but the express parcel segment—the company's backbone—showed resilience with a 14% rise in shipment volumes, reaching 208 million Sahil Barua, in a post-results call, said the ongoing Rs 300-crore acquisition of Ecom Express is on track, with integration costs expected to be lower than previously estimated. Notably, he said Ecom Express is now retaining 50–60% of its volumes post-deal—well above the ~30% originally guided. The full financial impact of the acquisition will reflect in the July–September quarter.
The company also announced board changes: Srivatsan Rajan, its longest-serving independent director, will step down at the end of September. PB Fintech founder Yashish Dahiya and academic Padmini Srinivasan will join as independent Financial's Sachin Dixit termed the performance 'decent,' highlighting that despite revenue falling 4.9% short of estimates, cost efficiencies led to a margin beat. Adjusted EBITDA rose to Rs 754 crore with a margin of 3.3%, an 80-basis point improvement over the previous noted that express parcel shipment volumes grew 13.7% YoY and 17.5% QoQ—early signs that market consolidation and a pause in Meesho's insourcing are benefiting Delhivery. He reiterated a 'BUY' rating with a raised June 2026 target price of Rs 500, citing improved margin visibility, reduced capex intensity, and a more favourable industry Oswal Financial Services also retained its 'Buy' rating, citing scalable growth with margin expansion and synergies from recent acquisitions. It forecasts a 14% CAGR in revenue, 38% in EBITDA, and 53% in adjusted PAT from FY25–28, with margins stabilising between 16–18%.Delhivery shares have gained 23% year-to-date and 41% over the past three months, but remain 32% below their three-year high. At a market cap of Rs 32,092 crore, the stock is drawing renewed investor interest amid signs of recovery in core operations.(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)- Ends
