Latest news with #SrivatsanRajan
Entrepreneur
7 days ago
- Business
- Entrepreneur
Srivatsan Rajan to Step Down from Delhivery Board After Nearly a Decade
Rajan played a pivotal role in guiding Delhivery through a transformative decade, during which the logistics technology firm grew from a mid-sized player to a publicly listed integrated supply chain and logistics provider. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Delhivery has announced that Srivatsan Rajan, former India Chairman of Bain and Company, will step down from its board as an independent director on September 30, 2025, concluding an association that began in 2015. The company confirmed his resignation on Friday. Rajan played a pivotal role in guiding Delhivery through a transformative decade, during which the logistics technology firm grew from a mid-sized player to a publicly listed integrated supply chain and logistics provider. His tenure included key milestones such as the company's 2022 initial public offering and its expansion into freight, cross-border trade, and business-to-business services. In a note to the board, Rajan reflected on his journey with the company. "It has been a privilege to serve on the Board for the past ten years. I am incredibly proud of the growth and achievements we've accomplished together during this period. I've witnessed firsthand the dedication of the management team and the unwavering commitment of our employees, which has been instrumental in shaping Delhivery into the industry leader it is today," he said. Clarifying the reasons for his departure, Rajan stated, "I would like to now be able to contribute to another company's journey," adding that his exit was not driven by any material concerns. The company has not yet announced a successor for the role. Meanwhile, Delhivery reported its financial results for the first quarter of FY26. Revenue from services stood at INR 2,294 crore, marking a 6 percent year-on-year rise from INR 2,172 crore in the same period last year. Earnings before interest, taxes, depreciation, and amortisation reached INR 149 crore with a margin of 6.5 percent, a 53 percent increase from INR 97 crore and a 4.5 percent margin a year earlier. Profit after tax rose 67 percent to INR 91 crore, with margins improving from 2.4 percent to 3.8 percent. In other board developments, the company appointed Padmini Srinivasan and Yashish Dahiya as additional directors for a five-year term effective August 1, 2025, subject to shareholder approval. Srinivasan is a senior faculty member at IIM Bangalore, while Dahiya serves as Chairman and CEO of PB Fintech, the parent company of
India Today
7 days ago
- Business
- India Today
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
Mint
7 days ago
- Business
- Mint
Delhivery share price rises 5% to 52-week high on strong Q1 results; should you buy now?
Shares of logistics major Delhivery surged 5 percent on Monday, August 4, to hit a 52-week high of ₹ 451.50, following the announcement of its June quarter results (Q1FY26). The upbeat performance—driven by improved margins, volume expansion, and operational efficiency—sent investor sentiment soaring. Delhivery reported a 68.5 percent year-on-year rise in net profit to ₹ 91 crore, aided by stable revenues and tighter operations. Revenues grew 6 percent YoY to ₹ 2,294 crore, driven by solid volume growth across business verticals. Operating profit (EBITDA) for the quarter rose by 53 percent to ₹ 149 crore, while EBITDA margin expanded to 6.5 percent from 4.5 percent last year. The company's Express Parcel business, a key growth driver, saw shipments rise 14 percent YoY to 208 million, contributing to a 10 percent revenue jump to ₹ 1,403 crore. Its part truckload (PTL) business also performed well, with tonnage and revenue increasing 15 percent and 17 percent, respectively. Service EBITDA margin for PTL improved sharply to 10.7 percent, up from 3.2 percent in Q1FY25. CEO Sahil Barua, during the post-earnings call, said that the integration of Ecom Express, acquired for ₹ 300 crore, will begin reflecting from the July–September quarter and will be spread over six months. The deal is expected to boost Delhivery's 3PL market share by around 25 percent, as Ecom Express handled almost half of Delhivery's volume. In a separate development, the company announced that Srivatsan Rajan, the longest-serving independent director, will step down by September-end. Yashish Dahiya, founder of PB Fintech, and Padmini Srinivasan will join the board as independent directors. Motilal Oswal Financial Services (MOFS) maintained its 'Buy' rating and raised the target price to ₹ 500 from ₹ 480. The brokerage highlighted Delhivery's scalable growth, improved margins, and strong network synergies. MOFS believes the company's core transport businesses will continue to drive profit-accretive growth, bolstered by asset optimisation and strategic acquisitions. It projects margin sustainability of 16–18 percent over the next two years, and forecasts a CAGR of 14 percent in revenue, 38 percent in EBITDA, and 53 percent in adjusted PAT for FY25–28. Meanwhile, Kotak Institutional Equities also echoed a bullish stance with a 'Buy' rating and ₹ 500 target. The brokerage noted a 77 percent sequential rise in profit before tax, despite challenges like adverse weather, operational disruptions from Operation Sindoor, and wage hikes. Kotak credited Delhivery's business model efficiency, highlighting that Express Parcel volume additions were absorbed seamlessly within existing networks and without increasing overheads. It also pointed to the continuing ramp-up in the PTL (part truckload) segment as a key driver, reinforcing Delhivery's growing ability to handle volume variability. The firm sees further upside as the company reorients its portfolio and scales up investments in supply chain services and new business lines. In contrast, Jefferies maintained an 'Underperform' rating with a price target of ₹ 350. The firm flagged that Q1 EBITDA missed estimates by 35 percent, primarily due to a timing mismatch in volume realisation from the Ecom Express acquisition. Adjusting for the 30 million Ecom volumes, Jefferies said Express Parcel growth was roughly in line with its projections. However, it noted that logistics costs form a significant part of total sales for e-commerce marketplaces, making operational efficiency critical. This, the brokerage said, remains a structural overhang for third-party logistics players like Delhivery. The stock jumped as much as 5 percent to its day's high of ₹ 451.50, also its 52-week high. It has now risen over 90 percent from its 52-week low of ₹ 236.80, hit in March 2025. Delhivery shares have gained 23% year-to-date and added just 3.3% in the last one year. It rose 11 percent in July, extending gains for 5th straight month. It added 7 percent in June, 17 percent in May, 20 percent in April and 2 percent in March. Before that, it fell 5.6 percent in February and 16 percent in January. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
