Shares of Delhivery surged about 9% on November 2, 2026, after the logistics company reported a net profit of Rs 40.6 crore for the second quarter. Revenue grew 20% year-on-year to Rs 3,066 crore, with EBITDA margins expanding to 6.7%. While brokerages have adjusted their long-term price targets, the company is balancing new growth ventures with core operational efficiency.
Delhivery shares saw a strong jump of approximately 9% in early trade on November 2, 2026, following the company's second-quarter earnings report for the fiscal year 2027. The company successfully turned profitable this quarter, reporting a consolidated net profit of Rs 40.6 crore, a significant shift from the loss reported in the same period a year ago.
Operational Performance and Margins
The company’s revenue from operations reached Rs 3,066 crore, representing a 20% growth compared to the previous year. Operational efficiency also showed improvement, with the company’s EBITDA—a measure of operational profit—reaching Rs 205 crore. This resulted in an EBITDA margin of 6.7%, marking an expansion of about 180 basis points on a quarter-on-quarter basis.
Delhivery’s management has focused on pricing power to combat inflationary pressures, such as rising fuel costs and higher minimum wages. Realization metrics, which measure the average revenue per shipment, grew between 4% and 6% quarter-on-quarter as the company implemented strategic price hikes to offset rising expenses without significantly hurting volume growth.
Brokerage Views and Valuation
Following the results, analyst views have varied. Emkay Global has maintained its 'buy' rating on the stock, though it revised its target price to Rs 500 from the previous Rs 525. Other brokerage firms have also weighed in; Jefferies adjusted its target to Rs 470, while Citi currently maintains a target price of Rs 545. These variations reflect different assessments of the company's long-term margin potential and the impact of its expansion strategy.
Strategic Growth and Potential Risks
Looking ahead, the company is investing in new growth areas, including 'Delhivery Local', international operations, and financial services. To support these efforts, the board recently approved an investment of up to Rs 36 crore in its wholly-owned subsidiary, Delhivery Fintech Distribution Private Limited.
While the core logistics business is performing well, investors should note that these new initiatives are expected to create a short-term drag on overall profitability. Analysts have adjusted some long-term margin expectations downward, considering the time and capital required for these new ventures to become profitable. Moving forward, the key factors for investors to monitor will be the company’s ability to manage these expansion costs while maintaining growth momentum in its core part-truckload and business-to-consumer delivery segments.