Brokerage firm Motilal Oswal has issued a report on Delhivery, setting a target price of ₹510, which indicates a potential 28% upside from the recent reference price of ₹397. The firm expects growth in express and truck-load delivery segments to drive future profitability. However, investors should track potential integration costs from acquisitions, rising fuel expenses, and increasing competition from e-commerce platforms that are increasingly handling their own logistics.
Motilal Oswal has issued a positive outlook on Delhivery, with the brokerage setting a target price of ₹510 per share. This target, based on a reference price of ₹397, suggests a potential upside of approximately 28% for the logistics company. The report highlights the company's efforts to capitalize on the ongoing consolidation within the Indian logistics sector, where larger, organized players are expected to gain ground at the expense of smaller, unorganized operators.
The brokerage's optimism is anchored in expectations of steady growth across the company's core business areas. In particular, the express segment is projected to see a 14% annual revenue growth rate through fiscal 2028. Additionally, the company's partial truck-load, or PTL, segment is viewed as a significant contributor to future profitability. This division is expected to grow as the company expands its services for small and medium businesses, an area that remains highly fragmented across the country.
Financial projections for the coming years are also ambitious. Analysts estimate that Delhivery could achieve a 15% revenue growth rate and an 82% annual increase in adjusted profit after tax by 2028. These figures assume that the company can successfully manage its infrastructure and keep costs under control. Recent leadership continuity also plays a role in this outlook, as the company’s board has approved the re-appointment of MD and CEO Sahil Barua, effective October 13, 2026, providing stability at the top.
Despite this positive outlook, the road ahead involves clear challenges that investors should monitor. One significant area of risk involves the integration of recent acquisitions, specifically the Ecom Express deal. Costs associated with combining operations and technology can sometimes exceed initial estimates, which may impact short-term financial performance. Furthermore, the company faces external pressures, including volatility in fuel prices, which can quickly erode profit margins.
Competition also remains a critical factor for the logistics industry. Large e-commerce marketplace platforms are increasingly building their own internal logistics networks to reduce reliance on third-party providers. This trend, known as insourcing, poses a competitive threat that could limit volume growth for companies like Delhivery. The success of the company’s expansion strategy will largely depend on its ability to offer value-added services that these internal networks cannot easily replicate. Investors should keep a close watch on quarterly margins and updates regarding infrastructure scaling, as these will be the primary indicators of whether the company is meeting its long-term growth targets.