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Strong Q4 Results Show Revenue Surge, EBITDA Jump
Delhivery's stock fell 5.8% on Monday to ₹447.8 per share, even as the company announced strong financial results for the March quarter (Q4FY26). The logistics giant reported revenue of ₹2,850 crore, up 30% year-on-year. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) surged 80% to ₹214.2 crore.
Express Parcel Leads Growth, Company Achieves Positive FCF
EBITDA margin widened to 7.5% in Q4FY26 from 5.4% in Q4FY25, reflecting improved operational efficiency. The Express Parcel segment revenue grew 46% year-on-year to ₹1,830 crore, fueled by a 73% jump in shipments after integrating Ecom Express. Part Truck Load (PTL) revenue also grew about 20% year-on-year. Crucially, Delhivery turned free cash flow (FCF) positive in FY26, a year ahead of its guidance.
Future Outlook: Volume Growth Targets and Global Expansion
Delhivery expects annual volume growth of 15-20% across its segments for the next few years. The company aims for steady-state margins of 16-18% for Express Parcel and PTL services within two years. Delhivery is also expanding globally with 'Delhivery International,' an economy air parcel service, and plans to add ten new destinations by Q2FY27.
Analysts Positive on Delhivery Despite Stock Dip
Despite the intraday stock dip, blamed on broad market weakness, brokerage houses mostly maintain a bullish stance. ICICI Securities reiterated its 'Buy' rating with a ₹600 target, citing improved visibility in the core business. JM Financial Institutional Securities raised its target to ₹590, expecting continued conviction in the company's long-term path. Motilal Oswal Financial Services and Emkay Global Financial Services also issued 'Buy' ratings with targets of ₹580 and ₹525 respectively, citing Delhivery's strong position for future growth, network efficiencies, and benefits from industry consolidation.