Shares of Delhivery fell over 6 per cent on Monday after the company reported a marginal decline in quarterly profit, even as revenue growth remained strong and brokerages maintained a largely positive stance on the logistics firm’s operational momentum.

The stock came under pressure after the company’s March quarter earnings announcement, with investors reacting to softer profitability and integration-related costs despite robust growth in express parcel volumes and transportation business.

Delhivery on Saturday reported a marginal decline in consolidated net profit to ₹72.39 crore for the March quarter of FY26, compared to ₹72.55 crore in the corresponding quarter last year.

Total income for the quarter rose 26.31 per cent y-o-y to ₹2,909 crore from ₹2,303 crore in Q4FY25.

For the full FY26, consolidated profit after tax declined 6.81 per cent y-o-y to ₹152.54 crore from ₹162.11 crore in the previous financial year.

UBS maintained a buy rating on the stock and raised the target price to ₹630. The brokerage said Delhivery reported a strong fourth quarter with revenue of ₹28.5 billion, up 30 per cent y-o-y and ahead of expectations, driven by robust growth across core transport businesses including express and part truckload (PTL) segments.

UBS added that profitability beat estimates due to continued margin expansion, supported by strong volume momentum, effective integration of Ecom Express and sustained efficiency gains. It also highlighted sequential growth in express parcel volumes despite the December quarter usually being seasonally strong.

Goldman Sachs maintained a neutral rating with a target price of ₹480. The brokerage said Q4FY26 revenue of ₹28.5 billion was 6 per cent above its estimates, while express parcel volumes surged 73 per cent y-o-y to 306 million parcels, taking annual volumes above 1 billion in FY26.

However, Goldman Sachs noted that revenues grew only 46 per cent, implying lower realisations. PTL volumes rose 20 per cent y-o-y with stable realisations, while growth across other business segments remained weak.

The brokerage said adjusted EBITDA came in at ₹1,512 million, below its estimate of ₹1,974 million, due to higher corporate overheads and ₹220 million of integration costs related to Ecom Express acquisition, which it had not factored in. It also noted that Delhivery turned free cash flow positive earlier than its FY27-end guidance, aided by a net working capital cycle of 11 days.

Citi maintained a buy rating with a target price of ₹565. The brokerage said express parcel volumes of 306 million parcels increased 4 per cent q-o-q and were 9 per cent above its estimates, reflecting continued gains from third-party logistics consolidation and increased outsourcing by a leading horizontal e-commerce platform.

Citi added that after the acquisition of Ecom Express, Delhivery’s e-commerce volumes in FY26 rose 40 per cent y-o-y, while PTL revenues increased 19 per cent. Transportation business adjusted EBITDA margins expanded by around 300 basis points to above 6 per cent.

The brokerage expects lower capex and working capital requirements to improve network utilisation and free cash flows over the coming years. It estimates adjusted EBITDA and free cash flow margins to improve to 8 per cent and 2.5 per cent, respectively, by FY28, compared with 4.4 per cent and below 1 per cent in FY26.

Domestic brokerage Elara Capital reiterated a buy rating with a target price of ₹620, calling Delhivery one of its top picks in the sector. The brokerage said operations remained resilient despite geopolitical disruptions, with over 90 per cent of contracts containing fuel price escalation pass-through clauses. Elara added that it continues to value the company positively on the back of strong execution across express parcel, PTL and supply chain management businesses, while introducing FY29 estimates.

Published on May 18, 2026