Delhivery Shares Jump to 52-Week High After 68% Profit Surge in Q1: What’s
Powering the Rally?
DelhiveryLtd, India’s logistics and supply chain leader, made headlines this
week after its stock soared over 6%,
touching a new 52-week high. The
rally came after the company announced a strong set of Q1 earnings for FY26.
Net profit surged nearly 68% year-on-year,
driven by operational efficiency, improved cost management, and strategic focus
on its most profitable services.
While the revenue grew modestly at 6% year-on-year, the real story was margin improvement and smart business execution both of which signaled a shift toward long-term sustainability and growth. Investors, analysts, and retail traders all reacted positively, seeing the latest numbers as a sign of Delhivery's ongoing evolution into a more mature, high-margin logistics powerhouse.
Q1
Earnings Snapshot
Delhivery reported solid Q1 results, with impressive profit growth and expanding margins:
| 📊 Metric | Q1 FY26 | Q1 FY25 | YoY Growth |
|---|---|---|---|
| Net Profit (PAT) | ₹91 crore | ₹54 crore | +67.7% |
| Revenue | ₹2,294 crore | ₹2,160 crore | +6.2% |
| Core EBITDA | ₹149 crore | ₹97 crore | +53.6% |
| EBITDA Margin | 6.5% | 4.5% | +200 bps |
| Earnings Per Share (EPS) | ₹1.24 | ₹0.74 | +67% |
This kind of improvement, especially in profitability and margins, is considered highly positive for a business like logistics which typically runs on thin margins due to intense competition and rising costs.
Segment-Wise Performance
Delhivery performance varied across its
service verticals. Here's how each one performed:
1. Express
Parcel (Core Business)
·
Parcel volumes rose 14% year-on-year to 208 million shipments
·
This segment was a major contributor to overall
growth
·
Operating efficiency helped reduce cost per
shipment
2. Part-Truck
Load (PTL) Freight
·
Revenue from PTL services grew 17% YoY
·
Margins expanded sharply from 3.2% to 10.7%
·
Strong demand from SMEs and D2C brands
3. Truckload
(FTL) Services
·
Revenue declined by 5%
·
Due to lower seasonal demand and route
optimization efforts
4. Supply
Chain Solutions
·
Revenue dropped 21%
·
Performance was impacted by client exits and
delayed contracts
5. Cross-Border
Business
·
Declined by 44%
·
Mainly due to global trade volatility and
currency pressures
While some verticals declined, the strong growth and margin improvement in the Express and PTL businesses outweighed the negatives.
Operational Leverage at Work
One of the biggest takeaways from Delhivery’s
Q1 performance was the benefit of
operating leverage. As the company handled more volume through the
same infrastructure, its unit costs
dropped, and profits improved without a proportional increase in
expenses.
This also helped Delhivery achieve a 6.5% EBITDA margin, a significant jump compared to last year. For a logistics company operating at scale, this margin improvement is a crucial sign of efficient execution.
Strategic Initiatives Fueling Growth
Delhivery isn’t just resting on its core
business. It’s actively expanding into new, high-potential areas.
Delhivery Rapid
A fast-delivery service promising sub-2-hour
deliveries in metro cities. As of Q1:
·
20 dark
stores operational
·
Monthly revenue run-rate of ₹1.2 crore
·
Targets expansion to 35–40 locations by year-end
·
Focused on fast-moving consumer goods, auto
parts, and beauty products
Delhivery Direct
An intra-city delivery service aimed at
consumers and small businesses. Currently available in:
·
NCR
·
Ahmedabad
·
Bengaluru
Both services are in the investment phase but have shown early signs of traction. These models have high margin potential and can strengthen Delhivery’s leadership in hyperlocal logistics.
Stock Market Reaction
Delhivery’s stock price reacted positively:
·
Rose over 6%
intraday on results day
·
Touched a 52-week
high
·
Logged 30.9%
YTD gains in 2025
Retail investors on forums and platforms described the sentiment as “bullish,” especially in anticipation of strong festive demand in Q2 and Q3.
Analyst View: Why the Market Is Optimistic
Several market experts and analysts believe
Delhivery is entering a new phase of profitability and consistency.
Reasons for Bullish Outlook:
·
Stable
cost structure
·
Sharp
improvement in margins
·
Volume-linked
pricing model
·
Better
integration of acquisitions
·
Strong
festive demand expected in upcoming quarters
Brokerages have started raising their target prices. One major firm increased its target to ₹600, implying a 33% upside from current levels.
Ecom Express Integration Paying Off
Delhivery’s acquisition of Ecom Express
earlier this year is starting to deliver value.
Key Benefits:
·
Over 50%
of Ecom Express volumes now integrated into Delhivery’s network
·
Shifted customer contracts to volume-linked pricing
·
Eliminated unprofitable contracts
·
Improved unit
economics and profitability
This move reduced price wars and helped Delhivery push its express business toward healthier margins.
What Lies Ahead?
Growth Tailwinds:
·
India’s e-commerce market is projected to grow
at 15–17% annually
·
Tier-2 and Tier-3 city penetration remains
strong
·
Growing D2C and SME demand boosts PTL and
express services
Upcoming Catalysts:
·
Festive
season volumes beginning Q2
·
Full-scale rollout of Rapid and Direct services
·
Continued integration of Ecom Express
· Targeted capacity investments in high-margin areas
Risk
Factors
Despite the optimism, Delhivery faces a few
potential risks:
·
Volatility in underperforming segments (FTL,
cross-border)
·
Higher competition in metro logistics
·
Rising fuel and labor costs
·
Execution challenges in scaling new services
Investors should watch how Delhivery manages its costs and maintains its margin momentum in coming quarters.
Summary: Why Delhivery Is a Stock to Watch
Delhivery’s Q1 performance marks a strong turnaround story. What was once
seen as a cash-burning logistics startup is now evolving into a profitable, efficient, and growth-driven company.
Here’s why the stock is gaining investor
confidence:
68% YoY profit growth
Strong margins and operating leverage
Core segments (Express and PTL) performing well
New initiatives like Rapid and Direct showing traction
Positive analyst and market sentiment
Strategic acquisitions driving long-term efficiency
As India’s logistics needs grow and delivery speeds become a competitive advantage, Delhivery is well-positioned to ride the next wave of growth.
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