Buy Blue Dart Express; target of Rs 7200: Motilal Oswal

BUY

Motilal Oswal's research report on Blue Dart Express

Blue Dart Express (BDE) revenue grew 7% YoY to INR14.4b (in line). The company handled 0.34m tons of cargo volumes (+9% YoY) in 1QFY26. Realization dipped ~1% YoY to INR42.4/kg. It carried 94m shipments in 1Q. EBITDA margin stood at 6.9% (vs. our estimate of 10.5%; -120bp YoY). High employee costs and other expenses as a percentage of revenue dragged margins. EBITDA dipped ~9% YoY to INR1b (vs. our estimate of INR1.5b). Weak operating performance led to a 9% YoY decline in APAT to INR469m (our estimates of INR754m). The Board appointed Mr. Sagar Patil as the new CFO.

Outlook

We have lowered our EBITDA estimates for FY26 and FY27 by 14%/3%, respectively. We reiterate our BUY rating with a revised TP of INR7,200 (based on 20x FY27 EV/EBITDA).

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