Accumulate Delhivery; target of Rs 431: Geojit Financial Services

Geojit Financial Services recommended accumulate rating on Delhivery with a target price of Rs 431 in its research report dated June 06, 2025.

Broker Research

June 06, 2025 / 13:27 IST

Accumulate

26 Aug, 2025 12:21

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Geojit Financial Services research report on Delhivery

Delhivery Ltd. is India’s largest fully integrated logistics provider. With a robust network spanning 18,700+ pin codes, 24 automated sort centres, and 57,000+ team members, it is revolutionising commerce through cutting-edge tech, world-class infrastructure and seamless logistics, delivering over 2 billion orders. Delhivery’s consolidated revenue saw a 5.6% YoY increase, reaching Rs. 2,192cr in Q4FY25, owing to increasing the Part Truckload (PTL) volumes. Indian operations contributed Rs. 2,191cr (+5.6% YoY). International revenue, which accounts for a tiny fraction, saw a sharp 184.1% YoY jump to Rs. 3cr. EBITDA witnessed a substantial 159.5% YoY growth to Rs. 119cr, with a notable margin expansion of 320bps YoY to 5.4%, driven by higher volumes, enhanced operational efficiency across the networks and better fleet utilisation. As a result, the reported profit after tax (PAT) rose to Rs. 73cr, benefitting from lower tax expenses (-62.6% YoY) and a higher share of profits from its associate companies (+169.9% YoY). Delhivery's strategic initiatives drove steady performance in its core transportation businesses in Q4FY25, positioning the company for sustained momentum in FY26.

Outlook

Its rapid commerce service is also gaining traction from business-to-business customers seeking faster supply chain solutions. Therefore, we remain optimistic and assign an Accumulate rating on the stock, with a target price of Rs. 431, based on 2.7x FY27E P/S.

For all recommendations report, click here