Buy Delhivery; target of Rs 500: Emkay Global Financial

Emkay Global Financial is bullish on Delhivery has recommended buy rating on the stock with a target price of Rs 500 in its research report dated March 07, 2026.

Broker Research

March 09, 2026 / 11:38 IST

Buy

Emkay Global Financial' research report on Delhivery

We expect 19% volume CAGR (16% organically) over FY25-28E in the B2C express segment on the back of 1) favorable industry structure bolstered by the consolidation of Ecom Express fortifying Delhivery’s market leadership, as customers (majorly D2C) are likely to stream toward tech-supported pan-India pincode coverage and cost-efficient quality 3PL operators; 2) reduction/absence of deep discounting, as the industry matures and focusses on profitability vs market share gains, allowing operators with scale (and better unit economics) to benefit (Exhibit 2); and 3) a key customer signaling halting of insourcing for the time being, as it realigns its network to cope with the closure of Ecom Express (one of its imminent logistics partners). With the notable recovery in volume in the B2C segment (9MFY26 organic growth at 20% YoY vs 1% in FY25) and the PTL business going from strength to strength, we expect 14% overall revenue CAGR and EBITDA margin expanding by ~750bps, over FY25-28E. Continued losses at captive logistics units of e-commerce platform companies (Exhibits 4, 5) should warrant higher outsourcing to 3PL operators, in our view. Though further consolidation in the 3PL industry cannot be ruled out (Exhibits 6, 7), our current estimates do not factor in such a scenario.

Outlook

At CMP, the stock trades at 17x FY28E EV/EBITDA. We reiterate BUY on Delhivery with TP of Rs500.

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