Delhivery Shares Jump Nearly 10% After Q2 Swing To ₹41 Cr Profit

Shares of Delhivery jumped 9.7% to an intraday high of ₹423.35 on the BSE after the logistics company reported a consolidated net profit of ₹40.6 Cr in Q2 FY27, against a net loss of ₹50.5 Cr a year earlier.

The stock later pared some gains to trade 7.6% higher at ₹415.40 apiece at 12:12 IST. The company’s market capitalisation stood at ₹31,135.2 Cr (about $3.3 Bn) at the time.

Brokerage firm Equirus Securities upgraded Delhivery to ‘Long’ from ‘Reduce’, with a target price of ₹505. This implies an upside of 30.8% from the stock’s previous closing price of ₹386.

Equirus expects Delhivery’s revenue, EBITDA, and express parcel volumes to grow at compound annual growth rates of 21%, 39%, and 22%, respectively, between FY26 and FY29, driven by market share gains, improving part truckload (PTL) margins, and operating leverage.

The brokerage estimates revenue of ₹12,963.3 Cr in FY27 and ₹15,107.3 Cr in FY28, with net profit of ₹381.4 Cr and ₹694.5 Cr, respectively.

Revenue Growth Outpaces Expenses

Delhivery’s consolidated operating revenue rose 19.8% to ₹3,066.4 Cr in Q2 FY27 from ₹2,559.3 Cr a year earlier. Sequentially, revenue increased 4.6% from ₹2,930.7 Cr.

Including other income of ₹66.6 Cr, total income stood at ₹3,133 Cr, compared with ₹2,651.5 Cr in Q2 FY26.

Total expenses increased 14.2% to ₹3,093 Cr from ₹2,708.1 Cr. Freight, handling, and servicing costs, its largest expense head, rose 19.1% to ₹2,195.1 Cr.

The company posted a pre-tax profit of ₹39 Cr against a loss of ₹53.2 Cr a year earlier. A net tax credit of ₹1.6 Cr took its consolidated net profit to ₹40.6 Cr.

However, Delhivery’s acquisition of Ecom Express affected the comparison. Excluding the acquisition impact, the company said its net profit in Q2 FY26 and Q1 FY27 would have stood at ₹59 Cr and ₹62 Cr, respectively.

Express Parcel Volumes Rise

Delhivery’s express parcel volumes rose 32.1% YoY to 325 Mn shipments, driven by market share gains and customer demand. Equirus said growth exceeded its FY27 guidance of 20-30%.

PTL volumes increased 14.2% to 5.45 Lakh metric tonnes, while revenue grew 23.2% on higher volumes and yields. Equirus attributed less than 30% of the yield increase to inflation-linked pricing revisions.

Adjusted EBITDA rose 48% YoY to ₹123 Cr, with margins improving to 4% from 3.3%.

Supported by pricing revisions and higher network utilisation, Delhivery expects express parcel service EBITDA margins to reach 16-18% and PTL margins to exceed 15% by FY27-end. Overall transportation margins are expected to expand 130-150 basis points during FY27.

Delhivery Local Revenue Run Rate Doubles To ₹200 Cr

Delhivery is expanding its intra-city, international, and financial services businesses. Delhivery Local operates across Delhi NCR, Bengaluru, Mumbai, Hyderabad, Ahmedabad, Jaipur, Pune, and Chennai. Its annualised revenue run rate doubled sequentially to around ₹200 Cr in Q2 FY27.

The company raised the platform’s FY27 exit run rate target to ₹280 Cr from ₹250 Cr, targeting ₹800-1,000 Cr in annualised revenue within two years.

Its board also approved an equity investment of up to ₹36 Cr in wholly owned subsidiary Delhivery Fintech Distribution, supporting financial product distribution across its vendor network and co-lending partnerships.

Delhivery said AI automation cut customer support and proof-of-delivery validation costs by over 50% without affecting quality. It has begun manufacturing customised autonomous mobile robots through Delhivery Labs and plans to deploy 100 self-developed autonomous pallet transportation vehicles by Q4 FY27.

October volumes exceeded the company’s initial expectations.

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