Delhivery (DELHIVER IN) – Q4FY26 Result Update – Turns FCFF positive – BUY
Published on 18 May 2026
We cut our adjusted EBITDA estimates by 5% as investment in new businesses (on demand intra-city logistics, international air-economy and financial services) is pegged at INR1,300-1,600mn in FY27E. DELHIVER IN reported better than expected operating performance with EBITDA margin of 7.5% (PLe 6.7%) aided by healthy traction in B2C and PTL division. Led by better scale advantage, improvement in working capital cycle to 11 days and reduction in capex intensity to 4.7% of sales, DELHIVER IN turned FCFF positive in FY26. Amid curbs on insourcing by a large marketplace platform, the B2C segment has registered healthy performance since the last two quarters. On the other hand, rising utilization has led to an improvement in service EBITDA margin of PTL division to 13.5% in 4QFY26. Given evident growth/margin levers in B2C/PTL division respectively we expect sales CAGR of 17% over the next 2 years with EBITDA margin of 8.9%/10.2% in FY27E/FY28E. DELHIVER IN trades at 47x/31x our FY27E/FY28E pre-IND AS EBITDA estimates. Retain BUY with a TP of INR534 (35x FY28E EBITDA).
