Delhivery (DELHIVER IN) – Q2FY27 Result Update – Margin trajectory to improve from 2HFY27E – BUY
Published on 31 Oct 2026
We increase our pre-IND AS EBITDA estimates by 6%/2%/4% for FY27E/FY28E/FY29E as we fine-tune our volume and realization assumptions for B2C parcel division. DELHIVER IN’s operational performance was better than our estimates with pre-IND AS EBITDA margin of 4.0% (PLe 3.6%) led by calibrated price increases in B2C and PTL division to compensate for fuel and wage inflation. Realization for B2C/PTL division was up 4.0%/5.6% sequentially to INR60 per parcel/INR12.3 per KG respectively. Less than 50%/30% of the price revision in B2C/PTL division is inflation linked indicating proactive repricing measures have been undertaken that could be sticky in nature. With counter-inflationary measures in place and seasonality factor at play in 2HFY27E (3Q/4Q is seasonally strong quarter for B2C/PTL business) we expect operating leverage benefit to play out. Led by healthy growth in volumes we expect sales CAGR of 18% over the next 3 years with EBITDA margin of 6.9%/9.4%/11.0% in FY27E/FY28E/FY29E. Retain BUY with a TP of INR541 (30x Sep-28E pre-IND AS EBITDA; no change in target multiple).
