Delhivery (DELHIVER IN) – Q1FY27 Result Update – Inflationary pressures erupt – HOLD
Published on 10 Aug 2026
We cut our FY27E EBITDA estimates by 24.3% as we fine tune our margin assumptions for B2C and PTL division given sharp inflationary pressure arising from rise in fuel prices and revision in minimum wages across 4 states like Haryana, Karnataka, UP and Punjab. DELHIVER IN reported a weak operational performance with EBITDA margin of 4.9% (PLe 7.0%) due to fuel & wage inflation. As fuel pass through clauses have been activated margin recovery can be swift from 2QFY27E. However, we believe passing wage cost inflation via repricing client contracts could take a bit longer and consequently we have trimmed our service EBITDA margin estimates for B2C/PTL division to 16.8%/13.1% respectively in FY27E. Led by healthy growth in volumes we expect sales CAGR of 18% over the next 2 years with EBITDA margin of 6.7%/9.5% in FY27E/FY28E. Retain HOLD with a TP of INR503 (35x FY28E EBITDA; no change on target multiple) given imminent margin pressure.
