Delhivery (DELHIVER IN) – Q3FY26 Result Update – Margins rebound – Upgrade to ‘BUY’
Published on 01 Feb 2026
We broadly retain our FY27E/FY28E EPS estimates and upgrade DELHIVER IN to a BUY (earlier ACCUMULATE) with a TP of Rs516 valuing the stock at EV/EBITDA multiple of 35x (earlier 38x) as we roll forward our valuation to FY28E. Adjusting for the integration cost charge of Rs350mn arising from acquisition of E-com express, DELHIVER IN’s operating performance was in-line with our estimate with EBITDA margin of 5.2% (PLe 5.0%). While volume surge was offset by decline in yields, the service EBITDA margin of B2C segment touched 18% mark after 5 quarters. On the other hand, service EBITDA margin of PTL division was at an all-time high of 11.1%. Scaling PTL volumes from current levels and optimizing the volume/yield mix within B2C segment will be a key earnings lever. Overall, we expect sales CAGR of 15% over the next 3 years with EBITDA margin of 6.1%/9.6%/10.2% in FY26E/FY27E/FY28E. Upgrade to BUY with a TP of Rs516.
