Delhivery Ltd. is one of the companies that have been seeing incredible changes take place in the Indian logistics sector, and its Q1 FY26 results have brightened the mood of investors and pushed share prices as high as 5. So, what makes this earnings report so powerful and is it likely that investors would do well to jump on that bandwagon?

Delhivery Q1 FY26 Financial Highlights

Exceptional Profit Growth Drives Stock Rally

Delhivery has recorded excellent first-quarter financial results in the first quarter of FY26 with a 68.5 percent increase in net profit to 91.04 crore as compared to 54.35 crore in the same quarter last. Such impressive growth has been the prime factor that contributed to the stock surge of late.

The operations increased its revenue by 5.6% to 2,294 crore, and the profit before tax shot up by a huge 69.28% to 89.67 crore. All these are indicating an operational efficiency and good cost control measures in the company.

EBITDA Margin Expansion Shows Operational Excellence

One of the most encouraging aspects of Delhivery’s Q1 results was the significant EBITDA margin expansion to 6.5% in Q1 FY26, compared to 4.5% in the previous year. The absolute EBITDA figure stood at ₹149 crore, representing a 53.6% increase from ₹97 crore in Q4 FY24.

This margin improvement demonstrates the company’s ability to leverage its scale and optimize operations, a crucial factor for long-term profitability in the competitive logistics sector.

Segment-Wise Performance Analysis

Express Parcel Business: The Growth Engine

The express parcel segment, which forms the backbone of Delhivery’s operations, showed remarkable resilience with:

  • 10% year-on-year revenue growth to ₹1,403 crore
  • 14% increase in shipment volumes reaching 208 million deliveries
  • Continued momentum into Q2, indicating sustained demand

This growth is particularly significant as it demonstrates Delhivery’s ability to gain market share in India’s rapidly expanding e-commerce logistics sector.

Part Truck Load (PTL) Segment Delivers Strong Results

The PTL segment showcased robust performance with:

  • 15% year-on-year tonnage growth to 458,000 metric tonnes
  • 17% revenue increase to ₹508 crore
  • Service EBITDA margin expansion by 750 basis points to 10.7%

This segment’s strong performance indicates Delhivery’s success in scaling its B2B logistics operations.

Mixed Performance in Other Segments

While core segments performed well, some business lines faced challenges:

  • Supply chain services revenue declined 20.84% to ₹205 crore
  • Truckload segment revenue fell 5.12% to ₹148 crore
  • Cross Border Services saw significant decline with revenue dropping to ₹24 crore

These declines highlight the need for strategic focus on higher-margin, scalable business segments.

Analyst Recommendations

Brokerage Houses Divided on Price Targets

Despite the strong quarterly performance, analyst opinions remain mixed regarding Delhivery’s ability to reach its IPO price of ₹487:

Only 8 out of 19 “”buy”-rated analysts expect the stock to cross its IPO price, despite the positive earnings momentum.

Key Analyst Views:

Jefferies—Underperform Rating (₹350 target):

  • Cites 35% below-estimate EBITDA due to timing mismatches
  • Concerned about competitive pressures in 3PL sector

Goldman Sachs – Neutral Rating (₹375 target):

  • Notes lower realization despite volume growth
  • EBITDA margin 265 basis points below estimates

Kotak Institutional Equities – Buy Rating (₹500 target):

  • Highlights 77% sequential PBT growth
  • Emphasizes operational leverage and network efficiency

JM Financial—Buy Rating (₹500 target):

  • Praises cost efficiencies and margin improvements
  • Cites improved industry structure and consolidation benefits

Strategic Developments— Ecom Express Acquisition

Integration Progress Exceeds Expectations

CEO Sahil Barua revealed that the ₹300-crore Ecom Express acquisition is progressing better than expected:

  • 50-60% volume retention post-acquisition (vs. originally guided ~30%)
  • Lower integration costs than initially estimated
  • Full financial impact expected in Q2 FY26

This acquisition is crucial for Delhivery’s market consolidation strategy and could provide significant synergies.

Market Position and Future Outlook

Industry Tailwinds Support Growth

Several factors favor Delhivery’s continued growth:

  1. Market consolidation in the logistics sector
  2. Pause in Meesho’s insourcing benefiting third-party logistics players
  3. Growing e-commerce penetration in India
  4. Improved operational leverage from scale benefits.

Financial Projections Look Promising

Motilal Oswal Financial Services forecasts impressive growth metrics for FY25-28:

  • 14% CAGR in revenue
  • 38% CAGR in EBITDA
  • 53% CAGR in adjusted PAT
  • Margin stabilization at 16-18%

Should You Buy Delhivery Stock?

Strengths Supporting the Investment Case

  1. Strong operational performance with improving margins
  2. Market leadership position in Indian logistics
  3. Successful acquisition integration providing scale benefits
  4. Favorable industry dynamics with consolidation opportunities

Risks to Consider

  1. Stock trading below IPO price indicates previous investor skepticism
  2. Mixed analyst sentiment despite strong results
  3. Competitive pressures in the logistics sector
  4. Economic sensitivity affecting freight volumes

Current Valuation and Technical Outlook

With shares trading at ₹449.65 (up 4.6% on results day), Delhivery has gained 29.06% year-to-date but remains 32% below its three-year high. The stock’s market capitalization stands at ₹32,092 crore.

Final thoughts

The Q1 FY26 results of delivery show that the company has managed to produce high operational performance despite the challenges faced in the market. The profound increase in profitability indicators together with the successful strategic acquisition gives the company everything it needs in the future expansion.

But investors should take it with sober hope in view of the favorable trends in operations and the sensitive opinions by analysts. The stock seems to fit the type of investor that wants an exposure to the growing logistics business in India and especially those that can put out with short term sways in view of medium-term returns.

To the current shareholders, it is the results which give them confidence on the execution abilities of the management team. Dollar-cost averaging into the position may be considered by new investors because of the support of the stock in the current trading range and the improving fundamentals.