Delhivery Stock Falls 6% Despite Revenue Growth on Flat Q4 Profit

Delhivery Stock Declines on Flat Q4 Profit Despite Surge

Shares of Delhivery experienced a notable decline, falling nearly 6% to an intraday low of ₹447.85 on the (BSE). This dip occurred as investors reacted cautiously to the logistics company’s fourth-quarter fiscal year 2026 (Q4 FY26) financial results, which revealed a largely flat profit despite robust top-line expansion. The broader market downturn, influenced by escalating crude oil prices, ongoing geopolitical tensions in West Asia, and rising US bond yields, further exacerbated the sell-off. The benchmark BSE Sensex and indices also saw significant drops, declining as much as 1.41% and 1.38% intraday, respectively. While Delhivery managed to recover some of its losses, it was still trading 4.75% lower at ₹453.10 per share by 11:26 IST, with the company’s market capitalization standing at approximately ₹33,901.9 Cr (around $3.5 billion) at that time.

Financial Performance: Profit Stagnation Amid Revenue Expansion

In its Q4 FY26 earnings report, Delhivery disclosed a consolidated net profit of ₹72.4 Cr, which remained virtually unchanged from the ₹72.5 Cr recorded in the same quarter of the previous fiscal year. This profit stagnation occurred despite a substantial 30% year-on-year () increase in operating revenue, which climbed to ₹2,850 Cr from ₹2,191.6 Cr in Q4 FY25. The company’s total expenses also saw a significant rise, increasing by 26.9% YoY to ₹2,853.1 Cr during the quarter. On an operational level, however, the company demonstrated stronger performance, with Earnings Before Interest, Taxes, , and Amortization () jumping by 94% YoY to ₹231 Cr. This growth was accompanied by an expansion in the EBITDA margin, which improved to 8% from 5.4% in the prior year’s quarter. The transport business emerged as the primary engine of growth, with revenue from this segment surging 38% YoY to ₹2,453 Cr.

Full-Year Fiscal 2026 Results and Operational Highlights

For the entirety of fiscal year 2026 (FY26), Delhivery reported a more positive profit trajectory, with its full-year profit rising 8% YoY to ₹321 Cr. Operating revenue for the fiscal year grew by 17% to ₹10,486 Cr. A key operational achievement highlighted by the company was the successful delivery of over 1 billion express shipments during FY26. This milestone signifies a substantial increase in annual shipment volumes, which grew by 40% YoY to reach 1,054 million units. This volume growth underscores the company’s expanding reach and operational capacity within the rapidly growing Indian logistics market.

Strategic Investments and Board Appointments

Delhivery continued its strategic focus on enhancing its logistics infrastructure through significant investments in Artificial Intelligence (AI) led solutions during the quarter. This commitment to technological advancement aims to optimize operational efficiency and service delivery. In addition to its operational and financial updates, the company also announced key changes at the board level. Notably, Kabir Ahmed Shakir, the Chief Financial Officer (CFO) of Tata Communications, was appointed as an independent director. This appointment is expected to bring valuable financial and strategic oversight to the company’s governance and future planning.

Brokerage Ratings Remain Positive Despite Stock Volatility

Despite the recent decline in its stock price, a majority of financial analysts and brokerages have maintained a positive outlook on Delhivery, reaffirming their ‘Buy’ ratings following the Q4 FY26 results. UBS maintained its ‘Buy’ rating and increased its price target to ₹630, citing strong volume growth and the anticipated benefits from the integration of Ecom Express. Citi also reiterated its ‘Buy’ recommendation with a target price of ₹565, highlighting the company’s improving free cash flows and the strategic advantages gained from e-commerce outsourcing. Goldman Sachs, while maintaining a ‘Neutral’ rating and a target price of ₹480, acknowledged the robust parcel growth but noted concerns regarding weaker realisations and elevated integration costs. Nuvama further supported the company with a ‘Buy’ call and an increased target price of ₹580, expressing confidence that Delhivery is well-positioned to capture further market share in the Part Truck Load (PTL) and express logistics segments.