Delhivery shares plunge 4% as net profit tumbles 65% YoY. Why Nuvama still maintains Buy rating
The shares of Delhivery plunged 4% on Monday after the logistics major reported a 65% year-on-year decline in net profit to nearly Rs 32 crore
The shares of Delhivery plunged 4% on Monday after the logistics major reported a 65% year-on-year decline in net profit to nearly Rs 32 crore for the first quarter of FY2027, from Rs 91 crore reported in the same period last year.Delhivery shares opened at Rs 456.40 apiece on Monday morning after the company on Saturday reported the sharp decline in net profit. Revenue from operations however rose 28% YoY to Rs 2,930.7 crore during the April-June quarter of the ongoing FY2027, from Rs 2,294 crore posted in the corresponding quarter of the previous financial year.EBITDA or earnings before interest, tax, depreciation and amortisation declined 4% to Rs 142.2 crore, while the EBITDA margin stood at 4.9%, compared with 6.5% a year earlier.
The firm’s total expenses rose 29% YoY to Rs 3,011.6 crore in the quarter ended June, compared with Rs 2,326.6 crore a year ago and Rs 2,853.1 crore in the previous quarter.Delhivery said the operating environment was particularly challenging due to volatile labour availability amid elections and climate disruptions, geopolitical uncertainty and changes to labour codes. The company also said higher global crude prices during Q1 pushed up petrol and diesel prices as well as the cost of crude-related consumables.Also read | Delhivery Q1 Results: Net profit tumbles 65% YoY to Rs 32 crore, but revenue rises 28%Nuvama on Delhivery share priceNuvama Institutional Equities maintained its ‘Buy’ call on the shares of Delhivery, but reduced its target price to Rs 570 apiece from Rs 580 apiece earlier.
The latest target price implies more than 20% upside potential from the stock’s previous closing price of Rs 473 apiece on NSE.The brokerage reduced its earnings estimates for Delhivery, citing Q1 margin hit, higher ESOP charges and higher spends on new services. However, it noted that fuel pass-through now covers 97–98% of contracts with wage inflation led repricing underway, hence it expects margin recovery from Q2.“Delhivery remains on a robust volume growth trajectory, supported by continued market share gains across Express and PTL,” Nuvama said.Delhivery share priceDelhivery shares have recorded marginal gains in a week, but have fallen more than 9% in one month. The stock, however, is up 18% in 2026 so far.In the longer term, Delhivery shares have delivered nearly 2% returns in a year and 12.5% in three years.
The company has a market capitalisation of more than Rs 26,035 crore.Also read | Delhivery top-deck rejig: COO Ajith Pai resigns; Vani Venkatesh named deputy CEO(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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