Delhivery Shares Can Zoom 24%: ICICI Securities
Delhivery Ltd.’s express parcel volumes grew 33% year-over-year (YoY), with 24% YoY revenue growth, according to the company’s Q2 FY26 results. The strong growth outlook has led ICICI Securities to predict a 24% rise in Delhivery shares.
The company’s Q2 FY26 consolidated revenue was Rs 26 billion, up 11.6% quarter-over-quarter (QoQ) and 16.9% YoY, in line with estimates. Adjusted Ebitda was Rs 830 million, with a margin of 3.2%, which was flattish QoQ but up 278 basis points YoY.
Express Parcel Volumes Drive Growth
The growth in express parcel volumes was driven by a 33% YoY increase, with the yield declining 3% QoQ due to an inferior mix. Despite this, the company’s pricing power was evident, with partial truck-load tonnage growing 12% YoY, despite a 3% YoY price increase.
For investors looking to invest in the logistics sector, Delhivery’s strong growth outlook is a positive sign. The company’s ability to maintain pricing power and drive volume growth is a key factor in its success.
Service-Level Ebitda Margin Misses Estimates
However, the service-level Ebitda margin for express parcel and partial truck-load (PTL) missed estimates by around 100 basis points due to a premature festive capacity build-up and a week’s delay in festive dispatches following the GST rate change.
Despite this, the company’s loss was Rs 505 million in Q2 FY26, compared to a profit after tax (PAT) of Rs 910 million in Q1 FY26. The loss was largely due to one-time expenses and the impact of the GST rate change.
ICICI Securities Predicts 24% Rise in Delhivery Shares
ICICI Securities has predicted a 24% rise in Delhivery shares, citing the company’s strong growth outlook and improving profitability. The brokerage firm has maintained a ‘buy’ rating on the stock, with a target price of Rs 350.
For investors looking to buy Delhivery shares, the predicted rise in stock price is a positive sign. However, it’s essential to do your own research and consider your investment goals and risk tolerance before making any investment decisions.
Delhivery’s Q2 FY26 Results: Key Highlights
- Consolidated revenue: Rs 26 billion, up 11.6% QoQ and 16.9% YoY
- Adjusted Ebitda: Rs 830 million, with a margin of 3.2%
- Loss: Rs 505 million in Q2 FY26, compared to a PAT of Rs 910 million in Q1 FY26
- Express parcel volumes: grew 33% YoY
- Partial truck-load tonnage: grew 12% YoY, despite a 3% YoY price increase
Overall, Delhivery’s Q2 FY26 results show strong growth in express parcel volumes and revenue, with a predicted 24% rise in shares. For investors looking to invest in the Indian stock market, Delhivery’s strong growth outlook is a positive sign.
Conclusion
In conclusion, Delhivery’s Q2 FY26 results show strong growth in express parcel volumes and revenue, with a predicted 24% rise in shares. The company’s ability to maintain pricing power and drive volume growth is a key factor in its success. For investors looking to invest in the logistics sector or the Indian stock market, Delhivery’s strong growth outlook is a positive sign.