Delhivery Stock Falls 6% Despite Revenue Surge

Shares of Delhivery experienced a notable decline, dropping nearly 6% to an intraday low of ₹447.85 on the BSE. This downturn occurred as investors adopted a cautious stance following the logistics firm’s fourth-quarter fiscal year 2026 (Q4 FY26) results, which showed a largely flat profit despite robust top-line growth.

The broader market sell-off, influenced by rising crude oil prices, geopolitical tensions in West Asia, and increasing US bond yields, also contributed to the pressure on Delhivery’s stock. The BSE Sensex and Nifty 50 indices saw intraday declines of up to 1.41% and 1.38%, respectively.

By 11:26 IST, Delhivery had recovered some ground but was still trading 4.75% lower at ₹453.10 per share. The company’s market capitalization at that time was approximately ₹33,901.9 crore (about $3.5 billion).

Delhivery’s financial disclosures revealed a consolidated net profit of ₹72.4 crore for Q4 FY26, a marginal decrease from ₹72.5 crore in the same period last year. This occurred even as operating revenue saw a substantial 30% year-over-year increase, reaching ₹2,850 crore from ₹2,191.6 crore.

The company’s total expenses rose by 26.9% year-over-year to ₹2,853.1 crore during the quarter. On an operating level, Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) saw a significant jump of 94% year-over-year to ₹231 crore, with the EBITDA margin expanding to 8% from 5.4%. The transport business was identified as the primary engine of growth, with segment revenue climbing 38% year-over-year to ₹2,453 crore.

For the full fiscal year FY26, Delhivery reported an 8% year-over-year increase in profit to ₹321 crore, while operating revenue grew by 17% to ₹10,486 crore. The company also highlighted a significant milestone, having delivered over 1 billion express shipments during FY26, with annual shipment volumes increasing by 40% year-over-year to 1,054 million.

Delhivery continues to invest in artificial intelligence-driven logistics infrastructure. The company also announced key board-level appointments, including Kabir Ahmed Shakir, CFO of Tata Communications, as an independent director.

Despite the stock’s performance, several brokerages maintained a positive outlook on Delhivery post its Q4 FY26 results. UBS reiterated a ‘Buy’ rating with an increased target price of ₹630, citing strong volume growth and benefits from the Ecom Express integration. Citi maintained its ‘Buy’ call at a target price of ₹565, emphasizing improving free cash flows and gains from e-commerce outsourcing. Goldman Sachs, however, maintained a ‘Neutral’ rating with a ₹480 target, noting strong parcel growth but tempered by weaker realisations and elevated integration costs. Nuvama also issued a ‘Buy’ rating and raised its target price to ₹580, expressing confidence in Delhivery’s positioning to capture market share in the part truck load (PTL) and express logistics segments.