Delhivery Shares Soar 14% After Q4 Net Profit, But Still Below IPO Price
Shares of Delhivery Ltd. jumped over 14% on Monday, May 19, after the company posted a net profit in the March quarter (Q4). This strong performance has raised investor hopes, though the stock still trades below its IPO price of ₹487.
Q4 Results Bring Cheer
Delhivery reported revenue of ₹2,190 crore for the January–March quarter, a 5.6% rise compared to the same period last year. The company’s Partial Truckload (PTL) business performed strongly, with volumes growing 19% year-on-year. However, growth in its main e-commerce segment remained weak, with volumes up just 1% and revenue rising 3%.
Delhivery’s adjusted EBITDA margin for Q4 stood at 2.5%, which was better than what analysts had expected. This improvement was mainly due to better cost control and improved performance in the PTL segment.
Brokerages React
Brokerage firm Nuvama Institutional Equities has maintained a ‘Buy’ rating on Delhivery and raised its target price from ₹380 to ₹430. The firm believes Delhivery is well positioned to benefit from industry changes, especially as it looks to acquire eCom Express and continues to expand its PTL operations.
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Nuvama said Delhivery’s future performance could be driven by four key factors: sustained profits, lower capital expenses, fast growth in PTL with strong margins, and strategic acquisitions.
Goldman Sachs, however, continues to have a ‘Neutral’ view on the stock. It has kept its target price at ₹325 per share, citing limited upside.
What’s Driving Growth?
The PTL segment has become a key growth driver for Delhivery. Analysts say that the company is benefiting from better vehicle use in its mid-mile network, which is helping improve margins. Unlike the e-commerce segment, PTL is showing stronger signs of growth and profitability.
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The company’s strategy now appears to focus on building this segment, while also keeping costs under control to maintain profitability.
Stock Performance
Delhivery’s shares ended the day up 11.83% at ₹358.80. The stock has gained 3% so far in 2025 but is still trading well below its IPO price of ₹487.
With positive signs of growth and improving margins, market experts believe the coming quarters will be crucial in determining whether Delhivery can fully recover and reach its listing price once again.
Disclaimer: This post is for general informational purposes only. It does not constitute financial advice. Please consult a qualified professional before making financial decisions.
