At a Glance
Delhivery delivered (pun intended) a Q1 FY26 PAT of ₹91 Cr on revenues of ₹2,294 Cr, riding on stronger e-commerce volumes and better cost control. EBITDA margin improved to 6%, a record high for the company. Stock trades at ₹430, with a sky-high P/E of 161 – because apparently, investors love paying for dreams. The Ecom Express acquisition adds spice, but the low ROE (1.8%) and heavy reliance on other income raise eyebrows.
Introduction
Once the poster child of India’s logistics tech boom, Delhivery has been the market’s problem child ever since its IPO. Loss-making for years, it’s finally showing profits – like a college kid finally getting a job after endless internships. Q1 FY26 shows improvement in profitability, but at what cost? A P/E of 161 suggests investors think Delhivery will soon become Amazon Logistics. Reality? It’s still figuring out how to consistently make money without relying on “other income” steroids.
Business Model (WTF Do They Even Do?)
Delhivery offers end-to-end logistics:
- Express Parcels (e-commerce backbone)
- Part Truckload (PTL) & Full Truckload (FTL) freight
- Warehousing & Supply Chain Solutions
- Cross-border logistics
- Value-added services like returns, COD, fraud detection.
It thrives on scale, technology, and razor-thin margins. The problem? Logistics is a cash-burning warzone, and while Delhivery leads in e-commerce delivery, competition from Blue Dart, Amazon, Flipkart’s Ekart, and startups keeps pricing power weak.
Financials Overview
Q1 FY26 Highlights:
- Revenue: ₹2,294 Cr (+5.6% YoY)
- EBITDA: ₹149 Cr (margin 6.5%)
- PAT: ₹91 Cr (vs ₹10 Cr Q4 FY25)
- EPS: ₹1.22 (annualized ~₹4.9)
FY25 Recap:
- Revenue: ₹8,932 Cr
- PAT: ₹199 Cr
- ROE: 1.8%
- Dividend: Nil (profit still too fragile).
Fresh P/E based on annualized EPS: ₹430 / ₹4.9 ≈ 87.7 (slightly better than 161 but still ultra-premium).
Valuation
- P/E Method
- Industry avg: ~25
- Delhivery P/E: 88 (adjusted)
- Fair value: ₹180–₹220.
- EV/EBITDA
- FY25 EBITDA ~₹376 Cr, EV ~₹32,000 Cr
- EV/EBITDA ~85x
- Fair range: ₹200–₹240.
- DCF
- Assuming 15% growth, 10% discount, terminal 4% – fair value ₹250.
Fair Value Range: ₹200–₹250. At ₹430, it’s flying on hope, not fundamentals.
What’s Cooking – News, Triggers, Drama
- Ecom Express Acquisition – strengthens market share but integration risk exists.
- Cost controls – improved margins this quarter.
- Board Changes – new independent directors onboard, signaling governance focus.
- Risks – competition, pricing pressure, low ROCE/ROE.
Balance Sheet
| (₹ Cr) | Mar 25 |
|---|---|
| Assets | 12,063 |
| Liabilities | 2,631 |
| Net Worth | 9,432 |
| Borrowings | 1,422 |
Auditor’s Roast:
Cash is okay, debt is manageable, but profitability is fragile. Net worth inflated by IPO proceeds.
Cash Flow – Sab Number Game Hai
| (₹ Cr) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Operating Cash | -30 | 472 | 567 |
| Investing Cash | -3,408 | -99 | -104 |
| Financing Cash | 3,538 | -366 | -432 |
Comment:
Ops cash turned positive in FY24–25. Finally, the business is generating cash instead of burning it.
Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | 1.8% |
| ROCE | 2.7% |
| P/E | 88 |
| PAT Margin | 2% |
| D/E | 0.15 |
Verdict:
Margins improving but still weak. P/E absurdly high.
P&L Breakdown – Show Me the Money
| (₹ Cr) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 7,225 | 8,142 | 8,932 |
| EBITDA | -452 | 127 | 376 |
| PAT | -1,008 | -249 | 199 |
Comment:
Transition from losses to profits is good, but consistency is key.
Peer Comparison
| Company | Revenue (Cr) | PAT (Cr) | P/E |
|---|---|---|---|
| Container Corp | 8,887 | 1,314 | 33 |
| Blue Dart | 5,819 | 248 | 57 |
| Transport Corp | 4,586 | 428 | 21 |
| Delhivery | 9,054 | 199 | 88 |
Comment:
Delhivery has highest revenue but lowest margins and ROE. Valuation is disconnected from reality.
Miscellaneous – Shareholding, Promoters
- Promoters: None – it’s institutionally owned.
- FIIs: 53% (falling from 74% in 2022).
- DIIs: 30% (rising steadily).
- Public: 17% (retail loves the story).
EduInvesting Verdict™
Delhivery is India’s leading logistics tech company, finally turning profitable. Growth is steady, margins are improving, and acquisitions like Ecom Express could boost market dominance. However, the business is still in transition, with low returns on capital and sky-high valuations.
SWOT Snapshot:
- Strengths: Tech-driven logistics, e-commerce growth tailwinds.
- Weaknesses: Low profitability, dependence on other income, fragile margins.
- Opportunities: Cross-border growth, scale economies, new services.
- Threats: Intense competition, pricing wars, valuation correction.
Final Take:
Delhivery has delivered profits, but the stock price is already delivering future expectations. Unless margins expand and profits surge, the upside looks limited. For believers, it’s a long-term logistics play. For value hunters, better wait for a price drop.
Written by EduInvesting Team | 01 August 2025
SEO Tags: Delhivery, Q1 FY26 Results, Logistics Stocks, Ecom Express Acquisition
