Delhivery shares zoom 15% on record EBITDA margin expansion

Shares of Delhivery Ltd jumped 14.61 per cent on Monday to touch a high of Rs 353.10 after posting a solid set of numbers in the January-March 2025 quarter (Q4 FY25).

Nuvama Institutional Equities said the logistics services provider reported a robust 16 per cent quarter-on-quarter (QoQ) jump in Q4 FY25 in EBITDA to Rs 119 crore (42 per cent above its estimates), largely led by part truckload (PTL) (188 per cent above estimates).

"PTL's revenue surged 24 per cent (volume +19 per cent; realisation +5 per cent) with record EBITDA margins of 10.8 per cent (versus 2.2 per cent year-on-year) on the back of better yield, fleet utilisation and operating leverage. Express parcel revenue grew 3 per cent, led by realisation (+2 per cent) and volume (+1 per cent)," the domestic brokerage also said.

Nuvama mentioned that Delhivery is well placed to benefit from consolidation in Express Parcel, more so with e-com Express acquisition (pending CCI approval), and rapid scale-up in PTL along with margin expansion.

It raised EBITDA estimates by 8 per cent/13 per cent YoY, largely on PTL's business margins. Nuvama maintained its 'Buy' call on Delhivery and upwardly revised target price to Rs 430 from Rs 380 earlier.

Following the strong Q4 FY25 results, the brokerage expects a positive future trajectory for the logistics services provider, driven by sustained profitability, reduced capex spend, aggressive PTL growth, robust margins in PTL and an acquisitive growth strategy.

"Delhivery has already started seeing larger monthly volumes since April, potentially driving market share gains as well as improved pricing, thus leading to recovery of margins to earlier levels (16 per cent in FY25 versus 18.4 per cent in FY24)," Nuvama further stated.

Separately, Vaishali Parekh, Vice-President (Technical Research) at Prabhudas Lilladher, said those holding the stock can continue with their positions, adding that it may go up to Rs 380 in the near term.