Home / Business and Economy / Margin Hits Cloud Delhivery's Q1, Citi Optimistic
Margin Hits Cloud Delhivery's Q1, Citi Optimistic
10 Aug
Summary
- Brokerages show divided opinions following Delhivery's Q1 results.
- Citi raises price target, citing expected margin rebound.
- Net profit dropped 64.9% in Q1 FY27 to Rs 32 crore.
Delhivery Ltd. reported its first-quarter results on Saturday, April 8, 2026, revealing a mixed response from financial analysts. While Citi maintained a 'buy' rating and increased its price target to Rs 570, citing an expected margin rebound, other brokerages like Morgan Stanley, Nuvama, and JPMorgan adjusted their targets downwards.
The company's net profit for the quarter ended June 30, FY27, saw a significant decrease of 64.9%, falling to Rs 32 crore from Rs 91 crore in the same period last year. Revenue, however, grew by 27.8% to Rs 2,931 crore. Operational performance indicated a 4.5% drop in EBITDA to Rs 142 crore, with Ebitda margins contracting year-on-year.
Factors such as higher-than-expected impacts from fuel price increases and minimum wage hikes, which are expected to be passed on in the second quarter, contributed to the margin hits. Citi highlighted upcoming e-commerce opportunities for Delhivery, including 3PL Quick Commerce and Reverse Logistics. JPMorgan believes margins bottomed in Q1 and expects a sharp recovery in the second half of the fiscal year.
Morgan Stanley maintained an 'equal-weight' rating but lowered its price target. The brokerage anticipates elevated management team responsibilities in the coming quarters. Delhivery shares have shown minimal movement in recent trading sessions, trading within a range defined by their 52-week high and low.
