Delhivery to gain from higher volumes, margins

Core transportation segments post strong numbers in Q1

- RAM PRASAD SAHU

The stock of logistics major Delhivery was one of the major gainers in the BSE 500 index, gaining over 7 per cent after a strong show in the first quarter of 2025-26 (Q1FY26) and expectations of improved growth and margins going ahead.

Given the Q1 show and prospects going ahead, most brokerages have revised their estimates upwards. The stock has been a major outperformer, beating peers and major indices with returns of 49 per cent over the past three months. At the current price, the stock is available at price to earnings (P/E) valuation of 41 times its FY27 projected earnings.

The near-term trigger for the stock is the strong operational performance in Q1. Led by the core transportation segments of part truckload (PTL) and express parcel, revenues were up 5.6 per cent year-on-year (Y-o-Y). While volumes for PTL were up 15 per cent, express parcel segment saw a growth of 10 per cent over the year-ago quarter. On a sequential basis, while PTL volumes were flattish, express parcel volumes were up 18 per cent.