HSBC has cut its target price on Delhivery to ₹400 per share, while maintaining a ‘Buy’ rating, following a weaker-than-expected Q3FY25 performance. The logistics company missed expectations on both revenue growth and profitability, with muted growth in its express parcel business.
Delhivery’s management acknowledged that the Indian profit pool for logistics has shrunk, but remains optimistic about industry consolidation in the near future. However, HSBC has lowered its EBITDA estimates by 12-13% for FY26-27, reflecting a more cautious outlook on margin improvements.
Despite these challenges, HSBC believes that Delhivery remains well-positioned to capitalize on long-term growth opportunities, especially as e-commerce and supply chain logistics continue to expand in India. However, the brokerage cautions that investors should expect some near-term volatility as the company works through its operational challenges.
