Delhivery share: Brokerages mixed post Q1; Kotak bullish, Jefferies cautious

Leading brokerages offered a mixed outlook on Delhivery following its Q1FY26 results, with divergence in views on profitability sustainability and volume recovery. While Kotak Institutional Equities maintained a Buy rating, citing strong execution and business model resilience, Jefferies retained an Underperform stance and Goldman Sachs stayed Neutral, flagging margin concerns and limited near-term upside.

Kotak Institutional Equities on Delhivery share: Business model resilience and PTL scale-up

Rating: Buy | Target Price: ₹500
Kotak highlighted Delhivery’s 77% sequential jump in PBT despite operational disruptions due to weather and Operation Sindoor, and wage cost increases. The firm credited this outperformance to Delhivery’s ability to add Express Parcel volumes efficiently, leveraging existing infrastructure without inflating corporate costs.

The brokerage noted continued scale-up in Partial Truckload (PTL) services, improving Delhivery’s ability to absorb volume variability in the express segment. Kotak also sees the company confidently expanding its supply chain business and investing in new verticals.

Goldman Sachs on Delhivery share: Profitability may improve, but already priced in

Rating: Neutral | Target Price: ₹375
Goldman Sachs reported Q1 revenue at ₹22.94 billion (+6% YoY), with e-commerce volume up 14% but overall revenue up only 10%, suggesting lower realizations. PTL volumes rose 15% YoY, but adjusted EBITDA margin fell short at 3.3%, 265 basis points below estimates.

Despite expectations of improved profitability in Q2FY26 on the back of higher express e-commerce volumes, Goldman Sachs believes recent stock performance has already priced in these positives, limiting near-term upside.

Jefferies on Delhivery share: Margin miss, structural overhang from insourcing

Rating: Underperform | Target Price: ₹350 (raised)
Jefferies flagged a 35% EBITDA miss due to a timing mismatch in volume realisation from Ecom Express. However, adjusting for the delayed volumes, Express Parcel growth was in line with internal estimates.

The brokerage expressed concern that logistics costs make up 29–78% of marketplace sales, and insourcing by large e-commerce players poses a structural headwind for third-party logistics (3PL) companies like Delhivery. While the target price was raised to ₹350, Jefferies remained cautious.

Summary of brokerage views on Delhivery share:

Disclaimer: This article is based on brokerage reports and is for informational purposes only. It does not constitute a recommendation or investment advice. Investors should consult their financial advisors before making investment decisions.