Delhivery Shares Soar 10% Amid Strongest EBITDA Margin Performance Yet

Delhivery news: The Delhivery shares jumped 14.61 percent on Monday, bringing them to an all-time high of 353.10 after a good number of figures in the quarter that ran from January to March 2025 (Q4 FY25).

Nuvama Institutional Equities said the logistics company reported an impressive 16 percent quarter-on-quarter (QoQ) increase in Q4 FY25 EBITDA up to Rs 119 crore (42 percent higher than its estimates) which was largely driven by a part trucks (PTL) (188 percent over estimates).

"PTL's revenues grew by 24 percent (volume +19 percent and realisation +5 percent) which was accompanied by records EBITDA profits of 10.8 percent (versus 2.2 percent year-on-year) due to higher yield, better utilization of fleet and leverage in operating. Express parcel revenues grew by 3 percent, aided by the realisation (+2 percent) in addition to volume (+1 percent)," the domestic brokerage also stated.

Nuvama stated that Delhivery is in a good position to gain from consolidation in Express Parcel, more so because of the e-com Express acquisition (pending CCI approval), and the rapid scaling-up of PTL as well as margin growth.

It increased EBITDA expectations by 8 per cent/13 percent YoY, largely due to the margins of PTL's business. Nuvama reiterated its 'Buy' call on Delhivery and lifted the price target to Rs 430, up from Rs 380 earlier.

In light of the excellent Delhivery Q4 FY25 results, the brokerage anticipates positive growth for the logistics service company, driven by continued profits, a reduction in capex spending coupled with robust PTL growth, solid profitability in PTL, and a bold expansion strategy.

"Delhivery has seen more volume in the month of April, which could lead to Delhivery share price gains and higher prices, leading to a return of margins lower than they were (16 percent in Delhivery Q4 results, compared to 18.4 percent for Fiscal year 24)," Nuvama further declared.