Delhivery Shares Rally 9% as Q2FY27 Profit Swings to ₹41 Crore

Delhivery’s Quarterly Turnaround Puts Operating Scale Under the Lens

A return to profit and faster parcel growth lifted the stock, but investors will look for evidence that better margins can endure.

Profit returns as revenue and shipments expand

Delhivery’s September-quarter result marked a clear improvement from the year-earlier period, when it recorded a consolidated loss of ₹50.3 crore. Revenue from operations rose to ₹3,066.3 crore from ₹2,559.3 crore, a 20% increase. The change matters because it pairs the return to profit with growth in the underlying business rather than relying on a revenue contraction to explain the improved bottom line.

Parcel volumes were a notable contributor. Express parcel shipments reached 325 million, up 32% year on year, while the segment’s revenue grew 22%. Part Truck Load volumes rose 14% to 545,000 metric tonnes, with revenue increasing 23%. These figures show growth across two major operating lines, although they do not by themselves establish how much each contributed to the overall profit improvement.

Margin progress is central to the earnings story

The company reported that EBITDA more than tripled to ₹2.5 crore and that its EBITDA margin expanded to 6.7%, compared with 2.7% in the year-earlier quarter. The margin improvement is an important part of the result: in a logistics business, sustained profitability depends not only on adding shipments but also on managing the cost and efficiency of handling them.

Delhivery also said investments in artificial intelligence are beginning to improve sales productivity and customer onboarding, while speeding up claims and dispute resolution and helping detect fraud. Those are management-reported benefits; their financial contribution was not quantified in the information provided. Investors may therefore look for continued operating gains before treating technology-led efficiencies as a durable earnings driver.

A strong quarter meets a challenging operating backdrop

Management cited rising fuel prices, labour availability issues and multiple statutory changes as sources of macroeconomic volatility. It said network service levels heading into the festive season were the best recorded by the company, even as profitability improved. That combination is encouraging, but the pressures it identified could still test costs and service performance as activity changes through the second half of FY27.

The stock rose more than 8% in Monday trading, opening at ₹400 and reaching an intraday high of ₹419.85. At 9:50 a.m., it was at ₹418.85, with around seven million shares traded. The move came as the Nifty 50 was also higher, so the session’s broader market strength is relevant context alongside Delhivery’s results.

Brokerage outlook balances near-term gains with later revisions

Jefferies said EBITDA and margins were above its estimates despite a deferred festive season. It raised its FY27 earnings-per-share estimate by 21%, while cutting its FY28–FY29 estimates by 8%–10%. The brokerage maintained a Buy rating but lowered its target price to ₹470 from ₹540, citing a lower valuation multiple in its assessment. These are analyst estimates and opinions, not company guidance or guaranteed outcomes.

The contrasting estimate changes suggest the immediate quarter improved the near-term earnings picture, while expectations beyond FY27 remain more cautious. The brokerage also expects Delhivery’s underperformance against peers since the June quarter to reverse as margin pressures ease. Whether that view plays out will depend on sustained operational execution and the company’s ability to convert volume growth into consistent profitability.

Key Highlights

• Q2FY27 consolidated PAT was ₹40.6 crore, against a loss of ₹50.3 crore a year earlier.
• Revenue from operations increased 20% year on year to ₹3,066.3 crore.
• Express parcel shipments grew 32% to 325 million; PTL volumes rose 14% to 545,000 metric tonnes.
• The stock gained more than 8% in Monday trading, while the Nifty 50 was also higher.
• Jefferies retained its Buy rating but cut its target price to ₹470 from ₹540.

Investor Note: The quarter strengthens Delhivery’s near-term earnings case, but one return to profit does not settle the question of earnings durability. Investors may weigh shipment growth against cost pressures, margin consistency and the differing FY27 and FY28–FY29 brokerage estimates before drawing conclusions from the share-price rally.