Delhivery’s shares surged almost 10% intra-day after the company reported a consolidated net profit of ₹40.6 crore for Q2 FY27, marking a sharp turnaround from a loss in the same period last year. This milestone reflects accelerating revenue growth and operational improvements across its logistics and local delivery businesses.
- Q2 net profit ₹40.6 Cr vs loss last year
- Express parcel volume up 32% YoY to 325 Mn
- Equirus upgrades stock with ₹505 target price
What happened
Delhivery reported a consolidated net profit of ₹40.6 crore in Q2 FY27, reversing a ₹50.5 crore net loss recorded in the same quarter last year. The company’s revenues rose 19.8% year-over-year to ₹3,066.4 crore, while total expenses increased by 14.2%, leading to improved profitability. The share price reacted positively, climbing as much as 9.7% intra-day on the Bombay Stock Exchange before settling 7.6% higher.
The profitability turnaround was fueled by growth across core logistics services, including express parcel volumes, which increased 32.1% to 325 million shipments. Part truckload volumes also rose 14.2%. Adjusted EBITDA expanded 48% year-over-year to ₹123 crore with margin improvements to 4%. The company attributed rising yields partly to inflation-linked price adjustments and operational leverage through better network utilization.
Why it matters
Delhivery’s profit recovery signals a strong operational rebound after prior losses, bolstering market confidence as reflected in the share price rally and a broker upgrade by Equirus Securities. The brokerage raised its rating to ‘Long’ and set a target price of ₹505 per share, implying upside potential of over 30%. Equirus projects revenue, EBITDA, and express volumes to grow robustly through FY29.
The company’s strategic acquisitions, such as Ecom Express, and expansion into local delivery services have diversified its revenue base. Delhivery Local’s annualized revenue doubled sequentially to approximately ₹200 crore in Q2, with an upward revision of its FY27 exit run rate guidance. Its investment in fintech and automation, including self-developed autonomous delivery vehicles, highlights ongoing innovation aimed at sustaining margin improvements.
What to watch next
Investors will closely monitor Delhivery’s ability to sustain growth momentum over the remainder of FY27, especially the delivery volumes and margin expansion in both express parcel and part truckload segments. The company plans to further improve EBITDA margins to 16-18% for express parcel services and above 15% for PTL by fiscal year-end, supported by pricing power and scale efficiencies.
Additionally, progress in Delhivery Local’s expansion across major Indian metro areas and its financial services initiatives could provide new growth drivers. The planned deployment of 100 autonomous pallet transportation vehicles by Q4 FY27 represents another key development that may enhance efficiency and customer experience. Market participants will also gauge how inflation and cost pressures impact profitability in the near term.