Delhivery shares zoom 15% on record EBITDA margin expansion

Domestic brokerage firm Nuvama has reiterated its ‘Buy’ rating on Delhivery, citing a strong Q4 FY25 performance, particularly in the company’s Part-Truckload (PTL) segment. PTL revenue surged 24%, propelled by a 19% increase in volume and a 5% rise in realisation. The segment also achieved record EBITDA margins of 10.8%, a significant improvement from 2.2% a year earlier, thanks to improved yields, better fleet utilization, and operating leverage marking a strong case study in supply chain management efficiency.

Delhivery's express parcel segment also grew modestly, with revenue up 3% and a 1% increase in volume and 2% in realisation. According to Nuvama, the company is well-positioned to capitalize on consolidation in the express parcel space, particularly with its proposed acquisition of e-com Express (awaiting CCI approval), a strategic move that reflects emerging trends in digital supply chain transformation and SCM innovations in India.

The brokerage raised its EBITDA estimates for the company by 8–13% year-on-year, driven by PTL’s robust performance. Nuvama also increased the stock’s target price to ₹430 from ₹380, projecting continued momentum based on aggressive PTL expansion, lower capex, and strategic acquisitions. These factors position Delhivery as a frontrunner in the future of supply chain management.

With rising monthly volumes since April, Delhivery is expected to gain market share and pricing power, which could help margins rebound to 16% in FY25. The logistics player continues to be an example of how supply chain demand planning and supply chain management can drive profitability in a dynamic logistics sector.

Delhivery’s growth trajectory and innovation will likely be a key topic at upcoming forums like the Supply Chain Leadership Summit and other best supply chain events in India, as industry leaders seek new strategies in electronic supply chain management, supply chain financing, and future supply chain tracking.