The target price given by the brokerage firm indicates an upside potential of 17.4% in the stock from its closing price on Tuesday.
Delhivery is India’s leading 3PL logistics player, catering to a wide network of 19,000
pincodes. Its service offerings include express parcels, part truck load (PTL), supply
chain services, and others.
The analysts at Motilal Oswal believe that Delhivery is expected to post a 14% revenue CAGR between FY25 and FY28, supported by robust growth in both its express parcel and partial truckload (PTL) businesses. The company’s outlook is driven by strong industry trends, network expansion through the Delhivery-Spoton integration, and increased adoption of integrated logistics solutions, with around 60% of revenue now coming from multi-service customers.Rising demand from Tier 2 and 3 cities and the shift from traditional transport to express logistics are also expected to support growth. Delhivery’s recent acquisition of Ecom Express further strengthens its presence in the segment.
On the margin front, Motilal Oswal stated that the company aims to expand its EBITDA margin to 7% by FY28, up from 4.2% in FY25, aided by scale efficiencies and volume growth, especially in its high-margin PTL segment.
“Since 2011, Delhivery has garnered a sizable share of the express logistics market and has grown exponentially. The company initially focused on the express parcel business – the fastest-growing segment in the logistics industry –to capture growth. Now it is aiming to grow materially in the high-margin PTL express market, which will lead to a strong balance of growth and profitability,” said the brokerage firm in a report.
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Delhivery follows an asset-light model with minimal vehicle ownership and mostly leased infrastructure like delivery, sorting, and warehousing spaces.
Further, Motilal Oswal notes that Delhivery is seen as a key beneficiary of the express logistics market, which is expected to grow at a 14% CAGR between FY23 and FY28, driven by rising adoption in Tier 2 and 3 cities.
Its advantage comes from a growing user base, new category launches, and expanding e-commerce models like D2C and omnichannel. The company’s e-commerce express market share (excluding captive) rose to 25% in FY24 from 12% in FY19.
For FY25–28, the brokerage firm expects the revenue to grow at 14% CAGR, with improved margins from the PTL segment driving profitability. EBITDA margins are projected to rise from 4.2% in FY25 to 7% in FY28, supported by cost efficiencies and better segment mix.
EBITDA and Adjusted PAT CAGR are estimated at 36% and 52% respectively over FY25–28. Return on Equity (RoE) is expected to increase from 1.8% in FY25 to 5.6% in FY28.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)