Key Points
Delhivery’s Q1 FY27 profit fell 64.9% to ₹31.9 crore despite strong business growth.
Revenue increased 28% to ₹2,930.7 crore, supported by higher logistics and parcel volumes.
Express Parcel shipments surged 55%, but rising labour and fuel costs pressured margins.
Brokerages remain positive on the stock, with several retaining Buy ratings and targets around ₹570.
Delhivery share price slipped 0.53% on August 10, 2026, after the logistics company reported a sharp fall in Q1 FY27 profit. Consolidated net profit dropped 64.9% year-on-year to ₹31.9 crore, even as revenue climbed 28% to ₹2,930.7 crore. The weak profit number raised concerns about higher costs and pressure on margins. Several brokers, though, continue to hold a positive view of Delhivery’s longer-term growth prospects.
Delhivery Q1 FY27 Results: Revenue Surges, But Profit Takes a Hit
Revenue and Profit Performance
Delhivery reported a mixed set of numbers for the quarter ended June 30, 2026. Consolidated revenue from operations increased 28% year-on-year to ₹2,930.7 crore. Net profit, on the other hand, fell sharply to ₹31.9 crore from ₹91.1 crore in the same quarter last year. That works out to a 64.9% decline.
Operating profitability also came under pressure. Higher employee and operating costs reduced the benefit from stronger revenue. As a result, investors are paying closer attention to margins rather than revenue growth alone.
Shipment Growth Tells a Different Story
Delhivery continued to see strong shipment growth during the quarter. Express Parcel volumes increased about 55% year-on-year, pointing to steady demand from e-commerce and third-party logistics customers.
The challenge is turning that higher volume into stronger earnings. Delhivery will need to manage its network efficiently while keeping pricing and costs under control.
Why Did Delhivery Profit Fall Despite 28% Revenue Growth?
Labour and Fuel Costs Pressure Margins
The sharp fall in profit shows the pressure that higher operating costs can place on a logistics company. Delhivery faced higher labour and fuel costs during the quarter. Total expenses grew faster than revenue, which weighed on operating profit.
Logistics companies generally work with tight margins, so even a moderate rise in operating expenses can have a noticeable impact on earnings. That was clear in Delhivery’s Q1 results.
Can Pricing Pass-Through Help?
Investors will watch whether Delhivery can pass some of the higher costs on to customers. Better pricing, higher shipment density and more efficient use of its network could help margins improve in the coming quarters.
The company is also expanding into newer areas, including intra-city logistics and other technology-led services. These businesses could support future scale, although investments in new operations may continue to affect near-term profitability.
Delhivery Share Price: What are Brokers Saying?
Citi and Nuvama Remain Positive
Broker sentiment remains fairly constructive despite the Q1 profit decline. Nuvama has retained its Buy rating, suggesting that it views the margin pressure as manageable rather than a sign of a deeper problem.
Citi has also maintained a positive view of Delhivery. Its earlier coverage cited a ₹565 target, based on strong parcel volumes and the potential for margins to improve.
Motilal Oswal Keeps ₹570 Target
Motilal Oswal has retained its Buy rating with a ₹570 target price. Its earlier estimates pointed to strong medium-term growth in revenue and EBITDA as Delhivery continues to scale its logistics network.
Jefferies has also remained positive. In May 2026, it raised its target to ₹550 from ₹525 while retaining its Buy rating.
Prabhudas Lilladher Turns More Cautious
Prabhudas Lilladher has taken a more cautious view. The brokerage downgraded Delhivery to Hold in July while keeping its ₹534 target. It had earlier expected sales growth and improving EBITDA margins, but investments in newer businesses remain an area to watch.
What Does Meyka Say About Delhivery Stock?
Meyka’s latest available Delhivery analysis gives the stock a B overall grade. Its technical snapshot showed Delhivery trading above both its 50-day and 200-day moving averages. At the time of that analysis, this pointed to a stronger medium- and long-term price trend.
Meyka’s AI stock analysis tool also projected a +10.33% one-month return in that snapshot. Its longer-term model was more cautious. Such forecasts can change as market conditions and company data change, so they should not be treated as guaranteed returns.
What Investors Should Watch After Q1 FY27?
Can Margins Recover in Q2?
Margin performance will be one of the main areas to track in Q2. Investors will look at fuel costs, employee expenses, and any changes in pricing. A recovery in EBITDA margin would support the more positive broker views on the stock.
Can Volume Growth Create Better Profits?
Delhivery has already delivered strong shipment growth. The next challenge is converting that higher volume into stronger earnings.
Investors should keep an eye on:
- Express Parcel volumes and realisations
- EBITDA margin recovery
- Cost control
- Growth in newer logistics businesses
- Network utilisation
Conclusion
Delhivery’s Q1 FY27 results show a clear gap between revenue growth and profitability. Revenue and shipment volumes increased, but higher costs pushed net profit down 64.9%. Brokers remain broadly positive, although their ratings and targets vary. For the Delhivery share price, margin recovery will be closely watched in the next quarter. If costs ease while volumes remain strong, investor sentiment could improve.
Disclaimer:
The content shared by Meyka AI PTY LTD is for research and informational purposes only. Meyka is not a financial advisory service, and the information provided should not be treated as investment or trading advice.
What brings you to Meyka?
Pick what interests you most and we will get you started.
I'm here to read news
Find more articles like this one
I'm here to research stocks
Ask Meyka Analyst about any stock
I'm here to track my Portfolio
Get daily updates and alerts (coming March 2026)