Delhivery Shares Climb as MOSL Reiterates Buy With Rs 580 Target

Motilal Oswal Financial Services held its Buy rating on Delhivery on Monday with a target price of Rs 580, implying about 26 percent upside from Friday’s close of Rs 461.10. Shares of the logistics company climbed 2.78 percent to an intraday high of Rs 473.95 on the NSE, after the brokerage’s note on Express volume growth and PTL margins extended a rally that has now run four sessions.

The brokerage pointed to 73 percent year-on-year volume growth in Delhivery’s Express segment in the fourth quarter of FY26, alongside a structural turnaround in the part-truckload business that has lifted service EBITDA margins from negative 8.5 percent in the first quarter of FY24 to 13.4 percent by the end of FY26.

MOSL’s Note Lands on a Rising Stock

Motilal Oswal Financial Services kept Delhivery on its recommended list at a target price of Rs 580, the brokerage’s stated price objective for the stock. The target implies an upside of about 26 percent from Friday’s closing price of Rs 461.10 on the NSE, according to the note dated June 22. The brokerage’s call repeats a Buy rating it has held on the name through multiple quarterly cycles. The note cites volume strength, margin expansion, and tight cost control as the drivers.

The stock has been moving in step with the brokerage’s view. Delhivery touched an intraday high of Rs 473.95 on Monday before settling near the top of its range. Shares of the company have gained for four consecutive sessions and are up more than 4 percent during the period.

The Sleeper in the Note: PTL’s Structural Turnaround

The headline-grabbing number from MOSL is the 73 percent year-on-year volume growth in Delhivery’s Express segment in Q4 FY26. The deeper story sits inside the part-truckload business.

MOSL noted that Delhivery’s PTL business is witnessing a structural turnaround, with service EBITDA margins improving from negative 8.5 percent in the first quarter of FY24 to 13.4 percent in the fourth quarter of FY26. The brokerage attributed the move to a favourable shift in customer mix towards higher-yielding SME and retail customers, the rationalisation of low-profit contracts, and the expansion of the sales team to strengthen customer acquisition and pricing discipline. The result, the brokerage wrote, was yield expansion across the segment. The shift has played out over nine quarters of steady margin gains.

By Q4 FY26, PTL EBITDA margin reached 13.5 percent on the company’s own segment disclosure, up 270 basis points year-on-year. Management has set a target of 16 to 18 percent steady-state margins across both Express Parcel and PTL within two years. MOSL expects Delhivery to deliver a CAGR of 13 percent in revenue and 33 percent in EBITDA over FY26-28.

Q4 FY26 by the Numbers

Delhivery’s Q4 FY26 print gave MOSL much of what it needed, per the company’s Q4 FY26 segment results and broker target table. Revenue from services surged 30 percent year-on-year to Rs 2,850 crore, with EBITDA jumping 80 percent to Rs 214.2 crore, net profit flat at Rs 72.4 crore, and EBITDA margin expanding from 5.4 percent in Q4 FY25 to 7.5 percent in Q4 FY26.

The segment numbers followed the same direction. Express Parcel revenue grew 46 percent year-on-year to Rs 1,830 crore, with shipments up 73 percent after the Ecom Express integration. PTL revenue rose around 20 percent to Rs 620 crore on tonnage growth of the same size, with PTL EBITDA margin reaching 13.5 percent. Express Parcel EBITDA margin of 18.8 percent was up 290 basis points year-on-year and 70 bps quarter-on-quarter, and the company turned free cash flow positive in FY26, a year ahead of its earlier FY27 guidance.

Ecom Express: The Acquisition Now Showing Up

Much of the Express volume surge in Q4 FY26 traces back to Delhivery’s acquisition of Ecom Express, which closed on July 18, 2025. The Rs 1,369 crore deal folded a rival e-commerce-focused parcel network into Delhivery’s existing operations.

The integration is now visible in the numbers. Express Parcel revenue of Rs 1,830 crore in Q4 FY26 was up 46 percent year-on-year, driven by the Ecom Express integration. Express Parcel EBITDA margin of 18.8 percent was up 290 basis points year-on-year. The Q4 FY26 results are the first full quarter to consolidate the Ecom Express network.

The segment’s 18.8 percent EBITDA margin compares with the company’s overall EBITDA margin of 7.5 percent in Q4 FY26. PTL EBITDA margin of 13.5 percent was up 270 basis points year-on-year on the company’s own segment disclosure.

MOSL said the integration is set to enhance network efficiency and reduce capital intensity over time. The brokerage pointed to new services like Delhivery Direct and Rapid as long-term growth options in on-demand and time-sensitive logistics. ICICI Securities noted that segmental EBITDA disclosure has improved visibility on the health of the underlying core business. That brokerage also expects industry consolidation to continue through FY27.

Where the Street Stands vs the Market Reaction

MOSL is not alone on the bull side. ICICI Securities has a Buy with a Rs 600 target, JM Financial has a Buy with a March 2027 target of Rs 590, and Emkay Global has a Buy at Rs 525. The cluster of targets between Rs 525 and Rs 600 brackets MOSL’s Rs 580 near the upper end of the range, with Emkay valuing the stock at a FY28 EV/EBITDA multiple of 21x at the current market price.

The market has been slower to agree. On May 18, when Delhivery posted its Q4 FY26 numbers, the stock fell 5.8 percent to Rs 447.8 on the BSE despite the strong print. The June 22 rally has since pulled the stock back above Rs 470. Friday’s close of Rs 461.10 sits below the Rs 525 to Rs 600 range set by other brokerages.

Management’s Targets Through FY27

Management has framed the next two years in specific terms. The company expects volume growth of roughly 15 to 20 percent annually across its segments, with steady-state margins of 16 to 18 percent across both Express Parcel and PTL within two years.

Fuel-price risk is hedged through a pass-through mechanism that covers more than 90 percent of contracts across all businesses. The company launched Delhivery International, an economy air parcel service, in December 2025; it is currently live in the US, the UK, Canada and Australia, with 10 new destinations planned by Q2 FY27. Emkay Global said Delhivery’s market leadership, fortified by the Ecom Express acquisition, should disproportionately benefit from industry consolidation. The brokerage pointed to the company carrying Rs 4,200 crore on its balance sheet in FY26 as a supporting factor for valuations.

Free cash flow turned positive in FY26, a year ahead of management’s earlier FY27 guidance. The Ecom Express integration has not yet fully shown its cost synergies in the segment numbers. Express Parcel margins moved up 70 basis points quarter-on-quarter in Q4 FY26, compared with the 290 basis point jump recorded year-on-year.

Frequently Asked Questions

What is Delhivery’s target price according to Motilal Oswal?

Motilal Oswal kept its Buy rating on Delhivery with a target price of Rs 580 per share, implying about 26 percent upside from the previous Friday’s close of Rs 461.10 on the NSE.

Why did Delhivery shares rise on June 22, 2026?

Shares of Delhivery climbed 2.78 percent to an intraday high of Rs 473.95 on the NSE, capping a four-session rally. The trigger was Motilal Oswal reiterating its Buy call with a Rs 580 target price.

What was Delhivery’s Q4 FY26 Express segment performance?

Express Parcel revenue grew 46 percent year-on-year to Rs 1,830 crore in Q4 FY26, with shipments up 73 percent year-on-year after the Ecom Express integration. Segment EBITDA margin reached 18.8 percent, up 290 basis points year-on-year and 70 bps quarter-on-quarter.

What PTL margin turnaround did MOSL highlight?

MOSL noted that Delhivery’s PTL business is witnessing a structural turnaround, with service EBITDA margins improving from negative 8.5 percent in Q1 FY24 to 13.4 percent in Q4 FY26. The brokerage attributed the move to a customer-mix shift towards higher-yielding SME and retail customers and to the rationalisation of low-profit contracts.

What target prices have other brokerages set on Delhivery?

ICICI Securities has a Buy rating with a Rs 600 target, JM Financial has a Buy with a March 2027 target of Rs 590, and Emkay Global has a Buy at Rs 525. All three are Buy ratings, and the targets cluster in a Rs 525 to Rs 600 range.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Stock prices and brokerage targets may change after publication. Investors should consult a qualified financial advisor before making any investment decisions. Figures cited are accurate as of June 22, 2026.