Delhivery Limited

Industrials — Integrated Freight & Logistics · NSE

₹407.50−₹2.90 (−0.71%)

DalalBaazaar Score

53 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Low

Driven by a very high earnings multiple, which leaves little margin for disappointment, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

The 60-second version of Delhivery Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Delhivery Limited provides supply chain solutions in India.

IndustryIntegrated Freight & Logistics

SectorIndustrials

Employees27,932

Annual revenue₹10,488 Cr

How does it make money?

Turns over ₹10,488 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 27,932 employees supports ₹37.5 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹37.5 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 2.6% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE15.2%

What is the outlook?

15 analysts covering the stock expect revenue to grow about 17.1% and earnings to grow about 73.4% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+17.1%

Est. earnings growth+73.4%

Analysts15

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +45% while net margin moved -110% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+45%

Margin effect-110%

DalalBaazaar Score

53/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 336.8x is demanding — it needs sustained high growth to justify
✗ P/E is 60% above its own historical median of 210.3x — expensive by its own standards

Quality vs. Valuation

Company Quality

56/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

26/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

336.8x

1.3Y Median

210.3x

16 monthly readings · mean 209.1x · range 188.7x–228.1x

Sector Median

88.8x

median of 3 sector peers

⚠️Current valuation is approximately 60% above its 1.3y median of 210.3x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 279% above the peer median of 88.8x.

vs. its own history

Expensive

210.3x median over 16 months · +60%

vs. sector peers

Expensive

88.8x median of 3 peers · +279%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

36.3x

PEG

—

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from -2.5% to 8.3% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from -11.0% to 1.6%.
Return on capital is rising
ROCE has improved from -9.7% to 2.6%.
Very low debt
Debt/Equity of 0.15x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 58% over 3 years, from ₹923 Cr to ₹1,463 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only 2.0x — little room if earnings dip.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -2.5% to 8.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹489 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

The price already assumes success
The stock trades 60% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 10% a year✓ 13.2% CAGR
Latest reported year was 27.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 6%✓ 8.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Interest cover stays above 3x✗ 2.0x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹489 Cr
Profit that never becomes cash eventually stops being profit.
5Debt / EBITDA stays below 2x✓ 1.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.

Investment Checklist

6 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 3 neutral · 4 weak

Market Cap

₹30,543 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

336.8x

Expensive

Expensive — verify against sector peers

P/B Ratio

3.14x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹1.21

Profitable

Profitable on a per-share basis

ROE

1.6%

Weak

Weak capital efficiency

ROCE

2.6%

Weak

Low return on total capital employed

Debt/Equity

0.15x

Low

Conservative leverage

Revenue Growth (YoY)

27.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-65.0%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹489 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

37.3x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

-1.6%

Weak

Thin margins leave little room for error

Net Margin

0.8%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.59

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.18

Defensive

Steadier than the market

52W Range Position

22%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

413.6 / 438.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

41.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹7,225 Cr	₹8,142 Cr	₹8,932 Cr	₹10,488 Cr	+13.2%
EBITDA	-₹179 Cr	₹410 Cr	₹629 Cr	₹875 Cr	—
EBITDA Margin	-2.5%	5.0%	7.0%	8.3%	—
PAT (Net Profit)	-₹1,008 Cr	-₹249 Cr	₹162 Cr	₹153 Cr	—
EPS	₹-14.09	₹-3.4	₹2.14	₹2	—
ROE	-11.0%	-2.7%	1.7%	1.6%	—
ROCE	-9.7%	-1.6%	2.7%	2.6%	—
Total Debt	₹923 Cr	₹1,169 Cr	₹1,422 Cr	₹1,463 Cr	+16.6%
Free Cash Flow	-₹630 Cr	-₹93 Cr	₹84 Cr	₹489 Cr	—

🟢 Revenue has grown at 13.2% a year over 3 years.

🟢 EBITDA has turned positive, from -₹179 Cr to ₹875 Cr.

🟢 EBITDA Margin has risen from -2.5% to 8.3% over 3 years (+10.8 pts).

🟢 PAT (Net Profit) has turned positive, from -₹1,008 Cr to ₹153 Cr.

🟢 EPS has turned positive, from ₹-14.09 to ₹2.

🟢 ROE has risen from -11.0% to 1.6% over 3 years (+12.6 pts).

🟢 ROCE has risen from -9.7% to 2.6% over 3 years (+12.4 pts).

🔴 Total Debt has grown at 16.6% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹630 Cr to ₹489 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹12,777 Cr

Total Liabilities

₹3,090 Cr

Cash & Equivalents

₹242 Cr

Operating Cash Flow

₹911 Cr

Capex

-₹422 Cr

Shareholding (proxy)

Institutional Holding

57.5%

Insider Holding

16.7%

Corporate Actions

Next Earnings

04 Nov 2026

Analyst Consensus

Recommendations

16 Buy · 3 Hold · 1 Sell

Target Price (Mean)

₹549.6

+34.9% vs CMP

Target Range

₹450 – ₹610

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

1 positive4 mixed1 general

Delhivery (NSEI:DELHIVERY) Stock Forecast & Analyst Predictions

Simply Wall Street, 14 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Delhivery shares plunge 4% as net profit tumbles 65% YoY. Why Nuvama still maintains Buy rating

The Economic Times, 10 AugAnalyst view

🟢Potentially positiveAn analyst opinion changing, which moves the price without changing the business.

Delhivery share price target 2026 eyes significant growth on MOFSL bullish view

Alice Blue, 09 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Why Delhivery shares are under pressure after Q1 results?

BusinessLine, 10 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Delhivery trades near 4-year high; Brokerages see up to 19% upside on stock

Business Standard, 02 Jul

Swiggy share price: Down 50% in 1 year; can food delivery stock recover? Should you buy the dip? Check target, stop-loss

Livemint, 17 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongGrowth

MiddlingFinancial Health · Profitability · Risk

WeakBusiness Quality · Valuation

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Interest cover stays above 3x · see Key things to watch ↑