Delhivery Limited

India’s logistics sector is racing ahead; logistics stocks are outpacing the broader market with double-digit gains and a wave of innovation that’s transforming how goods move across the country. As e-commerce booms and infrastructure upgrades accelerate, logistics firms are reporting record growth and profitability. At the heart of this revolution is Delhivery Ltd, which has just clocked its first full year of profits and seen its share price soar 15 per cent on the back of strong results and bold expansion into rapid commerce. With the industry set to reach USD 484 billion by 2029, Delhivery’s turnaround story and sector leadership make it the stock to watch in India’s logistics gold rush

India’s logistics sector has emerged as one of the most dynamic and closely watched spaces in the market over the past month, capturing investor attention with its robust performance and transformative developments. Logistics stocks as a group have outperformed the broader indices, with several names delivering double-digit gains in the last four weeks, as investors bet on the sector’s pivotal role in powering India’s next phase of economic growth. This optimism has been underpinned by strong Quarterly Results across the board, with leading logistics firms reporting healthy revenue growth, margin expansion, and, in some cases, a decisive shift to profitability. The surge in demand for warehousing, last-mile delivery, and technology-driven logistics solutions—particularly from e-commerce, FMCG, and retail segments—has further strengthened the sector’s outlook. The sector is witnessing a structural transformation, with the Indian logistics market projected to grow at a CAGR of 8.8 per cent, reaching USD 484 billion by 2029, driven by e-commerce expansion, infrastructure upgrades, and the government’s Gati Shakti initiative.

Against this vibrant backdrop, one company stands out for its scale, innovation, and recent financial turnaround: Delhivery Ltd. The company’s Q4FY25 results marked a milestone as it achieved its first full year of profitability, posting a net profit of ₹73 crore for the quarter and ₹162 crore for the year—an impressive turnaround from the previous year’s losses. While sequential revenue dipped 7.8 per cent due to seasonal factors, year-on-year growth remained healthy at 6 per cent, and EBITDA margins more than doubled to 5.4 per cent.

The company’s rapid commerce vertical, launched in January 2025, is scaling quickly, targeting ₹100 crore in FY26 revenue and expanding to 50 dark stores across major metros. Delhivery’s share price surged nearly 15 per cent post-results, reflecting renewed investor confidence and recognition of its operational improvements and profitable growth trajectory.

Meanwhile, the broader logistics sector is benefiting from rising demand for warehousing and last-mile delivery solutions, especially from e-commerce and FMCG clients. Institutional investment in modern logistics infrastructure is also accelerating, further strengthening the sector’s fundamentals. Against this dynamic backdrop, Delhivery’s strategic initiatives, financial turnaround, and leadership in digital logistics make it a compelling subject for deeper analysis.

About the compan
Delhivery Limited, established in May 2011 in Delhi and headquartered in Gurgaon, is a leading Indian logistics and supply chain company. The company operates as India's largest fully integrated logistics services provider, offering a comprehensive suite of solutions across the entire supply chain. Its business model serves both business-to-business (B2B) and business-to-consumer (B2C) clients, including manufacturers, merchants, e-commerce enterprises, and individual consumers.

Delhivery’s core offerings encompass express parcel delivery, part truckload (PTL) freight, full truckload (FTL) freight, warehousing, supply chain solutions, and cross-border logistics. The company distinguishes itself through a full-stack approach, an asset-light model, and a strong reliance on technology. Its asset-light strategy involves partnering with third-party providers for fleets and warehouses, enabling scalability while minimising capital investment. Furthermore, Delhivery leverages advanced technologies such as AI, machine learning, and big data analytics to optimise routes, track shipments in real-time, and efficiently manage warehouses, aiming to build an operating system for commerce in India. The company boasts an extensive network covering over 18,833 pin codes across India and serving 220+ countries through strategic partnerships like FedEx.

Revenue Breakdown
Delhivery's revenue streams are diversified across its various logistics segments. The Express Parcel business remains the largest contributor, though its proportion of total revenue has decreased as other segments have grown. For FY22, Express Parcel was 69 per cent of total revenue, PTL 13 per cent, TL 8 per cent, SCS 6 per cent, and Cross Border 4 per cent. In FY23, Express Parcel services constituted 63 per cent of total revenue, PTL freight 16 per cent, Truckload (TL) revenue ₹782 crore, Supply Chain Services (SCS) ₹436 crore, and Cross Border Services ₹296 crore. For FY24, Express Parcel was 62 per cent of total revenue, PTL 19 per cent, TL 7 per cent, SCS 10 per cent, and Cross Border 2 per cent. Revenue is predominantly from India, with international contributions being minor. Looking at FY25, contributions are heavily weighted towards Express Parcel at around 60 per cent. PTL is also a significant segment, contributing about 21 per cent. Supply Chain Services accounts for approximately 10 per cent, with Truckload at 7 per cent, and Cross Border at 2 per cent.

Delhivery's Recent Milestones: A Period of Growth and Consolidation
Delhivery has experienced significant strategic advancements over the past five years. A major highlight was its Initial Public Offering (IPO) in May 2022, raising ₹5,235 crore (USD 620 million) and marking its public listing on the BSE and NSE. This period also saw strategic acquisitions aimed at bolstering its market position. In August 2021, Delhivery acquired Spoton Logistics for ₹1,600 crore (USD 190 million) to enhance its B2B capabilities. This was followed by the acquisition of Californiabased unmanned aircraft system company Transition Robotics Inc. in December 2021, indicating a push towards robotics integration. Most recently, in April 2025, Delhivery signed an agreement to acquire a controlling 99.4 per cent stake in Ecom Express for ₹1,407 crore, a move set to significantly consolidate its presence in the e-commerce logistics sector. Furthermore, a strategic alliance with FedEx in FY21 expanded Delhivery's cross-border services. Financially, Delhivery achieved Adjusted EBITDA profitability in FY22 with a 1 per cent margin, demonstrating improved operational efficiency. Building on this, the company reported its first full year of PAT profitability in FY25, with a net profit of ₹162 crore, signalling a successful turnaround and effective cost control measures.

Business Updates
Delhivery is actively expanding its service portfolio, enhancing operational efficiency, and seizing market opportunities through strategic initiatives. In January 2025, Delhivery launched 'Rapid Commerce', a 2-hour delivery service for brands, aiming to meet evolving customer expectations for faster delivery. This service is currently active in three cities with 18 dark stores, with plans to expand to 50 dark stores across the top eight cities by year-end. The company has also forged partnerships with major players like HPCL for panIndia lubricant distribution (January 2025), SUGAR Cosmetics for B2B shipments (May 2024), and Havells India for integrated warehousing and transportation solutions (August 2023). These collaborations expand its footprint in various industries.

Competitive Landscape of the Indian Logistics Market
The Indian logistics market is vast and intensely competitive, characterised by a blend of established domestic players, global logistics giants, and e-commerce-focused providers. Key Indian competitors include Blue Dart Express Ltd., known for its premium air express and integrated transportation services with extensive network coverage, and Allcargo Gati Ltd., offering express distribution and supply chain management across a wide pin code reach. Xpressbees and Ekart Logistics (Flipkart's in-house arm, now also serving other businesses, recently joined ONDC) are prominent e-commerce-focused unicorns. Other significant domestic players are Ecom Express (recently acquired by Delhivery), DTDC, and Safexpress, known for their B2B focus. Globally, DHL, FedEx, and Aramex maintain a strong presence in India, providing comprehensive express, e-commerce, and supply chain solutions.

Industry Update and Growth Triggers in Indian Logistics
The Indian logistics sector is experiencing significant shifts, primarily driven by a booming e-commerce market projected to reach USD 120 billion by 2026. This fuels demand for last-mile and reverse logistics, with increased penetration in Tier 2 and Tier 3 cities. Concurrently, there's a structural shift towards organised logistics players and consolidation, benefiting integrated, tech-enabled providers like Delhivery. The rise of D2C (Direct to Customer) brands also represents a major demand driver, with companies seeking comprehensive third-party logistics (3PL) partners. The emergence of quick commerce (under 60-minute delivery) is reshaping consumer expectations, demanding faster turnarounds. Seasonality impacts segments like Supply Chain Services and part truckload (PTL), with stronger Q1 performance expected.

Financial Performance
Delhivery Limited delivered a strong operational and financial performance in Q4FY25, marking a significant milestone in its journey towards sustainable profitability. The company reported consolidated net sales of ₹2,191.57 crore, reflecting a 5.6 per cent year-on-year growth despite a sequential decline of 7.85 per cent from the seasonally strong Q3. This moderation was expected, as Q3 is typically the peak quarter for the express parcel business. Total expenditure decreased by 8.94 per cent quarter-on-quarter to ₹2,072.49 crore, reflecting continued cost optimisation and improved operational efficiency.

Delhivery’s profitability metrics saw robust improvement. PBIDT (excluding other income) surged 16.26 per cent sequentially and 159.52 per cent year-on-year to ₹119.07 crore, with the PBIDT margin (excluding OI) expanding to 5.43 per cent from 4.31 per cent in Q3FY25 and 2.21 per cent in Q4FY24. Including other income, the PBIDT margin improved to 10.54 per cent. Most notably, profit after tax (PAT) jumped 104.45 per cent quarter-on-quarter to ₹55.64 crore, a sharp turnaround from a loss of ₹74.74 crore in the same period last year. The PAT margin improved to 2.54 per cent, reflecting the company’s successful execution of cost control measures and margin expansion initiatives. Adjusted EPS came in at ₹0.97, up 185 per cent sequentially.

Operationally, Delhivery continued to expand its customer base and scale its core businesses, with strong growth in the part truckload segment and stable performance in express parcels. The company’s recent announcement to acquire a controlling stake in Ecom Express further strengthens its market position and signals an aggressive push towards sector consolidation. With a healthy balance sheet, improving margins, and strategic growth initiatives, Delhivery is well-positioned for continued outperformance in the evolving Indian logistics landscape.

Valuation and Outlook
As of June 2025, Delhivery Limited is valued at approximately ₹27,385 crore, reflecting its position as a leading player in India’s logistics sector. The current valuation appears elevated, with a price-to-earnings (P/E) ratio above 160x and the stock trading at nearly 2.9 times its book value. The company's PEG ratio is 7.98, which is also high. The company’s Q4FY25 results reinforce this premium. The standout driver was the Part Truck Load (PTL) segment, where EBITDA margin jumped ~700 bps QoQ to 10.8 per cent on the back of contract renegotiations, scale benefits, and productivity gains, while tonnage grew 11.2 per cent sequentially. The express parcel business, Delhivery’s largest vertical, maintained stable volumes and improved yields, with service-level EBITDA margin rising to 15.9 per cent. The company’s management has guided for further margin expansion and expects to retain at least 30 per cent of Ecom Express volumes post-acquisition, supporting future growth. Capex is set to moderate, and integration costs are transparently communicated, which should reassure investors about sustainable profitability.

Delhivery’s business model is built on technology-driven logistics, diversified across express parcels, PTL, supply chain, and cross-border services—serving over 44,000 customers. Its PTL segment has become the second-largest by revenue, with management confident of sustaining double-digit growth and margin improvement through FY26 and FY27. The rapid scale-up of dark stores and emerging B2B opportunities in rapid commerce further diversify its growth levers. The outlook is robust: sector consolidation, easing pricing pressure, and synergies from the Ecom Express acquisition are expected to drive market share gains and margin expansion. With the Indian logistics sector on a structural uptrend, Delhivery’s improving profitability, disciplined capex, and clear integration strategy justify its current valuation and support a positive long-term investment case. Given the recent rally in the stock in the last one month, the risk to invest in this high-growth new-age company has increased.

Hence, we give a HOLD recommendation. However, if you are a high-risk investor with a risk-taking appetite, you may add this stock with a small allocation for a long-term investment horizon.