Delhivery shares drop to 52-week low despite 114% Q3 profit surge—Here’s why

Delhivery Ltd’s shares hit a fresh 52-week low on Monday, despite a significant rise in Q3 profits. The stock dropped 5.29%, closing at Rs 300, down from Rs 316.75 on Friday. The market capitalization of the logistics firm fell to Rs 22,920 crore. Earlier, Delhivery’s stock had peaked at Rs 485 on February 27, 2024. On Monday, 1.74 lakh shares were traded, generating a turnover of Rs 5.38 crore on the BSE.

Technically, Delhivery’s relative strength index (RSI) stands at 39.1, indicating that the stock isn’t in either the oversold or overbought zone. With a beta of 1, the stock shows average volatility for the year. Moreover, Delhivery’s shares are trading below all key moving averages—5-day, 10-day, 20-day, 50-day, 100-day, 150-day, and 200-day.

Despite the stock slump, Delhivery reported a stellar 114% jump in Q3 profit, reaching Rs 25 crore, compared to Rs 11.7 crore in Q3 of the previous fiscal year. Revenue from operations also rose 8.4%, hitting Rs 2,378.3 crore in Q3FY25, up from Rs 2,194.4 crore in Q3FY24. However, its operating EBITDA fell 6.2% to Rs 102.4 crore, from Rs 109.2 crore in the same quarter last year. The EBITDA margin dropped to 4.3% in Q3, compared to 5% in the previous year.

The Express Parcel segment performed well, with revenue climbing 3% to Rs 1,488 crore. Additionally, the number of Express Parcel shipments increased by 2%, reaching 206 million, up from 201 million in Q3FY24.

However, analysts at Nuvama pointed out that Delhivery’s performance in Q3FY25 fell short of expectations. Industry headwinds, along with a slowdown in e-commerce volumes, contributed to the weaker-than-anticipated results. Nuvama revised its price target for Delhivery, lowering it to Rs 380 from Rs 400.

The brokerage also reduced its earnings projections for FY25E–27E by up to 39%, citing the disappointing Q3 performance. Despite this, Nuvama maintained a “BUY” rating, forecasting a revenue and EBITDA compound annual growth rate (CAGR) of 14% and 18%, respectively, from FY24–27E.

Delhivery continues to be a key player in logistics, offering services such as express parcel delivery, freight transport (both PTL and TL), warehousing, supply chain solutions, and cross-border freight and software services.