Delhivery share price falls over 8% post Q2 results. Should you buy, sell or hold?

Delhivery share price slumped over 8% following logistics services operator Q2 results. The logistics services operatora consolidated loss of ₹50.49 crore for the September quarter, compared to a profit of ₹10.20 crore during the same period last year.

However, its total income increased by 14.81% to ₹2,651.53 crore in the reviewed quarter, up from ₹2,309.33 crore in the previous year, according to a regulatory filing from the company.

On a standalone basis, the profit after tax (excluding integration costs related to Ecom Express) for Q2 FY26 was reported at ₹59 crore, in contrast to a PAT of ₹10 crore in the corresponding quarter the previous year, the company indicated in a statement.

For the second quarter, its revenue from services (excluding Ecom Express) rose by 16 percent to ₹2,546 crore, up from ₹2,190 crore in Q2 FY25, according to the statement.

In the express parcel sector, shipment volumes for the reporting quarter increased by 32 percent, reaching 246 million compared to 185 million in the second quarter of the previous year, according to the company's statement, which noted that the Ecom acquisition helped consolidate Delhivery's share of wallet with major clients.

The company also mentioned that alongside clients’ organic growth and robust festive demand, the momentum is carrying on into Q3 FY26.

In the part truckload segment, tonnage rose by 12 percent to 4.77 lakh metric tonnes in Q2 FY26, up from 4.27 lakh metric tonnes in the same quarter of FY25.

The revenue from supply chain services for the quarter was ₹170 crore, down from ₹197 crore in the second quarter of the last fiscal year, while truckload revenue for that quarter was ₹150 crore in Q2 FY26 compared to ₹158 crore in Q2 FY25, as reported by Delhivery.

ICICI Securities said that express parcel volumes increased by 33% year-over-year, accompanied by a 24% year-over-year rise in revenue. The yield for express parcels fell by 3% quarter-over-quarter due to a less favorable mix. PTL tonnage saw a 12% year-over-year growth, even with a 3% year-over-year price hike, demonstrating Delhivery’s pricing strength.

The EBITDA margin for express parcels and PTL missed our expectations by approximately 100 basis points due to an early build-up of festive capacity and a week's delay in festive shipments after the GST rate adjustment. The one-time costs from the Ecom Express acquisition amounted to ₹900 million in Q2FY26. The management anticipates that the total integration expenses will come in around ₹2.1 billion, which is 30% lower than the previous estimate of ₹3 billion.

The brokerage believes that any drop in the stock price presents a compelling buying opportunity, as Delhivery's outlook remains positive due to the increase in underlying demand and the ongoing consolidation in the express parcel sector. The brokerage has a BUY rating for the stock.

JM Financial's report indicated that Delhivery is expected to see 5-6% of its EPS shipments contributing to revenue only in Q3, which translates to over INR 110 million in revenue and over ₹40 million in EBITDA. Additionally, the PTL sector fell short of revenue expectations with a 15.2% year-over-year growth, although management is optimistic about achieving approximately 20% growth for FY26.

The TL, SCS, and Cross-border sectors also exhibited weakness. Management mentioned that the EBITDA guidance for services in FY26 is still on target, while integration costs that occur once are anticipated to be much lower than previously expected. Although we continue to have a positive outlook on Delhivery's position and anticipate a robust recovery in Q3, we are adjusting our estimates to reflect the current trajectory. As a result, the brokerage firm has downgraded their rating to 'ADD' with a target price of ₹530 for September 2026.

(more to come)

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