Delhivery shares drop 3% on Jefferies downgrade, sees another 8% potential fall- Grow Mudra

Delhivery shares drop 3% on Jefferies downgrade, sees another 8% potential fall

20 Jun , 2025 By : Debdeep Gupta

Shares of Delhivery dropped 3 percent to Rs 343 apiece on June 20 after global brokerage Jefferies downgraded the stock to “underperform” from “buy,” while slashing the target price to Rs 315 from Rs 500. This implies a potential downside of 8 percent from current market levels.

While Delhivery’s stock has traded mostly sideways over the past six months, it has climbed nearly 40 percent from April lows.

Jefferies flagged a key risk from Meesho’s move to bring logistics operations in-house, which may hurt Delhivery’s third-party (3PL) express parcel business.

According to Jefferies, although Delhivery shares rallied 41 percent after its acquisition of Ecom Express—driven by hopes of industry consolidation—the express parcel segment is now expected to see slower growth.

The brokerage forecasted industry volumes to grow at a compound annual growth rate of 10 percent between FY25 and FY30, down from 30 percent between FY20 and FY25. It also expects marketplace share in the 3PL space to shrink to 34 percent by FY28.

Meanwhile, the Competition Commission of India (CCI) approved Delhivery’s proposed acquisition of a majority stake in rival Ecom Express. The Gurugram-based logistics company, which focuses on e-commerce deliveries, reported a revenue of Rs 2,607.3 crore in FY24, compared to Rs 2,548.1 crore in FY23.

Delhivery said the acquisition fits with its goal of becoming India’s most comprehensive logistics platform. The company expects that Ecom Express’ experience in high-volume and secure deliveries—especially in tier-2 and tier-3 cities—will enhance its service footprint and improve efficiency.

On the financial front, Delhivery posted its first full-year net profit in FY25, reporting Rs 162 crore compared to a loss of Rs 249 crore in FY24. For the March quarter, it recorded a net profit of Rs 72.6 crore, reversing a loss of Rs 68.5 crore in the same period last year.

Quarterly revenue rose 5.6 percent year-on-year to Rs 2,191.6 crore, while EBITDA almost tripled to Rs 119 crore from Rs 45.7 crore. Operating margins improved to 5.45 percent from 2.2 percent a year ago.