Motilal Oswal Maintains Buy Rating, Targets Delhivery at Rs 570

Delhivery's Strong Express Segment Growth Continues in 3QFY26

Motilal Oswal's latest research report highlights the continued growth of Delhivery's express segment in the third quarter of fiscal year 2026 (3QFY26). The segment recorded a strong 43% year-over-year (YoY) volume growth, driven by festive demand and GST-led consumption. Notably, the average shipment weight declined by approximately 26% YoY, indicating a sharp surge in small parcels.

This growth was also propelled by increased outsourcing from e-commerce majors. The report suggests that the company expects industry consolidation to continue in the express logistics segment. As a result, cash-burning players are likely to exit or rationalize their operations, leading to volume redistribution towards stronger, well-capitalized operators.

Outlook and Recommendations

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Motilal Oswal forecasts a strong growth trajectory for Delhivery over the next few years. The company is expected to report a sales compound annual growth rate (CAGR) of 14%, an EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) CAGR of 44%, and an APAT (Attributable Profit After Tax) CAGR of 52% from fiscal year 2025 to 2028.

Motilal Oswal reiterates its buy rating for Delhivery with a discounted cash flow (DCF)-based target price of INR570.