Delhivery IPO Review

About the Company

Order something online and it arrives in a few days, often in a grey and red Delhivery van. Behind most of India's e-commerce deliveries sits a logistics network most people never think about and Delhivery runs the biggest one.

Started in 2011 in Gurugram, Delhivery is India's largest fully integrated logistics company by revenue. It moves parcels and freight across the country express parcel delivery for e-commerce, part-truckload and full-truckload freight, warehousing, supply-chain services and cross-border shipping. Its network reaches over 18,850 pin codes.

Its customers are businesses, not you directly — e-commerce platforms like Meesho and Amazon, brands, and manufacturers that need goods moved and stored. It makes money on shipping volumes, freight, warehousing and software. In 2025 it bought its main rival Ecom Express, pushing its share of express logistics to roughly 27–30%. It's a tech heavy operation, building its own routing, automation and AI tools. Track its live price and listing data on the IPO GMP Live homepage.

Financial Snapshot

Here's the change that matters since the IPO. Back then, Delhivery was deep in the red losses of ₹269 crore in FY20, ₹416 crore in FY21, and ₹891 crore in FY22. The market doubted it would ever make money.

It now does. Delhivery turned profitable in FY25 with a net profit of ₹162 crore, and held onto profit in FY26 at ₹153 crore on revenue of ₹10,508 crore, up 18%. It also turned free-cash-flow positive in FY26. After years of burning cash, that's a genuine milestone.

But two things keep me cautious. First, the profit is tiny ₹153 crore on over ₹10,500 crore of revenue is a net margin of around 1.5%, and FY26 profit actually dipped slightly because of costs from absorbing Ecom Express. Second, the valuation. At a market cap near ₹35,700 crore against ₹153 crore of profit, the stock trades at roughly 100 times earnings.

That's the tension. The business is finally profitable and dominant after buying its biggest rival, but you're paying an enormous multiple for thin profits. The market is betting margins expand sharply from here and that has to actually happen to justify the price.

Strengths

• It finally makes money. After years of heavy losses, Delhivery posted net profit of ₹162 crore in FY25 and ₹153 crore in FY26, and turned free-cash-flow positive. That shift from cash-burner to profit-maker is the single biggest change in the investment case.
• It bought its biggest rival. The ₹1,369 crore acquisition of Ecom Express lifted Delhivery's share of express logistics to roughly 27–30%, removing a major competitor and improving pricing power across the network.
• The network is a real moat. Covering over 18,850 pin codes with express, freight, warehousing and supply-chain services under one roof, Delhivery has scale that a new entrant simply can't build quickly.
• Margins are expanding. Q4 FY26 EBITDA margin reached 8.1%, up from 5.4% a year earlier, helped by consolidation and AI-led tools like Delhivery Maps. Brokerage Macquarie rates it 'Outperform' with a ₹570 target.

Risks

• The valuation is extreme. At roughly 100 times earnings for ₹153 crore of profit, the stock is priced for years of strong margin expansion. If that doesn't come through, a multiple this high has a long way to fall.
• Profits are thin and just dipped. A net margin near 1.5% leaves little buffer, and FY26 profit actually fell slightly on Ecom Express integration costs. Analysts see sustainable, scaled profitability only around FY28 so the wait could be long.
• IPO investors have made nothing. The stock listed at ₹495 in 2022 and trades around ₹472 today still below the ₹487 issue price four years on. This has been a frustrating long-term hold.
• Client concentration is a worry. Meesho has been shifting volumes to Flipkart's Ekart, and dependence on a few large e-commerce clients means losing one can dent revenue. Pricing pressure in logistics is a constant.

Should You Buy, Hold, or Sell?

The IPO is four years behind us, and long-term holders have little to show the stock at ~₹472 is still below its ₹487 issue price. This is now a call on a newly profitable but richly valued logistics leader.

Conservative investors — the roughly 100x earnings multiple is too rich for comfort. The business is improving, but at this price there's no cushion if margin expansion disappoints.

Moderate investors — hold if you own it; for new money, wait for profits to grow into the valuation or for a dip toward the ₹355 lows.

Aggressive investors — there's a real growth case post-Ecom, with brokerages targeting ₹570. If margins expand as hoped, the stock can re-rate but you're paying up front for that.

Honest take: a genuine turnaround and a dominant network, priced as if the hard part is already done the business is winning, but the stock leaves little room for error.

IPO Objects of the Issue

The fresh issue raised ₹4,000 crore. The ₹1,235 crore offer-for-sale went to selling shareholders (early backers such as SoftBank and Carlyle), so the company received nothing from that part.

Contact Details

Delhivery Ltd. Plot 5, Sector 44, Gurugram, Haryana – 122003 🌐 www.delhivery.com

IPO Registrar — MUFG Intime India Pvt. Ltd. (formerly Link Intime India Pvt. Ltd.) 📞 +91-22-4918 6270 🌐 www.in.mpms.mufg.com

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This page is not investment advice. GMP is indicative only. Please consult a SEBI-registered financial advisor before investing.