Brokerages See Up to 19% Upside on Improving Margins, E-commerce Tailwinds and Ecom Express Integration

Delhivery Ltd. continued its strong rally on Thursday, with its shares touching an intraday high of ₹512.55 on the NSE, marking the company's highest trading level since October 2022. The stock has emerged as one of the standout performers in India's logistics sector this year, supported by improving operational performance, favorable industry dynamics, and positive brokerage recommendations.

Leading brokerages, including Motilal Oswal, Choice Broking and JM Financial, have reiterated their bullish stance on the stock, citing stronger earnings visibility, expanding market share, and benefits from the acquisition of Ecom Express. Their target prices range between ₹560 and ₹605, implying an upside potential of nearly 19% from current levels.

Stock Outperforms Broader Market

Delhivery has significantly outperformed benchmark indices over multiple time frames. The stock has gained nearly 8% in the first two trading sessions of July, extending its one-month return to around 16%, compared with a gain of about 3% in the Nifty 500 Index.

On a year-to-date basis, the logistics company's shares have advanced approximately 27%, while the broader Nifty 500 has remained under pressure. Since hitting its 52-week low of ₹374.45 in January 2026, the stock has rebounded nearly 37%, reflecting renewed investor confidence.

Although Delhivery remains below its all-time high of ₹708, achieved in July 2022, the recent rally indicates improving sentiment surrounding the company's long-term growth prospects.

Institutional Exit Fails to Dampen Investor Confidence

Last week, global investment firm Alpha Wave Global exited its entire 1.93% stake in Delhivery through open market transactions valued at approximately ₹665 crore.

The fund sold nearly 14.44 million shares in two separate bulk deals. Despite the sizeable institutional exit, the stock remained resilient and continued to move higher, suggesting that strong buying interest from domestic and institutional investors absorbed the supply without affecting market sentiment.

Market participants viewed the transaction as a portfolio reshuffling rather than a reflection of weakening fundamentals.

Market Consolidation Creates Opportunity

Industry experts believe India's express logistics market is entering a phase of consolidation, where larger and well-capitalized companies are expected to strengthen their competitive position.

As smaller operators face profitability challenges and rising operating costs, established logistics players with nationwide networks, advanced technology platforms, and stronger balance sheets are likely to gain market share.

Delhivery's extensive distribution network, technology-driven operations, and integrated logistics platform position the company to capitalize on these structural changes across the sector.

Ecom Express Acquisition Strengthens Competitive Position

One of the key growth drivers highlighted by analysts is Delhivery's acquisition of Ecom Express, which is expected to significantly expand the company's delivery network and operational scale.

The acquisition is likely to provide several strategic benefits, including:

• Higher shipment volumes across the network

• Improved route density and asset utilization

• Lower operating costs through scale efficiencies

• Enhanced profitability through operating leverage

• Greater market share in India's fast-growing e-commerce logistics segment

Analysts believe the integration could accelerate earnings growth over the next few years while strengthening Delhivery's leadership in express parcel delivery.

Brokerages Maintain Bullish Ratings

Motilal Oswal Sees Strong Earnings Growth

Motilal Oswal has maintained its 'Buy' recommendation with a target price of ₹580.

The brokerage expects Delhivery to deliver:

• 14% revenue CAGR between FY25 and FY28

• 44% EBITDA CAGR

• 54% Profit After Tax CAGR

According to the brokerage, transportation and express parcel businesses are expected to remain the primary growth engines, while improving operating leverage should support margin expansion.

Choice Broking Highlights Strong Technical Setup

Choice Broking has recommended a 'Buy' rating with a target price of ₹560.

The brokerage notes that Delhivery has broken above an important resistance zone and is trading above all major exponential moving averages (EMAs), indicating a strong medium-term uptrend.

Technical analysts believe sustained buying momentum and improving chart patterns make the stock attractive for both positional and momentum investors.

JM Financial Projects Highest Upside

JM Financial remains the most optimistic among the major brokerages, assigning a target price of ₹605, representing an upside potential of nearly 19%.

The brokerage expects:

• Revenue growth of around 25% year-on-year

• Adjusted EBITDA margin to improve to 6.7% by FY27

Higher shipment volumes, better capacity utilization, and cost efficiencies are expected to drive profitability over the medium term.

Industry Tailwinds Continue to Support Growth

India's logistics industry continues to benefit from several long-term structural drivers, including:

• Rapid expansion of e-commerce

• Growth in quick commerce and same-day delivery

• Increasing adoption of organized supply chains

• Rising manufacturing activity

• Government investment in logistics infrastructure

• Digital transformation across freight and transportation services

These trends are expected to increase demand for integrated logistics providers capable of offering end-to-end delivery solutions across the country.

Risks Investors Should Monitor

While the outlook remains positive, investors should keep an eye on several potential risks:

• Successful integration of the Ecom Express acquisition

• Competitive pricing pressure from existing and emerging logistics companies

• Fuel price volatility affecting transportation costs

• Slowdown in consumer demand or e-commerce growth

• Execution risks related to capacity expansion and operational efficiency

Managing these challenges effectively will be critical for sustaining profitability and maintaining market leadership.

Outlook

Delhivery appears well-positioned to benefit from India's expanding logistics ecosystem, improving operational efficiency, and ongoing industry consolidation. The combination of stronger margins, increasing shipment volumes, and strategic acquisitions has reinforced analyst confidence in the company's long-term growth story.

With multiple brokerages maintaining 'Buy' ratings and projecting further upside, Delhivery remains one of the closely watched logistics stocks for investors seeking exposure to India's growing supply chain and e-commerce infrastructure sector.