Delhivery shares dive 9% post Q2 earnings; JM Financial downgrades rating to 'Add'

Shares of Delhivery Ltd slumped 8.58 per cent in Thursday's trade to hit a low of Rs 443.35 after the logistics company announced its July-September quarter (Q2 FY26) results.

Brokerage JM Financial said Delhivery reported revenue of Rs 2,560 crore, up 16.9 per cent year-on-year (YoY), with an adjusted EBITDA margin of 3.3 per cent (excluding e-commerce integration costs), which remained sequentially flat.

The domestic brokerage noted that the performance came in below expectations, primarily due to back-ended demand linked to GST-related factors.

According to JM Financial, around 5–6 per cent of Delhivery's Express Parcel shipments are likely to be recognised as revenue only in the third quarter (Q3 FY26). This could add over Rs 11 crore in revenue and Rs 4 crore in EBITDA in the upcoming quarter.

The Part Truckload (PTL) segment also missed revenue estimates, growing 15.2 per cent YoY, against expectations of stronger performance. However, management maintained confidence in achieving around 20 per cent growth for FY26.

Other verticals -- including Truckload (TL), Supply Chain Services (SCS) and Cross-Border businesses -- also showed weakness during the quarter.

JM Financial said management continues to guide that service EBITDA for FY26 remains on track and one-time integration costs are now expected to be significantly lower than previously anticipated. Despite short-term challenges, the brokerage remains positive on Delhivery's long-term positioning in the logistics sector and expects a recovery in Q3.

However, to reflect the current performance trajectory, JM Financial lowered its estimates and downgraded the stock from 'Buy' to 'Add', assigning a target price of Rs 530 by September 2026.