Delhivery stock: Motilal Oswal targets Rs 570 in 2026

What Motilal Oswal is saying on Delhivery

Motilal Oswal has reiterated a BUY view on logistics company Delhivery in multiple notes during FY26, with target prices ranging from Rs 540 to Rs 580. In a research report dated April 23, 2026, the brokerage assigned a DCF-based target price of Rs 570. In an earlier note dated March 05, 2026, Motilal Oswal maintained a BUY and set a target of Rs 580.

The brokerage’s positive stance is anchored in a combination of volume-led growth in express parcel, expectations of consolidation within express logistics, and improving profitability metrics that it says are emerging as the company scales. The reports also point to shifting shipment mix, with smaller parcels rising, and to the role of outsourcing by large e-commerce players.

Targets have moved across reports

Motilal Oswal’s published targets on Delhivery have not been static, reflecting updates across different report dates and contexts. Apart from the Rs 570 and Rs 580 targets, another Motilal Oswal note referenced a revised target of Rs 540. Separately, following a June-quarter update cited in the provided text, Motilal Oswal Financial Services raised its target price to Rs 500 from Rs 480, while retaining a Buy rating.

In another initiation note, Motilal Oswal valued Delhivery at Rs 480 using a DCF approach with WACC of 12% and terminal growth rate of 5%. That note also cited an entry zone around Rs 409, with support levels of Rs 370 and Rs 448.

Express segment volumes: what changed in 3QFY26

A key data point highlighted in the material is Delhivery’s express segment performance in 3QFY26. The express segment recorded 43% year-on-year volume growth in 3QFY26, attributed to festive demand and GST-led consumption. At the same time, average shipment weight declined by around 26% year-on-year, pointing to a sharper rise in small parcels.

The reports also state that the surge in volumes was propelled by increased outsourcing from e-commerce majors. This matters because express parcel economics can be sensitive to density, delivery efficiency, and network utilisation. A rising share of smaller parcels can change routing, handling, and last-mile cost dynamics, but the brokerage notes the overall demand environment as supportive.

Consolidation thesis in express logistics

Motilal Oswal expects consolidation to continue in the express logistics industry. The brokerage’s view, as cited, is that cash-burning players are likely to exit or rationalize operations. It expects that to lead to volume redistribution toward stronger, well-capitalized operators.

This thesis is central to the BUY view because it frames volume growth not only as a cyclical festive effect, but also as a structural outcome of market share shifts. The material does not quantify expected market share gains, but it explicitly links consolidation to stronger operators gaining redistributed volumes.

Quarterly snapshot: 2QFY26 revenue and integration costs

Another report excerpt provides a financial snapshot for 2QFY26. Delhivery posted a 17% year-on-year rise in revenue to Rs 2,560 crore in 2QFY26, described as “in line”. During the quarter, the company recognized Rs 90 crore of costs related to Ecom Express integration.

EBITDA excluding Ecom Express integration costs stood at Rs 150 crore, compared with an estimate of Rs 160 crore. The EBITDA margin excluding those costs was 5.9%, compared with an estimate of 6.5%. The acquisition was formally completed in July 2025, according to the provided text.

Profitability commentary: adjusted PAT positive in FY25

Motilal Oswal Financial Services has also highlighted a profitability milestone: Delhivery turned adjusted profit after tax (APAT) positive in FY25. The same narrative links the improvement to rising shipment volumes and healthy margins within core transportation.

Separately, the provided text states that Delhivery reported a 68.5% year-on-year rise in net profit to Rs 91 crore for the June quarter, driven by tighter operations and stable revenues. This is presented as a near-term operating outcome that coincided with brokerage target revisions.

Forecasts: CAGR expectations over FY25 to FY28

Across the excerpts, Motilal Oswal’s growth expectations are expressed as CAGRs over FY25 to FY28, with slight variations by note. One outlook projects sales, EBITDA and APAT CAGRs of 14%, 44%, and 52%, respectively. Another note cites 14%, 44%, and 54% for sales, EBITDA and APAT. Another excerpt references revenue, EBITDA, and APAT CAGRs of 15%, 38%, and 54%.

A separate summary also mentions Motilal Oswal projecting a 15% sales CAGR and a 52% APAT CAGR over FY25 to FY28. The common thread is that EBITDA and APAT are expected to grow faster than revenue, consistent with an operating leverage and margin expansion narrative.

Valuation framing: DCF targets and assumptions

The targets cited by Motilal Oswal are explicitly described as DCF-based. In the initiation note that set a Rs 480 target, the brokerage used a WACC of 12% and terminal growth rate of 5%. Other targets referenced in the provided text include Rs 540, Rs 570 and Rs 580, all described as DCF-based target prices.

The material also reports specific market prices at different points: Rs 409 (CMP in the initiation note), around Rs 429 (with a Rs 580 target and about 35% upside), and Rs 468.65 (when shares traded 0.33% higher around 9:20 am). These reference points help contextualise implied upside but are tied to their respective timestamps.

Key numbers at a glance

Timeline of Motilal Oswal targets mentioned

What investors will track next

The material points investors to execution markers rather than broad themes. Key watch items include the pace of volume growth in express parcel, evidence that consolidation is translating into sustainable volumes for well-capitalised operators, and the progress of acquisition integration given the explicit integration costs recognised in 2QFY26.

Also important are quarterly margins and profitability, since the brokerage’s FY25 to FY28 forecasts imply that EBITDA and APAT should scale faster than revenue. Future updates from the company and brokerages are likely to be driven by quarterly shipment trends, integration progress following the July 2025 completion, and any changes in DCF assumptions underpinning the target prices.