Delhivery shares rose nearly 3 percent on Monday after brokerage firm Motilal Oswal Financial Services (MOSL) projected up to 26 percent upside in the stock, citing strong volume growth and cost control.
The stock climbed 2.78 percent to an intraday high of Rs 473.95 per share on the NSE. Shares of the company have gained for four consecutive sessions and are up more than 4 percent during the period.
MOSL has maintained a 'Buy' rating on the stock with a target price of Rs 580 per share, implying an upside of about 26 percent from Friday's closing price of Rs 461.10.
According to the brokerage, Delhivery's Express segment reported 73 percent year-on-year volume growth in the fourth quarter of FY26, including the contribution from the Ecom Express acquisition, despite a challenging operating environment due to the West Asia crisis and the usual moderation seen after the festive-led third quarter.
The brokerage said the growth was supported by healthy consumption-driven demand, higher outsourcing by customers and continued momentum from large e-commerce players.
It added that margins remained strong, aided by robust volumes and tight cost control measures.
MOSL also noted that the company's PTL business is witnessing a structural turnaround, with service EBITDA margins improving from negative 8.5 percent in the first quarter of FY24 to 13.4 percent in the fourth quarter of FY26.
The improvement was driven by a favourable shift in customer mix towards higher-yielding SME and retail customers, rationalisation of low-profit contracts, and expansion of the sales team to strengthen customer acquisition and pricing discipline, resulting in yield expansion, the brokerage said.