Why Delhivery shares are under pressure after Q1 results?
The stock has gained around 18% year-to-date but remains well below its 52-week high of ₹524, touched in July
Delhivery's shares faced pressure following the logistics company's Q1FY27 earnings report on Saturday. The stock opened at ₹456.40, dipping to ₹452.50 before recovering to ₹479.85. Buy orders accounted for nearly 64% of the total traded quantity, with 93.21 lakh shares valued at ₹436.91 crore changing hands by mid-morning. Delhivery's current P/E ratio of 379.58 highlights thin profitability, a concern raised by brokerages following the earnings miss.
Despite a 27.8% year-on-year revenue increase, adjusted EBITDA margin contracted to 2.6% from 3.3% a year ago, hurt by factors such as wage hikes, fuel costs, and increased supply chain services expenses. While brokerages maintained generally constructive ratings, they trimmed price targets in response to the earnings disappointment.
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