Is Delhivery at a turning point? Why brokerages are betting on an FY27 breakout

As the logistics giant shakes off its 52-week low, analysts see a clear path to profitability by 2027, driven by operational efficiency and market consolidation.

The Indian logistics sector has been a volatile ride for investors, and few stocks illustrate this better than Delhivery. After touching a disheartening 52-week low of Rs 343 in June last year, the company is showing signs of a decisive recovery. With the delhivery share price currently catching the eye of market watchers, two major brokerages—Motilal Oswal and JM Financial—have issued bullish targets, suggesting that the firm is finally moving from a phase of high capital expenditure to one of sustained margin expansion.

The road to FY27

The optimism surrounding the stock isn't just about technical charts; it’s rooted in the company’s evolving operational architecture. JM Financial has set a target of Rs 605, projecting a 32% upside, while Motilal Oswal remains similarly optimistic with a target of Rs 580. The narrative here is that FY27 will act as a structural inflection point. Analysts expect revenue to grow at a healthy 25% year-on-year, with adjusted EBITDA margins projected to expand by 370 basis points to 6.7%.

While the near term may still feel like a grind as the company absorbs wage inflation and navigates fuel cost fluctuations, the consensus is that the second quarter of FY27 will be the real test of its profitability model. By then, the benefits of operating leverage and the full integration of the Ecom Express network are expected to flow directly into the bottom line.

Why it matters

For the broader Indian logistics business, Delhivery’s trajectory serves as a bellwether. The company is pivoting from aggressive, growth-at-all-costs expansion toward a more disciplined focus on its core Express Parcel and PTL segments. This is a critical transition; investors are no longer rewarding volume for volume's sake, but are instead looking for proof that scale can actually generate cash. The integration of new services like Delhivery Direct and Rapid suggests that the firm is trying to diversify its revenue streams to shield itself from the cyclical nature of the e-commerce sector.

Market sentiment and technicals

Trading at Rs 472.50, the company’s market cap has recovered to roughly Rs 35,371 crore. From a technical standpoint, the stock is showing steady momentum, trading consistently above its short-term and long-term moving averages. With an RSI of 58, the stock is currently in a balanced zone—neither overbought nor oversold—which suggests a degree of stability that was missing throughout much of last year.

However, the path to these aggressive targets isn't guaranteed. The success of this strategy hinges on the company’s ability to pass through costs effectively and keep its network efficiency high. If the integration of its recent acquisitions continues to lower capital intensity as promised, the "strongest years" prediction for 2027 might well hold weight. For now, the charts suggest the worst of the bearish pressure may be firmly in the rearview mirror.