Delhivery Limited Just Missed Earnings - But Analysts Have Updated Their Models

Delhivery Limited (NSE:DELHIVERY) shareholders are probably feeling a little disappointed, since its shares fell 4.7% to ₹331 in the week after its latest quarterly results. It looks like a pretty bad result, all things considered. Although revenues of ₹22b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 72% to hit ₹0.13 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Delhivery

Taking into account the latest results, the current consensus from Delhivery's 19 analysts is for revenues of ₹91.9b in 2025. This would reflect a reasonable 6.5% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 2,100% to ₹2.32. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹94.5b and earnings per share (EPS) of ₹1.99 in 2025. Although the analysts have lowered their revenue forecasts, they've also made a decent improvement in their earnings per share estimates, which implies there's been something of an uptick in sentiment following the latest results.

There's been no real change to the average price target of ₹488, with the lower revenue and higher earnings forecasts not expected to meaningfully impact the company's valuation over a longer timeframe. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Delhivery, with the most bullish analyst valuing it at ₹680 and the most bearish at ₹393 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Delhivery shareholders.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Delhivery's rate of growth is expected to accelerate meaningfully, with the forecast 13% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 9.7% p.a. over the past three years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 12% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Delhivery is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Delhivery following these results. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. Still, earnings are more important to the intrinsic value of the business. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Delhivery analysts - going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Delhivery you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.