Results: Delhivery Limited Confounded Analyst Expectations With A Surprise Profit

It's been a good week for Delhivery Limited (NSE:DELHIVERY) shareholders, because the company has just released its latest quarterly results, and the shares gained 6.6% to ₹456. Delhivery beat expectations by 2.6% with revenues of ₹22b. It also surprised on the earnings front, with an unexpected statutory profit of ₹0.15 per share a nice improvement on the losses that the analysts forecast. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Delhivery

Following the latest results, Delhivery's 22 analysts are now forecasting revenues of ₹99.9b in 2025. This would be a substantial 26% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Delhivery forecast to report a statutory profit of ₹0.87 per share. Yet prior to the latest earnings, the analysts had been forecasting revenues of ₹101.2b and losses of ₹0.51 per share in 2025. Although we saw no serious change to the revenue outlook, the analysts have definitely increased their earnings estimates, estimating a profit next year, compared to previous forecasts of a loss. So it seems like the consensus has become substantially more bullish on Delhivery.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 13% to ₹516. 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. Currently, the most bullish analyst values Delhivery at ₹665 per share, while the most bearish prices it at ₹325. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Delhivery'shistorical trends, as the 20% annualised revenue growth to the end of 2025 is roughly in line with the 24% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 13% annually. So although Delhivery is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts now expect Delhivery to become profitable next year, compared to previous expectations that it would report a loss. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Delhivery. Long-term earnings power is much more important than next year's profits. We have forecasts for Delhivery going out to 2026, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.