Delhivery Shares Slip 4% To Hit Fresh 52-Week Low

Shares of Delhivery continued their downward spiral for the third straight day and slipped 4% to hit a fresh 52-week low at INR 308.70 apiece during the intraday trading on the BSE on Monday (January 27).

The stock has declined nearly 7% in the last five trading sessions and over 27% in the past 12 months.

At 2:57 PM, the market capitalisation of the logistics major stood at INR 22,954.30 Cr (around $2.65 Bn).

The decline in Delhivery’s share price coincided with the company’s announcement that it has partnered with state-backed oil marketing company Hindustan Petroleum Corporation Ltd (HPCL) for pan-India lubricant distribution.

Through the partnership, HPCL aims to leverage Delhivery’s robust part truck load (PTL) logistics infrastructure to strengthen its supply chain performance and expand its reach.

Commenting on the development, Suraj Saharan, cofounder of Delhivery, said that the deal highlights the company’s capability to deliver efficient enterprise-grade outcomes and handle large-volume logistics with precision.

HPCL has a 20% market share in India’s petroleum refining market. It runs two refineries in Mumbai and Visakhapatnam, along with a lube refinery in the country’s financial capital. The state-owned oil major has a strong presence in India with 23K retail outlets and a network of 6,400 LPG distributors.

The partnership comes at a time when Delhivery is looking to branch out beyond ecommerce orders amid growing demand in the quick commerce space with players like Blinkit, Zepto and Swiggy Instamart fuelling this trend.

Recently, Delhivery launched a pilot of a two-hour delivery service in Bengaluru to address the needs of brands across categories such as beauty and personal care, apparel and fashion.

During a post-earnings call for Q2 FY25, Delhivery founder and CEO Sahil Barua said that the quick commerce model doesn’t really work for logistics players in terms of unit economics.

In a recent research report, Prabhudas Lilladher said that Delhivery’s B2C express volume growth has come under pressure in the last three quarters owing to rising insourcing from Meesho.

“Near-term growth headwinds are likely to persist even if we assume Meesho’s insourcing exercise has stabilised given the slowdown in overall consumption space and rising competitive threat from quick commerce,” it added.

The brokerage has a ‘hold’ rating on the stock with a target price of INR 361.

Delhivery posted a consolidated net profit of INR 10.2 Cr in Q2 FY25 against a loss of INR 102.9 Cr in the same quarter last year. Revenue from services rose 13% year-on-year to INR 2,189.7 Cr in the September quarter.