SBI Mutual Fund trimmed its stake in Delhivery to 5.69% on December 22 by offloading 18.18 lakh shares worth approximately INR 74.45 crore at the BSE closing price of INR 409.20, down 0.24% from its prior 5.93% holding. The sale, disclosed under SEBI’s Substantial Acquisition of Shares and Takeovers regulations, continues a two-year pattern of gradual reduction—from 7.91% in April 2023 and 6.41% via the SBI Equity Hybrid Fund as of September 2025 signaling portfolio rebalancing amid the logistics firm’s integration challenges.
Stake Sale Context Amid Q2 Volatility
Delhivery shares dipped 1.2% to INR 406.85 post-sale but remain up ~18% YTD, buoyed by the July 2025 INR 1,407 crore ($169M) acquisition of rival Ecom Express, which expanded market share to 27-30%. However, Q2 FY26 (Jul-Sep) marked a reversal: net loss of INR 50.5 crore versus INR 10.2 crore profit YoY (and Q1’s INR 91.1 crore profit), driven by INR 90 crore one-time Ecom integration costs (within INR 300 crore guidance).
SBI’s move aligns with other funds’ caution on near-term profitability risks, though analysts see long-term upside from consolidation.
Detailed Q2 FY26 Financial Breakdown
Delhivery’s results reflect growth pains post-Ecom:
| Metric | Q2 FY26 | Q2 FY25 | YoY Change | Q1 FY26 | QoQ Change | Notes |
|---|---|---|---|---|---|---|
| Revenue from Operations | INR 2,559 Cr | INR 2,190 Cr | +17% | INR 2,294 Cr | +12% | Ex-Ecom services: INR 2,546 Cr (+16% YoY) |
| Total Expenses | INR 2,708 Cr | N/A | +18% YoY | N/A | N/A | Freight: 68% (INR 1,843 Cr); Employee: INR 426 Cr |
| EBITDA | INR 150 Cr (5.9%) | INR 57 Cr (2.6%) | +162% | N/A | N/A | Ex-integration costs; H1: INR 299 Cr (6.2%) |
| PAT | -INR 50.5 Cr | +INR 10.2 Cr | Loss | +INR 91.1 Cr | Loss | Ex-costs: +INR 59 Cr PAT (2.2%) |
| Express Volumes | 246 Mn shipments | 185 Mn | +32% | N/A | N/A | Festive peak: 7.2 Mn orders/day |
| PTL Tonnage | 477K MT | 427K MT | +12% | N/A | N/A | Revenue: INR 546 Cr (+15%) |
H1 FY26 Snapshot (ex-Ecom costs): Revenue INR 4,840 Cr (+11% YoY); EBITDA INR 299 Cr (+94%); PAT INR 150 Cr (+131%). Integration nears completion: non-express wind-down done, 7 Ecom facilities retained.
Ecom Express Acquisition Impact
Closed July 18 at INR 1,407 Cr cash (99.44% stake), the deal boosts last-mile dominance but triggered Q2 pain:
- Costs: INR 90 Cr Q2 (H1 ~INR 190 Cr); full-year INR 300 Cr cap.
- Synergies: Network rationalized; revenue transition 90% complete.
- Volumes: Express up 32% YoY, capturing client consolidation.
Pre-acquisition, Delhivery flagged Ecom’s DRHP as “misleading”; distressed sale valued Ecom at ~INR 1,500 Cr vs INR 7,300 Cr 2023 peak.
Share Performance: YTD Gains vs Recent Pressure
- Current: INR 406.85 (-1.2% Dec 23); 52-week high INR 455.80 (Aug post-Q1).
- YTD: +18%; 1-year +12%; 3-year -25%.
- Valuation: P/E -114 (losses); EV/EBITDA 25x; Market Cap ~INR 30,000 Cr.
- Peers Comparison (Dec 23):
| Company | Price (INR) | YTD % | P/E | EBITDA Margin Q2 |
|---|---|---|---|---|
| Delhivery | 407 | +18% | -114 | 5.9% |
| Blue Dart | 7,800 | +5% | 55 | 10.2% |
| DTDC (unlisted) | N/A | N/A | N/A | ~8% |
| Ecom Express (pre-deal) | N/A | N/A | -20 | 4.5% |
Delhivery trades at premium EV/S (3.5x FY26E) on volume leadership but lags profitability peers.
Strategic Bets Amid Integration
Diversification ramps up:
- Delhivery Fintech (Nov 2025): Credit for truckers/MSMEs.
- Intl Expansion: UK/UAE subsidiaries via Singapore arm.
- Rapid/Direct: 20 stores (3 cities); B2B NCR live; 25 FY26 target.
Q3 guidance: Festive momentum continues; integration tailwinds emerge 2026.
Investor Takeaway: Buy Dip or Wait?
SBI’s trim reflects short-term noise (Q2 loss), but core metrics shine: 32% volumes, 162% EBITDA growth ex-costs. Ecom synergies unlock FY27 PAT positivity; YTD gains validate consolidation thesis. Risks: Integration overruns, competition (Xpressbees, Ecom holdouts). Target: INR 450-500 (15-25% upside) per analysts post-Q3.
Read this: Delhivery Q2 FY26 Results Are Out: Reports Rs 50 Crore Loss With 17% Revenue Growth
