Prabhudas Lilladher Recommends 'BUY' on Delhivery, Sets Target at Rs 516

• Prabhudas Lilladher upgrades Delhivery to 'BUY' from 'ACCUMULATE' with a target price of Rs 516.
• The valuation is rolled forward to FY28E, valuing the stock at an EV/EBITDA multiple of 35x.
• Delhivery's operating performance was in line with estimates, with an EBITDA margin of 5.2%, adjusting for Rs 350mn integration cost from E-com express acquisition.
• B2C segment's service EBITDA margin reached 18% after five quarters, while PTL division's service EBITDA margin hit an all-time high of 11.1%.
• Sales CAGR is expected to be 15% over the next three years, with EBITDA margins projected at 6.1%, 9.6%, and 10.2% for FY26E, FY27E, and FY28E respectively.