Delhivery Limited Just Missed EPS By 42%: Here's What Analysts Think Will Happen Next
Investors in Delhivery Limited (NSE:DELHIVERY) had a good week, as its shares rose 2.9% to close at ₹386 following the release of its quarterly results. Statutory earnings per share fell badly short of expectations, coming in at ₹0.53, some 42% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at ₹31b. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the current consensus from Delhivery's 18 analysts is for revenues of ₹127.9b in 2027. This would reflect a meaningful 9.7% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 98% to ₹4.87. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹126.6b and earnings per share (EPS) of ₹5.82 in 2027. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a real cut to EPS estimates.
View our latest analysis for Delhivery
The consensus price target held steady at ₹542, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 ₹610 per share, while the most bearish prices it at ₹450. This is a very narrow spread of estimates, implying either that Delhivery is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Delhivery's past performance and to peers in the same industry. The analysts are definitely expecting Delhivery's growth to accelerate, with the forecast 20% annualised growth to the end of 2027 ranking favourably alongside historical growth of 11% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 15% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Delhivery is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at ₹542, with the latest estimates not enough to have an impact on their price targets.
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. At Simply Wall St, we have a full range of analyst estimates for Delhivery going out to 2029, and you can see them free on our platform here..
It is also worth noting that we have found 1 warning sign for Delhivery that you need to take into consideration.
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