Delhivery Q1 Profit Falls 65%; Why Are Brokerages Still Bullish on the Stock?

Delhivery reported a 65% drop in its first-quarter profit, primarily due to rising wage costs and delayed fuel surcharge pass-throughs. Despite this decline, the company's revenue grew by 28% year-over-year, driven by strong volume momentum across its logistics network.

This mixed performance has led to differing opinions on Dalal Street. While the profit drop is concerning, major brokerages remain bullish, citing the company's ability to maintain growth rates and expand its market share in a competitive sector.

Investors should watch for future updates on cost management and the company's ability to pass on rising operational expenses to customers. The stock's performance will likely depend on whether Delhivery can sustain its growth trajectory while improving its margins in the coming quarters.