The share price of Delhivery Ltd, a logistics company, was trading in the green and 4% higher, hitting an intraday high of Rs 271.30 on Monday, 7 April 2025, in spite of the overall market collapse. 

The Delhivery share price increased after the firm declared that it had finalised a deal to buy a majority share in Ecom Express Limited for approximately Rs 1,400 crore in cash from its shareholders.

Ecom Express provides complete logistics solutions driven by technology to the Indian retail and e-commerce industries. The company was established in 2012 and provides first-mile pickup, processing, network operation, last-mile delivery, reverse logistics, and returns management under its primary offering, Ecom Express Services. 

Sahil Barua, MD and CEO of Delhivery, said: “We believe this acquisition will enable us to service customers of both companies better through continued bold investments in infrastructure, technology, network and people. The founders and management of Ecom Express have established a high-quality network and team, creating a strong foundation to integrate into Delhivery’s operations.” 

According to Delhivery, the acquisition will be completed subject to Competition Commission of India (CCI) approval and typical closing conditions. 

On the deal, K Satyanarayana, founder of Ecom Express, said: “Delhivery is among India’s leading fully integrated logistics service providers with significant scale advantages and will be the ideal shareholder for Ecom Express’ next phase of growth. With this acquisition and its inherent synergies, businesses across India as well as the logistics industry itself will benefit immensely through the combination of two like-minded players.” 

The acquisition is being done at a trailing enterprise value (EV)/Sales ratio of 0.7x, which appears attractive when compared to Delhivery’s current 1.7x ratio. 

Delhivery will most likely be able to reduce Ecom Express’s long-haul transportation costs by shifting freight to larger trucks in its fleet. The combined business will receive a sizable amount of the higher profits, which is expected to boost the industry’s overall profit stream.

According to analysts, key negative risks to the target price and rating include an e-commerce industry downturn, inability to efficiently use assets to improve profitability, severe competition, and a faster-than-expected pricing fall.

At 3:30 pm, the shares of Delhivery closed 4.08% higher at Rs 269.35 on NSE.

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