Mumbai, April 7, 2025 – In a rare bright spot amid a tumultuous day for Indian markets, logistics giant Delhivery Ltd. saw its share price climb following the announcement of its ₹1,400 crore acquisition of a controlling stake in rival Ecom Express Ltd. The deal, finalized on April 5, has been hailed as a strategic move that could reshape India’s logistics landscape, even as the broader market grappled with one of its worst single-day declines in four years.
The BSE Sensex and NSE Nifty50 plummeted today, driven by global trade tensions sparked by U.S. President Donald Trump’s new tariff hikes and China’s retaliatory 34% tariffs on U.S. imports. Despite this backdrop, Delhivery’s stock emerged as a standout performer, bucking the trend of widespread losses. By midday trading, the company’s shares had risen approximately 3.5% on the National Stock Exchange (NSE), reaching ₹267.35, while the Sensex was down over 3,200 points at 72,150.
The acquisition, which sees Delhivery securing a 99.4% stake in Ecom Express, was praised by analysts for its attractive valuation. HSBC analysts highlighted that the deal was struck at a trailing enterprise value-to-sales (EV/Sales) ratio of 0.7x, significantly lower than Delhivery’s own 1.7x ratio. “This acquisition appears value-accretive for Delhivery, offering a compelling entry point into Ecom Express’s established network at a discount to its historical valuation,” HSBC noted in a report. The deal’s price tag of ₹1,400 crore also stands in stark contrast to Ecom Express’s peak valuation of ₹7,300 crore during its last private equity raise, signaling a distressed sale amid the latter’s operational challenges.
Delhivery’s management emphasized the acquisition’s potential to enhance scale and efficiency. Sahil Barua, MD and CEO of Delhivery, stated, “The Indian economy demands continuous improvements in logistics cost efficiency, speed, and reach. This acquisition will enable us to better serve customers of both companies through bold investments in infrastructure, technology, and network capabilities.” The integration of Ecom Express’s operations, which include a robust last-mile delivery network, is expected to bolster Delhivery’s existing reach across 18,700 pin codes and its service offerings, ranging from express parcels to supply chain solutions.
For Ecom Express, the deal marks a pivot from its earlier ambitions. The Gurugram-based firm had shelved plans for a ₹2,600 crore initial public offering (IPO) in 2024 after facing headwinds, including the loss of key client Meesho to its in-house logistics arm, Valmo, and subsequent layoffs of nearly 500 employees. Despite revenue growth to ₹2,607 crore in FY24 (up from ₹2,548 crore in FY23) and a 40% reduction in losses to ₹256 crore, the company struggled to maintain its footing in a competitive market. The acquisition allows major investors like Warburg Pincus, British International Investment, and Partners Group—holding over 80% of Ecom Express—to exit fully, while founder K. Satyanarayana expressed optimism about the future, saying, “Delhivery’s scale advantages make it the ideal partner for Ecom Express’s next growth phase.”
Market analysts see the move as a sign of consolidation in India’s logistics sector, where low margins and rising competition from e-commerce giants’ in-house operations have squeezed smaller players. “Delhivery’s acquisition of Ecom Express at this valuation not only strengthens its market position but also signals that weaker players may either consolidate or exit,” said Satish Meena, advisor at Datum Intelligence. HSBC retained its ‘Buy’ rating on Delhivery with a target price of ₹400, implying a potential upside of nearly 50% from current levels, though it cautioned that successful integration will be key to realizing the deal’s synergies.
The transaction, subject to approval from the Competition Commission of India, is expected to close within six months. As of 3:17 PM IST today, Delhivery’s market capitalization stood at approximately ₹19,900 crore, reflecting investor confidence in the acquisition despite the day’s broader market turmoil. With cash reserves of ₹5,488 crore as of September 30, 2024, Delhivery appears well-positioned to fund this expansion, setting the stage for a potentially transformative chapter in its growth story.
