Blue Dart Express shares surge 7% after Q1 results. Here's why Nuvama retains Buy, raises target

Shares of Blue Dart Express surged 6.77% to Rs 5,509.50 in Monday’s trading session after the logistics major reported a strong Q1FY27 performance. Brokerage firm Nuvama retained its ‘Buy’ rating on the stock, citing strong execution and growth prospects.

The company’s consolidated net profit jumped 79.6% year-on-year (YoY) to Rs 88 crore in Q1FY27, compared with Rs 49 crore in the corresponding quarter last year. Revenue from operations increased 15.1% YoY to Rs 1,658 crore, from Rs 1,441 crore in Q1FY26.

The strong quarterly performance was supported by higher revenue traction, improved operational efficiency, and expansion in operating margins. Blue Dart’s EBITDA margin improved significantly, reflecting better cost management and disciplined execution despite a challenging business environment.

Commenting on the results, Balfour Manuel, Managing Director, Blue Dart, said, “Our Q1FY27 performance reflects focused execution, disciplined network management and continued customer confidence in the Blue Dart brand. Despite a challenging operating environment and higher operating costs, we delivered strong profit growth while maintaining our commitment to reliability, speed and service excellence.”

He added that the company remains focused on enhancing productivity, strengthening its integrated air and ground network, accelerating digital adoption, and investing in sustainable capabilities to create long-term value for stakeholders.

Nuvama remains bullish, raises valuation outlook

Brokerage firm Nuvama maintained its ‘Buy’ rating on Blue Dart Express, citing strong quarterly execution and the company’s positioning in the growing e-commerce logistics segment.

According to Nuvama Research, Blue Dart delivered a robust Q1FY27 performance, with revenue growth of 15% YoY, ahead of estimates. The brokerage highlighted that EBITDA margin expanded by 220 basis points YoY to 15.8%, while profit before tax (PBT) margin improved to 7.2% from 4.6% a year ago, reaching the company’s guided medium-term range of 7–8%.

The brokerage noted that profit after tax (PAT) surged 81% YoY to Rs 88.5 crore, significantly exceeding its estimates and consensus expectations. Following the strong quarter, Nuvama raised its FY27E and FY28E earnings per share (EPS) estimates by 4% and 2%, respectively.

Nuvama has retained its ‘Buy’ recommendation, valuing Blue Dart at 38x June 2028 earnings, and revised its June 2027 target price to Rs 7,350 from the earlier Rs 6,900.

The brokerage believes Blue Dart is well positioned to benefit from the ongoing consolidation in the e-commerce parcel market, which contributed around 30–31% of revenue in FY26. At the current market price, the stock trades at approximately 28x FY28E earnings.

With improving margins, sustained revenue growth, and a strong logistics network, Blue Dart remains a key beneficiary of India’s expanding express delivery and e-commerce ecosystem.

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