Delhivery's shares experienced a significant decline in today's trading, closing down 1. 72% at ₹410, while 45. During intra-day trading, the stock even touched a low of ₹410. 00. This downturn comes just as e-commerce platform Meesho's highly anticipated Initial Public Offering (IPO) is set to open tomorrow, December 3, while the connection between these two events is profound, as highlighted by a recent report from global brokerage firm Jefferies.
Meesho's Valmo Strategy and Its Impact
The Jefferies report underscores Meesho's accelerating shift towards its in-house logistics unit, Valmo. This strategic move by Meesho is proving to be a significant concern for third-party logistics companies like Delhivery, which previously handled a substantial volume of orders for the e-commerce giant. Meesho's decision to bolster its internal logistics capabilities directly impacts Delhivery's revenue streams and growth prospects, leading to increased investor apprehension and the subsequent drop in share price. This internalisation strategy allows Meesho greater control over its delivery processes and helps in cost reduction, but at the direct expense of its logistics partners.
Key Findings from the Jefferies Report
Global brokerage firm Jefferies has maintained its 'underperform' rating for Delhivery, setting a target price of ₹390. The report reveals that in the first quarter of fiscal year 2026 (April-June 2025), Meesho processed approximately 29. 6 crore orders through Valmo. In stark contrast, during the same period, end-to-end express parcel delivery companies such as Delhivery handled only 18 crore orders for Meesho, while this data represents a significant reversal from previous trends, where the majority of Meesho's orders were dispatched via third-party delivery services. This clearly indicates Meesho's growing preference for managing a larger portion of its logistics operations internally.
Potential Revenue Hit for Delhivery
Jefferies estimates that roughly 50% of Meesho's shipments are now being handled by Valmo, and critically, this is being done at a Notably lower cost compared to third-party logistics providers. This presents a considerable challenge for Delhivery, especially given that Meesho accounted for approximately 16% of Delhivery's total revenue in fiscal year 2025, while meesho's pivot towards insourcing could severely impede Delhivery's express parcel growth, potentially leading to a negative impact on the company's financial performance. This situation has become a major concern for Delhivery's investors,. As a significant source of their revenue is now at risk.
Highlights of the Meesho IPO
The SoftBank-backed Meesho IPO is scheduled to open for subscription tomorrow, December 3. The price band for this IPO has been fixed between ₹105 and ₹111 per share. The ₹5,421 crore IPO comprises a fresh issue of shares worth ₹4,250 crore, alongside an Offer For Sale (OFS) window where existing shareholders will sell 10. 55 crore shares, while this IPO represents a crucial opportunity for Meesho to raise capital and accelerate its expansion plans, but its ripple effects are clearly being felt across the logistics industry.
Delhivery's Historical Share Performance
Delhivery's shares made their debut in the domestic market on May 24,. 2022, at an issue price of ₹487, following its ₹5,235 crore IPO. Post-listing, the company's shares experienced considerable volatility. On March 13, 2025, Delhivery's stock hit its one-year record low of ₹236. 80. However, from this low, the company staged a remarkable recovery, surging by 106. 90% in ten months to reach its one-year record high of ₹489. 95 on November 4, 2025, while during this period, investors' money more than doubled. Nevertheless, the recent decline following the revelation of Meesho's Valmo strategy has once again impacted investor sentiment.
Market Reaction and Future Outlook
Today's drop in Delhivery's shares reflects the market's reaction to Meesho's expanding in-house logistics capabilities, while as e-commerce companies increasingly seek to gain greater control over their supply chains, third-party logistics providers will need to adapt their business models and explore new strategies. This marks a critical juncture for Delhivery, where it will need to reduce its reliance on large clients like Meesho and explore alternative revenue streams, while the market will closely monitor how Delhivery navigates this challenge and whether it can sustain its growth trajectory amidst evolving industry dynamics.
