Stock market recommendations: Delhivery, and Britannia are the top stock picks for the trading week starting February 16, 2026 from Motilal Oswal Financial Services Ltd. Let’s take a look:
DelhiveryThe acquisition of Ecom Express has significantly strengthened Delhivery’s network reach and accelerated consolidation within the logistics sector, enabling the company to gain share as smaller players face margin stress. In 3QFY26, performance remained robust, with EBITDA margins expanding to 7.4%, supported by strong volume traction in the Express Parcel and Part Truck Load segments. Segment-level margin improvement to 18.1% and 11%, respectively, highlights the benefits of operating leverage and improved realizations. With the heavy investment phase largely complete and capital intensity moderating, free cash flow generation is set to improve.Management continues to target steady-state margins of 16–18% in core transportation, with additional upside from Supply Chain Services and newer offerings such as Delhivery Direct and Rapid, positioning the company for structurally stronger profitability ahead.BritanniaBritannia delivered a resilient 3QFY26 with revenue growth of 9.5% YoY, impacted in October by GST-led trade disruptions but witnessing normalization thereafter, with ~12% growth in November–December driven by healthy volumes across biscuits and adjacent categories. Profitability was a key highlight, with gross margin expanding 450bp YoY to 43.3% on stable commodity prices, leading to EBITDA margin of 20.7% and APAT growth of 23% YoY. While dual price points in LUP packs created temporary trade distortion, this is expected to stabilize. With a large share of portfolio in INR5/INR10 packs, improving e-commerce salience, brand investments under new leadership, and focus on distribution expansion and premium adjacencies, Britannia remains well positioned to drive sustained earnings momentum, supporting a constructive long-term view.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)
