Archive · 4 Aug 2025
Brokerage Maintains 'Outperform' on Swiggy, Raises Target to ₹480
A brokerage firm analyzed Swiggy's recent performance.
They found that Swiggy did well in food delivery compared to its competitor Zomato and saw a rise in quick commerce spending per order.
However, profits were lower than expected in both areas.
Even though the company is losing money, Swiggy aims to break even on its quick commerce business soon.
The brokerage still thinks the stock is a good buy and has set a higher price target.
Swiggy reported a mixed Q1-FY26 performance, with outperformance in food delivery.
Quick commerce average order value (AOV) increased sharply.
EBITDA margins were below estimates in both food delivery and quick commerce segments.
Swiggy reiterated its contribution breakeven target for quick commerce between 3QFY26 and 1QFY27.
Brokerage maintains an 'Outperform' rating and increases the target price to ₹480.
- Who
- A brokerage firm, analyzing Swiggy's performance.
- What
- Analysis of Swiggy's Q1-FY26 performance and the revision of the target price by a brokerage.
- When
- Q1-FY26; Target price updated in August 2025
- Where
- The analysis focuses on Swiggy's business operations, primarily in India.
- Why
- To assess Swiggy's financial performance and provide investment recommendations.
Upside Potential
Downside Risk
Quick Commerce Performance
Upside Potential
Achieving contribution breakeven in quick commerce and a clear path to EBITDA breakeven.
Downside Risk
Inability to breakeven or reduce losses in quick commerce.
Food Delivery Market Share
Upside Potential
Sustained market share gains in food delivery would be positive.
Downside Risk
Losing market share in the food delivery segment could impact the company's overall performance.
- Target Price
- ₹480
- Current Market Price (CMP)
- ₹399.10
- Rating
- Outperform
- Quick Commerce AOV
- Increased sharply
- Contribution Breakeven Target (QC)
- Between 3QFY26 and 1QFY27
