Broker’s call: Swiggy (Buy)

SENSEX 74,729.27

+ 413.66

NIFTY 23,146.15

+ 148.80

CRUDEOIL 9,580.00

+ 295.00

GOLD 147,915.00

+ 426.00

SILVER 211,170.00

+ 510.00

SENSEX 74,729.27

+ 413.66

NIFTY 23,146.15

+ 148.80

NIFTY 23,146.15

+ 148.80

CRUDEOIL 9,580.00

+ 295.00

CRUDEOIL 9,580.00

+ 295.00

GOLD 147,915.00

+ 426.00

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Anand Rathi

By KS Badri Narayanan

Updated - October 17, 2026 at 03:23 AM.

Swiggy is transitioning from a phase where growth was a compromise against profitability

Target: ₹310

CMP: ₹234.05

Swiggy is transitioning from a phase where growth was a compromise against profitability. Noticeably, over the last four quarters, it deliberately chose CM over unbridled growth, evident from rebound in CM from a peak loss of negative about 5.6 per cent in Q4-FY25 to contribution break even in Q1FY27 to an era where growth actively drives profitability.

In the next two quarters, it will try to close the gap with Blinkit in terms of growth and accordingly, CM will be in the higher range of guided zero to negative 1 per cent translating to higher EBITDA loss. While QC got stabilised, core Food Delivery segment continued to serve as primary profit generator. The segment recorded steady EBITDA margin of around 3.1 per cent on a strong about 17.4 per cent YoY expansion in GOV in Q1FY27. This also offers steady cash flows to support network expansion.

We believe the cash flow generated by FD segment and treasury income (as of Q1FY27 cash balance of ₹14,000 crore) are expected to fully cover any operational losses from QC by FY28/1HFY29. At CMP, the stock trades at attractive valuation of ~23x FY28 EBITDA giving the investors QC and DO for free.

Hence, we upgrade our rating on the stock to Buy with an unrevised TP of ₹310, assuming 30x FY28e adj EBITDA to FD (around 15 per cent discount to Zomato)

Published on October 16, 2026

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