Swiggy experienced a significant drop in its share price, falling 7% to Rs 261 on the BSE after announcing a net loss of Rs 800 crore for Q4 FY26. This loss, however, is an improvement from the Rs 1,081 crore loss reported in the same quarter last year.
The company's revenue from operations surged by 45% year-on-year, reaching Rs 6,383 crore for the January-March quarter of FY26. Notably, Swiggy's food delivery segment achieved its highest growth in 15 quarters, with gross order value (GOV) rising 23% YoY to Rs 9,005 crore.
Key Highlights:
- Monthly transacting users in the food delivery segment grew by 21% YoY, totaling 18.3 million.
- Adjusted EBITDA for the food delivery business increased by 40% to Rs 297 crore, with an improved margin of 3.3% of GOV.
- Instamart, Swiggy's quick commerce division, reported a 68.8% YoY increase in GOV to Rs 7,881 crore.
Despite the losses, brokerages like Nuvama, Nomura, and Citi have retained their bullish outlook on Swiggy's stock, citing improving margins and strong execution capabilities.
Nuvama's Perspective
Nuvama has maintained a 'Buy' rating on Swiggy, setting a target price of Rs 477, which suggests a potential upside of over 70% from the last closing price of Rs 280.50 on the NSE. The brokerage noted a moderation in Instamart's growth as management aims for contribution margin breakeven.
Nomura's Analysis
Nomura also upheld its 'Buy' rating but reduced its target price to Rs 473, indicating a nearly 69% upside potential. The firm highlighted strong earnings growth in the food delivery sector and gradual improvements in quick commerce margins.
Citi's Outlook
Citi reaffirmed its 'Buy' recommendation with a target price of Rs 415, suggesting an upside of nearly 48%. While acknowledging competition in quick commerce, Citi noted that key operating metrics for Swiggy are steadily improving.
Disclaimer: The opinions expressed by analysts do not necessarily reflect the views of this publication.
