Brokerage firms Nomura and Motilal Oswal have given a ‘Buy’ rating on Swiggy's shares, projecting a potential upside of 30–34%. Both firms state that the company's food delivery and quick commerce businesses are growing rapidly, cost control has improved, and the path to profitability now appears clear.
Swiggy Share Price: Two leading brokerage firms, Nomura and Motilal Oswal, have shown a positive outlook on the online food delivery company Swiggy. Both firms have given a ‘Buy’ rating on the company's shares, projecting a potential gain of 30 to 34 percent. Nomura has set a target price of ₹560 for Swiggy, and Motilal Oswal has set it at ₹550. According to reports, b growth is being observed in the company's food delivery orders and its quick commerce platform, Instamart, while expenses have decreased and profitability prospects have increased. This could make the stock an attractive option for investors.
Brokerage Firms Express Confidence
Nomura has increased Swiggy's target price from ₹550 to ₹560, while Motilal Oswal has maintained its target at ₹550. Nomura analysts Abhishek Bhandari and Karan Nain state that if the company continues to manage its business wisely and maintains a clear path to profitability, Swiggy's shares could perform even better in the future.
Meanwhile, Motilal Oswal stated in its report that the company's operating situation is improving, and its financial position is strengthening due to better cost control.
Food Delivery Accelerates Company's Growth
Swiggy's food delivery business grew rapidly in the September quarter (Q2 FY26). The company's Gross Order Value (GOV) increased by 6 percent over the last three months and by 19 percent compared to the same period last year. This growth surpassed Zomato's 18 percent growth.
Swiggy's Monthly Transacting Users (MTU) grew by 5.7 percent to 17.2 million. This means more people are ordering from the app every month. The company's earnings per order (take rate) also increased to 25.8 percent. Meanwhile, the company's contribution margin remained stable at 7.3 percent.
Although the company had to reduce subscription fees and minimum order value due to increasing market competition, it managed to increase its EBITDA margin to 2.8 percent. This indicates that the company's earnings have improved despite cost controls.
Instamart Growing Rapidly in Quick Commerce
Swiggy is working to rapidly expand its quick commerce business, “Instamart”. The company is preparing to raise approximately ₹10,000 crore to strengthen this segment. According to Nomura, this decision has been made at the right time, as competition from companies like Zepto and Blinkit is increasing in this sector.
Motilal Oswal's report states that Instamart's performance is consistently improving. In the September quarter, Instamart's Gross Order Value stood at ₹70,200 crore, which represents a significant increase of 107 percent compared to last year.
The company's contribution margin improved from -4.6 percent to -2.6 percent. Meanwhile, the EBITDA margin has reduced from -15.8 percent to -12.1 percent. This means that Instamart is gradually moving out of losses and could become a significant source of profit for the company in the future.
Company's Results Are Improving
In the September quarter, Swiggy's total revenue was ₹5,560 crore, which is 12.1 percent higher than the previous quarter. Although the company still incurred a loss of ₹1,100 crore, this loss is now significantly lower compared to before.
According to brokerage reports, continuous growth in food delivery, improved performance of Instamart, and reduction in expenses are leading to an improvement in Swiggy's unit economics.
Investors' Eyes on Swiggy
Both Nomura and Motilal Oswal believe that Swiggy's growth story is not yet over. The company has a b business model, a growing customer base, and the expansion of quick commerce can take it to new heights.
