Motilal Oswal Trims Swiggy Price Target To INR 550, Reiterates ‘Buy’ Rating

Ahead of its financial disclosures for Q2 FY26, brokerage firm Motilal Oswal has slashed foodtech major Swiggy’s price target (PT) by 2% to INR 550 while reiterating its ‘Buy’ rating. This still reflects a 26% upside from the company’s previous close of INR 435.45.

In a report, Motilal Oswal said that Swiggy is entering a phase of profitability, supported by operating discipline and improving network efficiency. Further, it highlighted a combination of steady food delivery (FD) growth, rising Instamart average order value (AOV) and easing fixed-cost drag would increase the visibility of positive unit economics for the company.

It expects Swiggy to report an adjusted loss of INR 4,010 Cr in FY26, which will reduce to INR 600 Cr by FY28. “We believe Swiggy’s pivot from the earlier land-grab phase to a more cost-conscious operating model should drive steady margin expansion ahead,” the brokerage said. 

Further, it also highlighted Swiggy’s rapid expansion in the 10-minute food delivery segment as a clear differentiator for it over its larger competitor Eternal. It noted that Swiggy has been doubling down on quick food delivery with Bolt and Snacc as well as focussing on its affordable offerings with ‘99 Store’. These innovations have helped Swiggy expand its monthly transacting user (MTU) base 

2025 has been an eventful year for the Sriharsha Majety-led company. It has undertaken a host of pilot projects and new launches this year. Some of these include: 

• In September, it launched a new food delivery app ‘toing’ to offer economical meal options to users. The app, which is currently live in select locations in Pune, delivers meals under INR 250.
• In July, it launched the “99 Store” feature within the Swiggy app to offer fast food options in a range of INR 49 and INR 149.
• In June, it began piloting a travel and lifestyle concierge service app ‘Crew’. 
• It rolled out its professional service marketplace Pyng earlier in April.

The series of events for Swiggy also include exiting select businesses and investments. Prominently, the company announced its plans to sell its stake in bike-taxi startup Rapido to the latter’s existing investors Westbridge and Prosus for about INR 2,400 Cr earlier in September. It also hived off its quick commerce arm Instamart into a separate, step-down subsidiary to develop an efficient and strategically aligned corporate entity for the long-term development and performance of the Instamart business. The impact of both of these moves would be seen in the upcoming quarters. 

As of now, Swiggy is seeing a sharp growth in its losses in recent quarters. Its net loss zoomed 96% to INR 1,197 Cr in the June quarter from INR 611 Cr in the year-ago quarter as it also continued to invest to expand its quick commerce operations. 

Back then, the company’s founder said that the company’s losses had peaked. “We have moved past the March 2025 peak of losses in quick commerce, but amidst significant competition we will modulate investments to ensure that we drive the business towards scale-led profitability,” Majety noted.

At 14:16 IST today, shares of Swiggy were trading at INR 434.15 apiece, down 0.30% from previous close.