Swiggy share price target: Food delivery and quick commerce company Swiggy, which also owns Instamart, incurred a loss of Rs 1,081 crore in the year-ago period. Revenue from operations jumped 44.74 per cent to Rs 6,383 crore in Q4 FY26.
The brokerage firm, Morgan Stanley, shared a neutral stance on the food delivery stock along with the latest target price. Let’s find out why:
Created with AI. Errors are possibleSwiggy share price target: Morgan Stanley neutral on food delivery stock
The brokerage firm, Morgan Stanley, maintains an equal weight rating with a target price of Rs 322. Reasons being:
1. The brokerage projects 18-20 per cent growth for the food delivery segment.
2. The company is currently testing its ‘Toing’ pilot with lower average order values, and its future expansion will depend on the sustainability of its unit economics.
3. The company targets over 21 trillion net order value and a 4-5 per cent EBITDA margin for quick commerce.
4. The brokerage further highlighted that Swiggy reiterates Q1FY27 as the break-even timeline for quick commerce contribution margins.
5. Anticipates near-term low-quality user churn while maintaining contribution margin discipline.
6. Prioritises scaling the dining-out business, with potential to double from current levels.
During the quarter, Swiggys platform average monthly transacting users (MTU) grew 27.2 per cent YoY to 25.2 million, while gross order value (GOV) rose 40.7 per cent to Rs 18,131 crore. The company’s adjusted EBITDA loss narrowed to Rs 652 crore in Q4 FY26 from Rs 732 crore in Q4 FY25.
In the food delivery business, GOV increased 22.57 per cent to Rs 9,005 crore in Q4 FY26, compared with Rs 7,347 crore in Q4 FY25. Adjusted revenue from the segment rose 23.41 per cent YoY to Rs 2,304 crore in Q4 FY26.
In the quick commerce segment, Instamart GOV grew 68.8 per cent YoY to Rs 7,881 crore in Q4 FY26. Average order value increased 32.83 per cent YoY to Rs 700 per order, driven by a sustained non-grocery mix and larger basket sizes, reflecting deeper engagement across user cohorts.
In the quick commerce segment, Instamart GOV grew 68.8 per cent YoY to Rs 7,881 crore in Q4 FY26. Average order value increased 32.83 per cent YoY to Rs 700 per order, driven by a sustained non-grocery mix and larger basket sizes, reflecting deeper engagement across user cohorts.
At the time of writing the report (8:35 AM), Swiggy shares were trading 1.82 per cent higher at Rs 254.35, compared with their previous closing price of Rs 249.80.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
