Global brokerage firm JPMorgan has maintained its 'Overweight' rating on Swiggy, a leading Indian quick-commerce and food delivery platform, with a target price of Rs 360. This optimistic outlook is primarily driven by the anticipated acceleration in India's quick-commerce market, expected to gain momentum from Q2 FY27.
Quick-Commerce Expansion and Swiggy's Market Strategy
JPMorgan's analysis highlights Swiggy's strategic efforts to expand its Total Addressable Market (TAM) by engaging new users and reactivating dormant accounts. The brokerage firm noted that the quick-commerce segment, particularly through Swiggy Instamart, is focusing on private labels and diversifying its product assortment to capture a larger share of the growing market.
Food delivery growth guidance remains robust at 18-20% year-over-year. The traction of Swiggy's 'Toing' service and its ability to retain repeat users are considered key indicators for assessing its future potential in this competitive landscape.
Financial Performance in Q1 FY27
Swiggy reported a significant narrowing of its net loss for the June 2026 quarter (Q1 FY27). The net loss fell to Rs 791 crore, a substantial improvement from the Rs 1,197 crore loss recorded in the same period last year.
- Revenue Growth: Revenue from operations surged by 37% year-over-year, reaching Rs 6,812 crore in Q1 FY27, up from Rs 4,961 crore.
- EBITDA Improvement: The company's EBITDA loss also saw a reduction, declining to Rs 650 crore in Q1 FY27 from Rs 945 crore in the prior fiscal's first quarter.
- Food Delivery Performance: The Gross Order Value (GOV) for the food delivery business grew by 17.4% year-over-year, totaling Rs 9,490 crore. Adjusted EBITDA for food delivery rose by Rs 100 crore year-over-year, reaching Rs 292 crore.
- User Base Expansion: Monthly transacting users (MTUs) in food delivery increased by 17.8% year-over-year, reaching 19.2 million.
Swiggy acknowledged a seasonal impact on margins during Q1, anticipating normalization throughout the year, alongside an annual hike implemented during the quarter.
Long-Term Vision and Growth Targets
Looking ahead, Swiggy has articulated an ambitious FY31 vision to establish a Rs 10,000 crore adjusted EBITDA business. This plan involves more than tripling its consolidated Gross Order Value (GOV) to nearly Rs 2.5 lakh crore from Rs 67,734 crore in FY26. This implies a Compound Annual Growth Rate (CAGR) exceeding 30% for GOV through 2031, coupled with expanding profitability across its operations.