Swiggy said the strategy of prioritising efficiency and profitability in quick-commerce has led to a near-term slowdown in order volumes, but reiterated that it remains on track to achieve break-even at the contribution-margin level in the first quarter of FY27.
In the food-delivery segment, GOV growth stood at 22.6% year-on-year, ahead of expectations of 18-20% growth. Margins improved by 41 basis points year-on-year to 3.3% of GOV.The company also reiterated its medium-term guidance of 18-20% annual GOV growth and maintained margin guidance of 5% of GOV.
Instamart reported net order value (NOV) growth of 60.3% year-on-year, below expectations of over 80% growth. EBITDA loss for the segment stood at ₹858 crore, within the estimated loss range of ₹800-900 crore.
Swiggy said it remains confident of scaling the quick-commerce business into a ₹1 lakh crore-plus NOV platform with 4-5% EBITDA margins over the medium term.
How brokerages reacted to Swiggy Q4Brokerage firm Nomura maintained its ‘Buy’ rating on the stock with a target price of ₹473. The brokerage said Swiggy’s food-delivery business continues to deliver strong growth, while moderation in quick-commerce reflects the company staying away from irrational competition.
Nomura added that the company remains well-funded to navigate competitive intensity in the quick-commerce space. However, it cautioned that prolonged competition could delay profitability beyond FY27.
Citi also retained a ‘Buy’ rating with a target price of ₹415. The brokerage said that Swiggy exited March 2026 with contribution margins of negative 1.1% in quick-commerce, compared to negative 1.8% in the previous quarter, and said the company remains on track to turn contribution-margin positive in the current quarter.
Citi added that competition continues to be a major headwind for quick-commerce growth, though operational metrics are steadily improving.
Morgan Stanley maintained an ‘Equalweight’ rating with a target price of ₹322. The brokerage highlighted marginal market-share gains in food delivery, but expects a sharp moderation in quick-commerce growth in FY27.
Kotak Mahindra Bank retained its ‘Buy’ call with a target price of ₹370. The brokerage said food-delivery GOV growth exceeded estimates, while Instamart’s growth moderated sequentially.
Kotak also warned that weak GOV growth and elevated losses in quick-commerce may persist despite improvement in contribution margins, prompting it to cut revenue and EBITDA estimates for Instamart.
Swiggy shares ended 1.18% higher on Friday at ₹282.80. The stock has declined 28% so far this year.
