Swiggy shares gain as analysts retain optimism despite wider net loss

Shares of Swiggy Ltd. opened with gains of over 3% on Friday, October 31, after the food delivery aggregator announced a board meeting on November 7 to consider raising ₹10,000 crore via a qualified institutional placement (QIP), alongside its quarterly financial results.

Brokerage firm Nomura, which has a 'Buy' rating on Swiggy with a price target of ₹560, said the proposed fund-raising will help strengthen the balance sheet, particularly for the quick commerce business.

Nomura expects the company to sustain its growth momentum in food delivery and deliver 19-20% year-on-year gross order value (GOV) growth in FY26-27F, with contribution margins in the range of 7.5-7.7%.

CLSA has an 'Outperform' rating on Swiggy, with a price target of ₹493. The brokerage said Q2 was mixed, marked by an improvement in contribution per order for Instamart, though this came at the cost of slower order growth and customer additions.

Food delivery performance was also mixed, with better take rates but a slightly lower-than-expected contribution and EBITDA. CLSA said that while Swiggy has made positive strides, the execution gap with Eternal widened this quarter.

Jefferies maintained its 'Buy' rating on Swiggy, with a price target of ₹500. The brokerage said that profitability in quick commerce will require an uptick in take rates as well as improved network utilisation.

Swiggy Q2 update

For the September quarter, Swiggy's revenue rose 54% year-on-year to ₹5,561 crore from ₹3,601 crore in the same period last year.

Earnings before interest, tax, depreciation and amortisation (EBITDA) loss widened to ₹798 crore from ₹554 crore a year ago.

The company reported a net loss of ₹1,092 crore for the quarter, higher than the ₹626 crore loss in the corresponding quarter last year.

GOV Comparison	Swiggy	Eternal
Food Delivery	+18.8%	+18%
Quick Commerce	+107.6%	+152%
Dark Stores	1,102	1,816

Q-Comm internals

Average order value rose 40% YoY to ₹697. Contribution losses declined 30% QoQ, while margins stood at -2.8%. The non-grocery segment accounted for 26.2% of Q-Comm sales, up from 8.7% a year ago.

Key to track

- Cash on books at ₹4,605 crore vs ₹5,354 crore QoQ

- With the ₹2,400 crore Rapido stake sale, cash expected to rise to ₹7,000 crore

- Eternal's cash balance at end of Q2 stood at ₹18,314 crore

Swiggy shares are now trading 1.64% higher at ₹424.80. The stock remained above its IPO price of ₹390. Shares are down 22% so far this year.