Swiggy Q4 Results Review: Motilal Oswal Maintains 'Neutral' Stance On The Stock, Cuts Target Price— Here's Why

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Motilal Oswal Report

We expect Swiggy Ltd.'s food delivery orders to grow at 11.7% annually with an annual order value growth of ~1.0%, leading to a gross order value growth of 12.6% over FY25-37 (18.5% GOV CAGR over FY24-29). Quick commerce is likely to grow faster, with orders increasing at 26.2% annually, AOV growth at 2.7%, and GOV growth at 29.5% (67% GOV CAGR over FY25-29).

Swiggy is likely to report a PAT margin of -18.9%/-10.0% in FY26/FY27. Our profitability estimates for FY26/FY27 have been hit by intensive competition and dark store expansion.

Our DCF-based valuation of Rs 340 suggests a 9% potential upside from CMP. We reiterate our Neutral rating on the stock.

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