On Swiggy's Q2 print, overall B2C gross order value grew 47.6% YoY (12.7% QoQ) to reach Rs 166.8 billion (in-line). Food delivery GOV grew 18.8% YoY to Rs 85.4 billion, largely driven by monthly transacting user addition (+17%). The segment witnessed heightened competition in terms of lowered subscription fee and reduced minimum order values; impact partially offset by platform fee hikes.
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While Swiggy Ltd.'s food delivery remains stable; quick commerce continues to face stiff competition. The company's planned fundraise aims to strengthen its cash reserve amidst competitive pressure.
We largely maintain our FY27/28 adjusted Ebitda estimates and our SOTP-based target price of Rs 450/share (implying 4x Sep-27 EV/sales (includes 43x Sep-27 EV/Ebitda for food delivery; 0.9x Sep-27 net order value for Instamart – a 55% discount to Blinkit). Add rating stays.
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