Swiggy Share Receives ‘Buy’ Call With Huge Upside Potential From Nomura and UBS

Synopsis: The share of this company, a leading Indian food delivery and quick-commerce platform, gained brokerage attention after global firms projected up to 85 percent upside.

The article outlines the rationale behind the upside in the share of this company, which operates across hundreds of cities in India, offering food delivery, quick-commerce grocery, and dining reservation services through a single unified mobile application.

With the market capitalization of Rs 70,264 crore, Swiggy Ltd. closed today at Rs 255, down by 0.29 percent from its previous close. The share of this company gave a negative return of 21 percent in the last year.

Nomura on Swiggy

Nomura maintained its ‘Buy’ rating on the stock while reducing the target price to Rs 473 from Rs 546, citing revised estimates. Despite the cut, it still implies a potential upside of around 85.4 percent from today’s closing. 

According to Nomura, the company’s food delivery business continued to show resilience with steady demand trends and improving operational efficiency. The brokerage highlighted that strong execution in the core segment, along with consistent order growth, is helping the company maintain its leadership position in India’s online food delivery market.

Nomura also noted gradual improvement in quick commerce margins, driven by better dark store utilization, higher order density, and tighter cost controls. The brokerage believes the company’s focus on operational efficiency and scale benefits could support margin expansion in the coming quarters despite competitive intensity in the segment.

The brokerage further stated that the company remains well funded, providing flexibility to invest in growth initiatives while managing profitability targets. Nomura maintained that Swiggy’s medium-term target of achieving Rs 1 trillion (1 Lakh Crore) gross order value remains achievable, though sustained execution on profitability will remain a key monitorable.

UBS on Swiggy

UBS maintained its Buy rating on Swiggy with a target price of Rs 390, citing stronger-than-expected food delivery growth, improving profitability outlook, and expectations of lower capital expenditure in FY27.

According to UBS, Swiggy delivered a strong performance in its food delivery business during Q4FY26, with gross order value growth surpassing estimates. The brokerage noted that steady demand trends, higher order frequency, and improved execution in core markets supported overall growth despite increasing competition in the segment.

UBS highlighted that weakness in the quick commerce business partially offset the gains from food delivery. Higher investments, intense competition, and elevated customer acquisition costs continued to weigh on profitability. However, the brokerage believes the company is focusing on improving operational efficiency and scaling sustainably over the medium term.

The brokerage expects Swiggy’s contribution margin to reach breakeven by Q1FY27, supported by better cost control and improving unit economics. UBS also pointed out that capital expenditure is likely to decline in FY27, which could help improve cash flow generation and reduce pressure on overall profitability.

Macquarie on Swiggy

Macquarie upgraded Swiggy to “Neutral” after the stock corrected nearly 30 percent from its IPO levels, making valuations more reasonable. The brokerage also highlighted improving momentum in the food delivery segment, which remains the company’s core business and a key profitability driver.

The brokerage noted that while Instamart continued to grow, the pace moderated sequentially during the quarter. In addition, dark store additions remained muted, indicating a more measured expansion strategy as the company focuses on balancing growth with operational efficiency in the competitive quick commerce segment.

Macquarie believes quick commerce losses are likely to remain elevated in the near term due to continued investments and intense competition. However, the sharp correction in the stock price, along with steady food delivery performance, has improved the overall risk-reward equation for investors despite near-term profitability challenges.

About the Business

Swiggy is a leading Indian on-demand convenience platform headquartered in Bengaluru, Karnataka. Founded in 2014, it operates across hundreds of cities in India, offering food delivery, quick-commerce grocery, and dining reservation services through a single unified mobile application. 

Financial highlight: The revenue from operations grew by 45 percent to Rs 6,383 crore in Q4 FY26 (Mar 2026) from Rs 4,410 crore in Q4 FY25 (Mar 2025), and the EBIDT loss narrowed to Rs 698 crore in Q4 FY26 from Rs 964 crore in Q4 FY25. Accompanied by a net loss reduction to Rs 800 crore in Q4 FY26 from Rs 1,081 crore in Q4 FY25, resulting in an EPS loss reduction to Rs 2.90 per share in Q4 FY26 from Rs 4.73 per share in Q4 FY25. 

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