Citi has initiated a ‘Buy’ rating on Swiggy, setting a target price of ₹480 per share, citing significant improvements in the company’s business model and a strong long-term growth outlook across both food delivery (FD) and quick commerce (QC).
According to Citi, Swiggy has demonstrated a markedly improved strategy in recent quarters, focusing on expanding its market share and optimizing operational efficiencies. The brokerage believes that Swiggy’s platform-driven approach and its first-mover advantage in the quick commerce space position it well for sustained growth in the years ahead.
While Swiggy continues to compete aggressively with Zomato in the food delivery segment, Citi expects the company to prioritize market share expansion throughout 2025, with profitability taking center stage in 2026. The brokerage anticipates strong user adoption trends in quick commerce, where Swiggy’s Instamart business has been growing rapidly despite heightened competition.
Citi’s bullish stance comes amid rising investor concerns over Swiggy’s widening losses, particularly in quick commerce. However, the brokerage believes that the company’s scale, brand recall, and growing user base will eventually translate into stronger financial performance.
With food delivery showing steady volume growth and quick commerce set to become a major revenue driver, Citi remains optimistic about Swiggy’s long-term potential, making it a compelling investment opportunity in the Indian consumer-tech space.
