Citi has maintained a ‘Buy’ rating on Swiggy, with a target price of ₹425, after the company posted strong food delivery growth but wider-than-expected losses in Quick Commerce (QC) during Q4FY25.
Swiggy reported a 44.8% rise in total revenue to ₹4,410 crore, while food delivery revenue grew 18.4% YoY to ₹1,629 crore. Citi noted this was in-line with expectations, adding that medium-term guidance of 18–22% growth in food delivery (FD) has been retained.
Despite robust topline, adjusted EBITDA loss came in at ₹730 crore, higher than Citi’s estimate of ₹670 crore. QC was the primary drag, with EBIT loss widening to ₹771 crore, even as the segment reported YoY revenue growth of 58.4%. QC’s breakeven is now forecasted between Q3FY26 and Q1FY27.
Citi acknowledged that user growth in QC slightly trailed Zomato’s Blinkit, but maintained that Swiggy remains structurally well-positioned. “Execution in food delivery is strong, and we view QC as a long-term optionality despite near-term pain,” the brokerage added.
