Bernstein has reiterated its ‘Outperform’ rating on Swiggy, assigning a target price of ₹435, following what it called an in-line quarter with solid execution in food delivery. The brokerage highlighted that Swiggy’s Gross Order Value (GOV) in food delivery rose 17.6% YoY, outpacing arch-rival Zomato and signalling market share gains in the core business.
Swiggy’s Q4FY25 results showed food delivery revenue up 18.4% YoY to ₹1,629.3 crore, with EBIT surging 419.8% to ₹220.4 crore, pushing margins up to 13.5% from 3.1% last year. Bernstein noted that contribution margins improved by 40 basis points to 7.8%, with adjusted EBITDA at 2.9%, a healthy figure in the Indian internet space.
However, Bernstein flagged ongoing challenges in Quick Commerce (QC). While QC revenue rose 58.4% YoY to ₹2,004.1 crore and GOV surged 101%, EBIT loss widened to ₹771 crore, contributing to an overall EBITDA loss of ₹961.7 crore, nearly double last year’s ₹485.3 crore loss. The brokerage said breakeven timelines for QC have now been pushed out to FY26–FY27.
Still, Bernstein remains optimistic, stating that Swiggy is executing well in food delivery, and that investments in QC may start paying off once operational efficiencies kick in. It called Swiggy’s dual-engine strategy “well-placed to capitalise on urban consumption trends.”
