JPMorgan has reiterated an ‘Overweight’ rating on Swiggy, with a target price of ₹540, citing strong performance in food delivery and improving profitability metrics, even as Quick Commerce (QC) remains in investment mode.
The company’s Q4FY25 results revealed that food delivery revenue climbed 18.4% YoY to ₹1,629 crore, while EBIT margins expanded to 13.5%, up sharply from 3.1% a year ago. JPMorgan called this a “clear sign of scale efficiency and pricing discipline.”
Quick Commerce revenue rose to ₹2,004 crore, but the segment posted a wider EBIT loss of ₹771 crore, keeping Swiggy’s total net loss elevated at ₹1,081 crore. The brokerage acknowledged that QC growth slightly lagged Blinkit, but believes the segment is still gaining strategic relevance.
Swiggy also reported negative free cash flow (FCF) below ₹1,500 crore, largely due to store capex and working capital investments, but JPMorgan sees this as a calculated bet to scale before the breakeven window in FY26.
The brokerage emphasized that Swiggy’s two-pronged approach—scaling food delivery profitability while investing in QC—is yielding early signs of success, and the stock remains one of its preferred picks in Indian internet plays.
