Shares of Swiggy surged over 2% in early trade after brokerage Motilal Oswal upgraded its outlook on the company, reflecting renewed optimism in India’s internet and food delivery sector. The brokerage upgraded Swiggy to a buy rating with a target price of ₹560. As of 10:43 AM, the shares were trading 2.33% higher at Rs 432.95.
Motilal Oswal highlighted that the food delivery (FD) segment, which had seen growth capped at 17–18% due to weak demand and rising costs, is now showing clear signs of recovery. Growth is expected to accelerate beyond 20% over the next two to four quarters, driven by festive demand and favourable GST reforms.
In addition, the quick commerce (QC) segment is stabilizing as competitive pressures ease. New entrants are struggling to scale, dark store expansion is slowing, and leading players are focusing on cost optimization. These measures have reduced discounting and lowered customer acquisition costs. The brokerage also noted that GST reforms are likely to boost QC adoption in non-metro areas.
Motilal Oswal has raised its growth estimates for Swiggy to 21–23% for FY26–27 and increased valuation multiples to 35 times FY27 estimated adjusted EBITDA, up from 27 times previously. Profitability timelines for services such as Instamart and Blinkit have been accelerated, with expectations of earlier breakeven.
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