Synopsis: Motilal Oswal says Swiggy Limited’s ₹10,000 crore fundraise will be used for expansion and profitability, not big discounts. Instamart’s improving GOV could break even by Q1 FY27, boosting valuation.
This Quick Commerce Stock, engaged in providing app-based food delivery, quick-commerce grocery services, and hyperlocal logistics solutions, connecting customers with restaurants, dark stores, and delivery partners, jumped 5.06 percent after Motilal Oswal gave a positive outlook following the company’s Rs. 10,000 crore fundraise.
With a market capitalization of Rs. 1,04,010.01 crores, the share of Swiggy Limited has reached an intraday high of Rs. 421.60 per equity share, rising nearly 5.06 percent from its previous day’s close price of Rs. 401.30. Since then, the stock has retreated and is currently trading at Rs. 417.10 per equity share.
Reasons Behind the Surge:
Swiggy’s recent fundraise of Rs 10,000 crore is not expected to restart a heavy discounting war in the food-delivery market. According to Siddhartha Khemka from Motilal Oswal Financial Services, the money will likely be used for steady expansion and improving Swiggy’s long-term profitability. He said fears that the funds would go into large cashbacks and aggressive offers are unnecessary because the worst phase of discounting is already over in the industry.
Siddhartha Khemka also pointed out that competitors like Zepto, which once relied heavily on discounts, are now preparing for an IPO and shifting their focus towards making profits. This shows that the market has become more mature, with companies making wiser business decisions instead of spending heavily on promotions.
For Swiggy itself, Khemka sees more potential for growth compared to other listed players. He believes Swiggy is moving closer to profitability due to better cost control, improved efficiency, and benefits from operating at a larger scale in its core food-delivery business.
He also highlighted positive signs in Swiggy’s quick-commerce service, Instamart. The platform’s Gross Order Value (GOV) is rising steadily, and Motilal Oswal expects Instamart to break even by the first quarter of FY27. Khemka believes that once Instamart reaches this milestone, it could help boost Swiggy’s overall valuation and market confidence even further.
Brokerage Target:
Motilal Oswal, a prominent brokerage firm, has recommended a “Buy” call on Swiggy Limited with a target price of Rs. 550 per share, indicating an upside potential of 37.05 percent from its previous day’s close price of Rs. 401.30.
Further, on October 31, 2025, ICICI Securities, a prominent brokerage firm, has also recommended a “Buy” call on Swiggy Limited with a target price of Rs. 740 per share, indicating an upside potential of 84.40 percent from its previous day’s close price of Rs. 401.30.
Company Overview:
Swiggy Limited was founded in August 2014 in Bengaluru by Sriharsha Majety, Nandan Reddy, and Rahul Jaimini. The company began as a simple platform to connect hungry customers with local restaurants. Using strong technology for quick ordering and real-time tracking, it rapidly expanded from a small startup into one of India’s leading hyperlocal service companies and is now a publicly listed unicorn.
The company’s core business is food delivery, operating across 718 cities as of 2025, often delivering meals in under 30 minutes. Swiggy has also diversified through Instamart, its quick-commerce service available in 124 cities, offering groceries and essentials within 13 minutes.
Swiggy Limited provides services such as Swiggy Genie for parcel delivery, Swiggy Access for cloud kitchens, and the Swiggy One subscription, all of which strengthen its ecosystem. The app uses AI for route planning, demand prediction, and personalized recommendations, making it a convenient all-in-one platform.
With lakhs of delivery partners, Swiggy competes closely with Zomato and Blinkit. The company aims to grow deeper into rural India and explore international expansion.
Revenue Mix of Q2 FY25:
In Q2 FY25, Swiggy Limited reported a revenue from operations of Rs. 5,563 crore, led by Supply Chain & Distribution at Rs. 2,560 crore (46.02 percent), Food Delivery at Rs. 1,923 crore (34.57 percent), and Quick-commerce at Rs. 980 crore (17.62 percent).
Smaller streams include Out-of-Home Consumption at Rs. 88 crore (1.58 percent) and Platform Innovations at Rs. 12 crore (0.22 percent). The mix reflects diversified, resilient growth beyond core food delivery and improving profitability prospects ahead.
Recent Quarter Results:
Coming into financial highlights, Swiggy Limited’s revenue has increased from Rs. 3,601 crore in Q2 FY25 to Rs. 5,561 crore in Q2 FY26, which has grown by 54.43 percent. The net loss of the company has increased from Rs. 626 crore in Q2 FY25 to Rs. 1092 crore in Q2 FY26.
Swiggy Limited’s revenue has grown at a CAGR of 34.43 percent over the last five years. In terms of return ratios, the company’s ROCE and ROE stand at -42.55 percent and -32.65 percent, respectively. Swiggy Limited has an earnings per share (EPS) of Rs. -17.5, and its debt-to-equity ratio is 0.25x.
Written By – Nikhil Naik
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