Motilal Oswal Turns Bullish on Swiggy
Swiggy is back on the investor radar — and this time, it’s for all the right reasons. Motilal Oswal Financial Services (MOFSL) has reiterated its ‘Buy’ rating on the food delivery giant, expecting the stock to climb nearly 26% to ₹550 per share in the coming months.
The brokerage says Swiggy has successfully moved past its “growth at any cost” phase and is now laser-focused on profitability, operational efficiency, and sustainable expansion.
Steady Growth and Leaner Operations
Swiggy’s business model has matured significantly, analysts noted. Its food delivery (FD) arm continues to grow steadily, while its quick commerce vertical, Instamart, is showing impressive improvements in average order value (AOV) and unit economics.
In simple terms, that means Swiggy is now making more money per order — without spending as much to get those orders delivered. That’s the kind of balance investors love.
MOFSL analysts Abhishek Pathak, Tushar Dhonde, and Keval Bhagat highlighted that “steady improvements in AOV, dark-store throughput, and take rates” are boosting Swiggy’s profitability outlook.
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Path to Instamart Profitability
Swiggy’s Instamart business — once criticized for burning cash — is now showing signs of real discipline. With competitive pressure easing and new dark-store expansion slowing down, the company is focusing on making its existing network more efficient rather than expanding aggressively.
That’s helping margins recover faster than expected. MOFSL believes Instamart could achieve breakeven sooner, thanks to this shift in strategy.
Smart Valuation and Forward Momentum
Motilal Oswal values Swiggy’s food delivery business at 35x FY27E EBITDA, while applying a discounted cash flow (DCF) model for Instamart. In simple terms — the numbers look solid enough to back the bullish call.
The brokerage also bumped up its profitability projections for Swiggy, citing faster-than-expected improvement across both verticals.
At ₹435.65 per share, Swiggy’s stock may look steady now, but if MOFSL’s projections play out, the next few quarters could bring strong re-ratings from investors.
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Why It Matters
This upgrade isn’t just about one stock — it’s about a broader shift in how India’s new-age tech firms are being valued. The focus has moved from “growth at any cost” to smart, profitable growth.
For Swiggy, that shift seems to be paying off. With leaner operations, better cost discipline, and a stronger AOV trend, the company appears well on track to sustain its comeback
