Buy Swiggy; target of Rs 740: ICICI Securities

ICICI Securities is bullish on Swiggy has recommended buy rating on the stock with a target price of Rs 740 in its research report dated October 31, 2025.

Broker Research

October 31, 2025 / 15:25 IST

BUY

26 Aug, 2025 12:21

Volume

Todays L/H

ICICI Securities's research report on Swiggy

In food delivery, GOV grew 18.8% YoY and adj. revenue grew 22% YoY, indicating possible share gains despite increasing competitive intensity. In quick commerce (QC), GOV grew 24.2% QoQ (up from Q1FY26’s trend of 21.1% QoQ). This was led by growth across no. of orders and AOV. 13.9% QoQ growth in AOV was notably higher than our estimates. We think, this is due to Instamart’s strong execution on assortment, further underlined by a strong improvement in customer spends as cohorts mature (> 2x jump in customer spends from Q0 to Q1). We also note, orders per day per store grew 4.1% QoQ in Q2FY26 to 1,025, as an indicator of improving store efficiency. We believe, the stock is likely to re-rate as investors gain comfort on execution in the QC business. Reiterate BUY and TP of INR 740.

Outlook

We maintain BUY on Swiggy with a three-stage DCF-based target price of INR 740. Risks: Slowdown in discretionary spending; and negative externalities disrupting business operations.

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