Neutral Swiggy; target of Rs 460: Motilal Oswal

Neutral

Motilal Oswal's research report on Swiggy

Swiggy delivered a revenue of INR39.9b in 3QFY25 (up 11% QoQ) vs. our estimate of INR38.9b. The food delivery (FD) business’s GOV grew 19.2% YoY, whereas the contribution margin was 7.4%, recording 80bp QoQ expansion. FD’s adjusted EBITDA as a % of GOV margin rose 90bp QoQ to 2.5%. Instamart’s GOV was INR39.0b (+88.1% YoY), which missed our estimate. The contribution margin dipped 270bp QoQ to -4.6%. Adjusted EBITDA as a % of GOV was -14.8% (-10.6% in 2Q), missing our estimate of -10.0%.

Outlook

Overall, Swiggy reported a net loss of INR8b, marking a 39% YoY increase. For 4QFY25, we expect revenue/adj. EBITDA loss to increase 7.0%/14.5% QoQ. Our DCF-based valuation of INR460 (INR520 earlier) suggests a 10% potential upside. We reiterate our Neutral rating on the stock.

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Swiggy - 06022025 - moti