Emkay keeps Buy on Swiggy but cuts target to Rs 310 on rising losses

what happened

Analysts at Emkay Global Financial, as reported by TradingView, kept their Buy rating on Swiggy and cut the target price by about 11%, to Rs 310 from Rs 350. Swiggy's results for the second quarter of FY27 were broadly in line with expectations but trailed Eternal. Qcom NOV grew 13.4% quarter on quarter, against 22.2% at Eternal. Food Delivery GOV rose 17.7% year on year, while Eternal's NOV grew 21.5%.

Food Delivery adjusted EBITDA climbed 41.8% year on year to Rs 3.41 bn. InstaMart's adjusted EBITDA losses widened to Rs 8.95 bn from Rs 7.78 bn in the first quarter. Management said losses have peaked this quarter and that the business can break even at 2.3 times its current scale. Losses in Platform Innovation, which houses Toing, rose to Rs 1.62 bn from Rs 1.31 bn.

Analysts raised their Qcom adjusted EBITDA loss estimates for FY27 and FY28 by 4.6% and 16.7%, and the target cut was driven mainly by lower valuations for the Qcom business. They said scale, a sustained improvement in order per day per store and higher take rates would be needed to support its value.

why it matters

For markets, the report signals that Swiggy is not yet profitable in its fast-growing businesses, so investors will look for confirmation that losses have peaked in upcoming results. Keeping the Buy rating while lowering the target suggests the analysts still see upside, but with more caution.

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