Swiggy

Swiggy has announced its aim to achieve profitability by the June 2026 quarter. The company stated it can double its business without requiring major store investments, indicating a focus on scaling operations efficiently through existing infrastructure.

India's food delivery market has matured with growth normalizing to 17-18% GMV from earlier 25%, according to Karan Taurani of Elara Capital. Revenue and EBITDA growth are converging with margins stabilizing around 25-28% from previous 40%+ CAGR levels. Swiggy and Zomato continue their market dominance with no major new entrants challenging their duopoly. Quick commerce expansion and aggressive capital burn are pushing profitability for both companies beyond FY27. Taurani believes Eternal and Blinkit have struck a better balance in growth versus losses. Swiggy's Q1 FY27 breakeven guidance appears achievable from contribution margin perspective, with stock expected to remain range-bound between ₹400-₹470. Reliance's entry into quick commerce through dark stores and JioMart expansion is unlikely to disrupt market leaders due to scale and consumer experience challenges. In the alcoholic beverages sector, Taurani remains bullish on Radico Khaitan, citing strong innovation pipeline and high-margin premium portfolio with P&A segment contributing over 80% of revenue and growing at 20%+. United Breweries faces pressure in regular beer segment with weak volume growth, while United Spirits shows slower 12% growth.

Swiggy reported quarterly results with B2C GOV reaching INR 16,683 Cr (47.6% YoY growth) and consolidated adjusted revenue of INR 5,911 Cr (52.6% YoY growth). Food delivery segment achieved GOV of INR 8,542 Cr (18.8% YoY) with adjusted EBITDA margin improving to 2.8%. Quick-commerce business delivered strong performance with GOV of INR 7,022 Cr (107.6% YoY growth) and average order value reaching INR 697 (40% YoY). The company added 40 dark stores to reach 1,102 stores across 128 cities. Platform monthly transacting users grew 34% YoY to 22.9 million. Consolidated adjusted EBITDA loss was INR 695 Cr, improving from INR 813 Cr in Q1. The company announced plans to sell its 12% stake in Rapido for INR 2,400 Cr and the Board will consider fundraising up to INR 10,000 Cr through QIP route.