Investment research firm Macquarie has maintained its 'Underperform' rating on Swiggy , setting a price target of ₹290.00 for the food delivery and quick commerce platform.

Analyst Rating Details

The maintained rating reflects Macquarie's cautious stance on the stock's near-term performance prospects. An 'Underperform' rating typically indicates that analysts expect the stock to perform below broader market indices or sector peers.

Market Context

Swiggy operates in the highly competitive food delivery and quick commerce space, where companies continue to invest heavily in market expansion and customer acquisition. The maintained rating suggests that Macquarie's analysts see limited upside potential in the stock at current levels.

The ₹290.00 price target provides investors with Macquarie's assessment of the stock's fair value based on their analysis of the company's fundamentals and market position.

Swiggy , the popular food delivery platform, has reported a mixed bag of financial results for the second quarter of fiscal year 2026. While the company saw a significant increase in revenue, it also faced widening losses. Let's dive into the key highlights of Swiggy's performance and recent developments.

Revenue Growth and Financial Performance

Swiggy's revenue for Q2 FY26 showed impressive growth:

The company's revenue surge of 54.43% year-over-year demonstrates strong market traction and growing user base. However, the net loss widened significantly, indicating ongoing challenges in achieving profitability.

Operational Highlights

• EBITDA: The company reported an EBITDA of -₹740.00 crore for Q2 FY26, compared to -₹472.00 crore in the same quarter last year, showing an increase in operational losses.
• Operating Profit Margin (OPM): Swiggy's OPM improved slightly to -14.37% in Q2 FY26 from -15.47% in Q2 FY25, suggesting some progress in operational efficiency.
• Expenses: Total expenses rose to ₹6,360.00 crore in Q2 FY26, up 52.96% from ₹4,158.00 crore in Q2 FY25, reflecting the costs associated with rapid expansion and market competition.

Strategic Developments

1. Qualified Institutional Placement (QIP): Swiggy's Board has approved financial statements for a proposed ₹10,000.00 crore qualified institutional placement, indicating plans for significant capital raising.

2. Rapido Investment Sale: The company recorded a comprehensive income gain of ₹1,350.00 crore from its planned sale of investment in Rapido. This move could provide Swiggy with additional liquidity and help streamline its investment portfolio.

Market Position and Future Outlook

Despite the widening losses, Swiggy's substantial revenue growth suggests a strong market position and increasing consumer adoption of food delivery services. The company's focus on expansion and strategic moves like the QIP and investment sales indicate a long-term growth strategy.

However, the path to profitability remains a key challenge for Swiggy. The company will need to balance its growth initiatives with cost management to improve its bottom line in the coming quarters.

Investor Considerations

• Growth Potential: The robust revenue growth showcases Swiggy's market strength and potential for further expansion.
• Profitability Concerns: The widening losses highlight the need for effective cost management and operational efficiency improvements.
• Strategic Initiatives: The planned QIP and investment sales demonstrate proactive measures to strengthen the company's financial position.

As Swiggy continues to navigate the competitive food delivery landscape, investors should closely monitor its progress in achieving operational efficiency and moving towards profitability while maintaining its growth trajectory.