Swiggy Ltd
Swiggy Ltd
Consumer Discretionary F&OFounded in 2014, Swiggy Ltd is a new-age, consumer-first technology company offering users an easy-to-use convenience platform, accessible through a unified app.[1]
Swiggy shows exceptional revenue growth at 51% TTM and strong analyst support with 75% buy ratings, but persistent losses (PE of -17), deteriorating working capital (117 days vs 46.4 days earlier), and a 35% stock decline over 1 year warrant caution until a clear path to profitability emerges.
Key Fundamentals
MidcapEcommerceRetailTechnical Indicators
Key Insights
Strengths
1- Company is expected to give good quarter
Weaknesses
4- Stock is trading at 3.68 times its book value
- Company has low interest coverage ratio.
- Debtor days have increased from 51.5 to 64.1 days.
- Working capital days have increased from 46.4 days to 117 days
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 3d agoSwiggy shows exceptional revenue growth at 51% TTM and strong analyst support with 75% buy ratings, but persistent losses (PE of -17), deteriorating working capital (117 days vs 46.4 days earlier), and a 35% stock decline over 1 year warrant caution until a clear path to profitability emerges.
- Revenue growing at 51% TTM compounded sales growth, demonstrating strong top-line momentum in a large addressable market
- 75% of analysts (21 out of 28) have a buy rating, reflecting broad institutional confidence in the business model
- 5-year compounded sales CAGR of 55% shows sustained hyper-growth trajectory over a longer horizon
- 3-year compounded sales CAGR of 41% indicates consistent demand acceleration even post-pandemic
- Market cap of Rs 70,719 Cr provides scale advantages and liquidity for institutional investors
- Company is expected to deliver a good upcoming quarter, suggesting near-term operational improvement
- Losses narrowing implied by compounded profit growth of 0% over 3 years vs deeply negative base, indicating loss stabilization trajectory
- Stock has declined 35% over the past 1 year, destroying significant shareholder value since listing
- Negative PE of -17 confirms the company remains loss-making with no near-term profitability visibility
- Working capital days have surged from 46.4 to 117 days, a 152% deterioration signaling cash flow stress
- ROE of -29% last year reflects continued value destruction for equity shareholders
- Debtor days increased from 51.5 to 64.1 days, a 24% rise indicating weakening collection efficiency
- Trading at 3.85x book value despite being loss-making, suggesting expensive valuation relative to tangible assets
- Zero dividend yield with no visibility on when capital return to shareholders could begin
- Low interest coverage ratio indicates operating earnings are insufficient to comfortably service debt obligations
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 14h ago- Slow Instamart store expansion May 28
Swiggy added only 7 dark stores in Q4FY25, bringing total to 1,143, while rivals like Blinkit grew MTU 15% Q-o-Q versus Swiggy's 4%. JM Financial warned the firm risks losing relevance if it cedes momentum in quick commerce.
- Stock down 30%+ in 2025 May 28
Swiggy shares have fallen more than 30% this year, with investors remaining unconvinced on the bridge to growth and profitability at Instamart. A shareholder vote on governance restructuring narrowly failed earlier this month.
- Intense competitive spending war May 28
Flipkart, Amazon, Walmart's local arm, and Reliance Retail are intensifying efforts to deliver in as fast as 10 minutes with expanded discounts. Blinkit's CEO warned of an industry shakeout as weaker rivals struggle to sustain losses.
- Restaurant margin dissatisfaction May 27
Platforms charge commissions of 15-30% per order (up to 30-40% with fees), while restaurants operate on 10-20% net margins. 40% of restaurants report quality issues like spillage and temperature loss during transit.
- Projected ₹2,100 Cr qcom cash burn May 27
Swiggy expects cash burn of ₹2,100 crore in quick commerce in FY27, offsetting food delivery's projected free cash flow of ₹1,400-2,200 crore in FY27-FY28.
- Food delivery growth beats guidance May 27
MTU grew 21% Y-o-Y to 18.3 million (above 18-20% guidance), adjusted EBITDA grew 39.8% Y-o-Y to ₹300 crore, and food delivery growth hit its strongest pace in nearly four years in Q4FY25.
- Unit economics steadily improving May 28
Instamart improved unit economics by 5-6 percentage points over the past four quarters. Food delivery contribution margin improved 20 bps Q-o-Q to 7.8%, with NOV-to-GOV ratio rising to 72% from 69%.
- Strong cash reserves of ₹15,500 Cr May 27
Swiggy holds ₹15,500 crore in cash, providing runway to weather the competitive spending war without needing fresh fundraising. CEO stated capital will not be the reason to lose.
- Private-label differentiation strategy May 28
Swiggy is building a private-label grocery business focused on fresher, harder-to-source products like Indian cottage cheese and fresh clotted cream, differentiating from rivals competing purely on speed and discounts.
- Wallet feature reduces checkout friction May 28
New Swiggy Money wallet feature lets users add up to ₹50 shortfall to wallet instead of buying filler items, securing future spending with 1-year validity. Live in Bengaluru, Mumbai and Delhi-NCR.
- ₹323 Cr block trade executed Jun 24
A block trade of ~1.31 crore shares at ₹245.80 per share worth ₹322.84 crore was executed on BSE, likely an institutional rebalancing transaction.
- Capital Markets Day on Aug 6 Jun 16
Swiggy will host an invite-only Capital Markets Day on August 6, 2026 in Mumbai for institutional investors and analysts.
- June investor meetings cancelled Jun 4
Swiggy cancelled scheduled June 2026 investor meetings including Kotak India Corporate Day in Singapore and IIFL's Invest India Conference in London, citing exigencies.
TL;DR: Swiggy's food delivery business is performing well with 21% MTU growth and improving profitability, but Instamart's slow expansion (only 7 stores added) amid an aggressive competitive landscape from Blinkit, Flipkart, and Amazon is the key concern. The CEO is deliberately choosing profitability over growth, which has improved unit economics but risks market share loss. With ₹15,500 crore in cash and a Capital Markets Day in August, the next quarter will be critical to demonstrate whether disciplined spending can coexist with re-accelerating quick commerce growth.
Quarterly Results
| Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 2,390 | 2,763 | 3,049 | 3,046 | 3,222 | 3,601 | 3,992 | 4,410 | 4,961 | 5,561 | 6,148 | 6,383 |
| Expenses | 2,964 | 3,387 | 3,575 | 3,536 | 3,766 | 4,155 | 4,718 | 5,374 | 5,916 | 6,360 | 6,931 | 7,081 |
| Operating Profit | -575 | -624 | -526 | -490 | -544 | -554 | -726 | -964 | -955 | -799 | -783 | -698 |
| OPM % | -24% | -23% | -17% | -16% | -17% | -15% | -18% | -22% | -19% | -14% | -13% | -11% |
| Other Income | 119 | 87 | 78 | 73 | 75 | 82 | 107 | 121 | 87 | 59 | 86 | 266 |
| Interest | 17 | 15 | 18 | 20 | 20 | 23 | 26 | 32 | 41 | 48 | 55 | 56 |
| Depreciation | 91 | 105 | 108 | 117 | 122 | 131 | 154 | 206 | 288 | 304 | 313 | 312 |
| PBT | -564 | -657 | -574 | -555 | -611 | -626 | -799 | -1,081 | -1,197 | -1,092 | -1,065 | -800 |
| Tax % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Net Profit | -564 | -657 | -574 | -555 | -611 | -626 | -799 | -1,081 | -1,197 | -1,092 | -1,065 | -800 |
| EPS in Rs | — | — | — | — | — | -62.75 | -3.57 | -4.73 | -4.8 | -4.38 | -3.86 | -2.9 |
Profit & Loss
| Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|
| Sales | 3,468 | 2,547 | 5,705 | 8,265 | 11,247 | 15,227 | 23,053 |
| Expenses | 7,292 | 3,843 | 9,355 | 12,538 | 13,447 | 18,015 | 26,288 |
| Operating Profit | -3,824 | -1,296 | -3,650 | -4,273 | -2,199 | -2,788 | -3,235 |
| OPM % | -110% | -51% | -64% | -52% | -20% | -18% | -14% |
| Other Income | 218 | -19 | 239 | 438 | 341 | 384 | 498 |
| Interest | 85 | 75 | 48 | 58 | 71 | 101 | 200 |
| Depreciation | 217 | 221 | 170 | 286 | 421 | 612 | 1,217 |
| PBT | -3,908 | -1,612 | -3,629 | -4,179 | -2,350 | -3,117 | -4,154 |
| Tax % | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Net Profit | -3,920 | -1,617 | -3,629 | -4,179 | -2,350 | -3,117 | -4,154 |
| EPS in Rs | — | — | — | — | — | -13.63 | -15.05 |
| Div. Payout % | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
Balance Sheet
| Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|
| Equity Capital | 0.88 | 0.01 | 0.86 | 3 | 3 | 229 | 261 |
| Reserves | 2,966 | 1,736 | -3,296 | -6,509 | -7,785 | 9,991 | 18,053 |
| Borrowings | 89 | 93 | 16,071 | 16,162 | 16,437 | 1,703 | 2,551 |
| Other Liabilities | 1,346 | 1,086 | 1,637 | 1,624 | 1,874 | 3,283 | 4,372 |
| Total Liabilities | 4,402 | 2,915 | 14,412 | 11,281 | 10,529 | 15,205 | 25,237 |
| Fixed Assets | 1,332 | 747 | 801 | 1,505 | 2,041 | 3,631 | 4,558 |
| CWIP | 9 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | 1,879 | 925 | 10,348 | 6,541 | 5,171 | 2,677 | 6,034 |
| Other Assets | 1,182 | 1,243 | 3,263 | 3,235 | 3,317 | 8,897 | 14,645 |
| Total Assets | 4,402 | 2,915 | 14,412 | 11,281 | 10,529 | 15,205 | 25,237 |
Cash Flow
| Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|
| Operating | -3,841 | -1,175 | -3,900 | -4,060 | -1,313 | -2,169 | -2,898 |
| Investing | 3,195 | 1,282 | -9,160 | 3,968 | 1,472 | -1,372 | -4,983 |
| Financing | 849 | 14 | 13,634 | -172 | -123 | 3,903 | 9,397 |
| Net Cash Flow | 202 | 120 | 574 | -264 | 37 | 361 | 1,516 |
| Free Cash Flow | -4,175 | -915 | -4,128 | -4,217 | -1,657 | -2,913 | -3,809 |
| CFO/OP | 99 | 91 | 105 | 94 | 60 | 79 | 89 |
Ratios
| Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|
| Debtor Days | 13 | 24 | 71 | 47 | 31 | 59 | 64 |
| Inventory Days | 31 | 10 | 4 | 1 | 4 | 3 | 3 |
| Days Payable | 311 | 223 | 154 | 94 | 70 | 111 | 83 |
| Cash Conversion Cycle | -268 | -189 | -79 | -46 | -35 | -48 | -16 |
| Working Capital Days | -22 | -41 | 18 | 18 | 0 | 21 | 117 |
| ROCE % | — | -57% | -48% | -37% | -24% | -29% | -24% |
Documents
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Company Information
Founded in 2014, Swiggy Ltd is a new-age, consumer-first technology company offering users an easy-to-use convenience platform, accessible through a unified app.[1]