Motilal Oswal says 'Buy' Swiggy shares, sees 26% upside target; here's why

Swiggy's pivot from an earlier land-grab phase to a more cost-conscious operating model, analysts said, should continue to drive margin expansion and strengthen overall financial resilience

Analysts at Motilal Oswal Financial Services Ltd (MOFSL) remain bullish on food delivery platform Swiggy and have maintained their ‘Buy’ rating on the stock, citing that the company is entering a phase of sustainable profitability supported by tighter operational discipline and improving network efficiency. In a note released earlier in September 2025, MOFSL had upgraded Swiggy to a ‘Buy’, citing an inflection in the growth trajectory of its food delivery (FD) business and a marked improvement in the unit economics of its quick commerce (QC) vertical, Instamart.

 

Amidst this, Swiggy shares started the week’s first trading session on a flat note at ₹435.45 per share on the BSE, the same as the previous close. At 9:33 AM on Monday, October 13, Swiggy’s shares were trading with a marginal gain of 0.05 per cent at ₹435.65 per share on the BSE. The total market capitalisation of the retail player stood at ₹1,08,635 crore on the BSE.

 

Analysts at MOFSL have recommended that investors buy Swiggy shares with a target price of ₹550, implying an upside potential of around 26 per cent from current levels.

 

Here’s why Motilal Oswal remains bullish on Swiggy

Abhishek Pathak, Tushar Dhonde, and Keval Bhagat — research analysts at MOFSL — believe that the combination of steady FD growth, rising Instamart average order value (AOV), and easing fixed-cost pressures enhances the visibility of positive unit economics in the quarters ahead.

 

“Steady improvements in AOV, dark-store throughput, and take rates could lead to a material re-rating in profitability, prompting a more constructive stance on the stock,” the analysts wrote in a research note.

 

They added that with competitive intensity easing and dark-store expansion on pause, the path to breakeven for Instamart appears increasingly achievable. The company’s strategy of optimising its existing infrastructure while selectively adding new dark stores should aid margin expansion and steady growth.

 

MOFSL values Swiggy’s food delivery business at 35x FY27E adjusted earnings before interest, taxes, depreciation, and amortisation (Ebitda) and has applied a discounted cash flow (DCF) approach to the quick commerce segment. The brokerage has also advanced its profitability assumptions for Instamart, reflecting faster-than-expected improvements in operational metrics.

 

Swiggy’s pivot from an earlier land-grab phase to a more cost-conscious operating model, according to the analysts, should continue to drive margin expansion and strengthen overall financial resilience.