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Motilal Oswal has given a “Buy” rating on Swiggy with a target price of ₹550.
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Swiggy share price is expected to gain from strong food delivery growth and improved quick commerce margins.
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The brokerage sees 26% potential upside driven by better execution and cost efficiency.
Swiggy Share Price: Motilal Oswal Maintains ‘Buy’ Rating with ₹550 Target
Leading brokerage firm Motilal Oswal has reiterated its ‘Buy’ recommendation on Swiggy share price, setting a target price of ₹550 in its latest research report released on October 11, 2025. The firm believes that Swiggy is at a turning point, supported by strong performance in its food delivery and quick commerce (Instamart) businesses.
According to Motilal Oswal, Swiggy’s revenue trajectory and operational efficiency have improved significantly, indicating that the company is moving closer to profitability. The brokerage expects a 26% upside potential, driven by enhanced unit economics and rising customer spending.
Motilal Oswal: Why Swiggy’s Business Model is Gaining Strength
Motilal Oswal noted that Swiggy’s food delivery segment continues to benefit from stable order volumes, growing restaurant partnerships, and increasing average order values (AOV). Additionally, the company’s quick commerce arm, Instamart, has shown an encouraging turnaround, with improved cost management and stronger delivery networks.
The report emphasizes that Swiggy’s management has optimized resources, cutting back on unnecessary expansion and focusing on profitability. The company has slowed down the rollout of new dark stores and instead prioritized optimizing its existing infrastructure to enhance coverage and delivery efficiency.
These strategic moves have made Swiggy’s operations more sustainable and positioned the company for consistent growth in both urban and tier-2 markets.
Swiggy Share Price: Improving Profitability and Competitive Advantage
In its detailed analysis, Motilal Oswal highlighted that Swiggy share price could see a steady rise as the company’s quick commerce and food delivery units achieve better cost efficiency. The report mentions that Swiggy’s average order value (AOV) in quick commerce has been improving, while customer acquisition costs are reducing due to repeat usage and stronger brand loyalty.
Furthermore, the competitive intensity in the food delivery sector has softened. With Zomato focusing more on premium customers and international expansion, Swiggy has been able to strengthen its market share in India’s mass and mid-premium food delivery segments.
Motilal Oswal added that the pause in dark store expansion and focus on operational improvement are key steps toward achieving breakeven earlier than previously expected.
Motilal Oswal: Valuation Based on Food Delivery and Quick Commerce Potential
Motilal Oswal’s report on Swiggy uses a sum-of-the-parts valuation approach. The brokerage has valued the food delivery business at 35x FY27E adjusted EBITDA, while the quick commerce business (Instamart) has been valued using a discounted cash flow (DCF) method.
The brokerage has also revised its profitability assumptions for Instamart, expecting the segment to reach operational breakeven sooner than earlier projected. Motilal Oswal believes that Swiggy’s long-term focus on unit economics, infrastructure optimization, and user engagement makes it one of the strongest digital consumer platforms in India’s internet space.
The target price of ₹550 reflects a 26% potential upside from current levels, supported by sustained growth in both major business arms.
Swiggy Share Price: Riding on Digital Consumption Growth
According to Motilal Oswal, the Swiggy share price is likely to benefit from India’s booming digital consumption trends. The country’s food delivery and quick commerce markets are expanding rapidly as consumers increasingly prefer convenience, time savings, and doorstep delivery.
Swiggy’s continued investment in AI-driven recommendations, efficient delivery routes, and loyalty programs is expected to further improve customer retention. The brokerage also notes that Swiggy’s partnerships with leading restaurants, grocery brands, and dark store operators ensure a solid foundation for long-term scalability.
Motilal Oswal highlighted that as consumer sentiment stabilizes and discretionary spending increases, Swiggy could see a sharp improvement in revenue visibility and profitability over the next two fiscal years.
Motilal Oswal: Outlook for Investors
The Motilal Oswal report concludes that Swiggy is entering a new phase of sustainable and profitable growth. With its diversified revenue streams, disciplined expansion, and focus on technology, Swiggy is well-positioned to capitalize on India’s growing appetite for convenience-driven consumption.
Investors looking for exposure to the digital consumer space can consider Swiggy as a long-term investment opportunity. While short-term fluctuations are possible, Motilal Oswal believes the company’s strong fundamentals, brand recall, and operational efficiency will drive steady returns.
The firm maintains its “Buy” rating with a target price of ₹550, reaffirming confidence in Swiggy’s long-term potential and execution capability.
