Swiggy Ltd. share price target

Swiggy delivered a revenue of INR61.5b in 3QFY26 (up 54.6% YoY) vs. our estimate of INR57.7b. The food delivery (FD) business’s GOV grew 20.5% YoY, whereas the contribution margin (CM) remained improved 30bp QoQ at 7.6%.

In food delivery, GOV grew 18.8% YoY and adj. revenue grew 22% YoY, indicating possible share gains despite increasing competitive intensity.

We upgraded Swiggy to BUY (see our report dated, 4th September, Internet: A buffet of tailwinds), reflecting an inflection in growth of the food delivery (FD) business and improved unit economics in the quick commerce (QC) business.

The strong FD performance (+17.6% y/y GOV growth vs. Zomato’s 15.9% y/y) indicates some market-share gain for Swiggy, largely due to the ~10-15-minute delivery initiative ‘Bolt’ (now constituting 12%+ overall volumes vs. ~9% in Q3 FY25).

In FD, we estimate Swiggy to have gained market share of ~30bps on GOV basis and ~50bps on MTU basis. This is broadly in line with our survey findings.

Swiggy delivered a revenue of INR39.9b in 3QFY25 (up 11% QoQ) vs. our estimate of INR38.9b. The food delivery (FD) business’s GOV grew 19.2% YoY, whereas the contribution margin was 7.4%, recording 80bp QoQ expansion.

IPO Note - Swiggy Limited Issue Snapshot: Issue Open: November 6 November 8, 2024 Price Band: Rs. 371 390 (Employee discount of Rs 25 per share) *Issue Size: Up to Rs 11327 cr (Fresh issue of up to Rs 4499 cr + Offer for sale of Up to 175,087,863 eq sh) Reservation for: QIB atleast 75% eq sh Non-Institutional upto 15% eq sh Retail upto 10% eq sh Face Value: Rs 1 Book value: Rs 33.61 (June 30, 2024) Bid size: - 38 equity shares and in multiples thereof 100% Book built Issue

IPO NOTE