Swiggy Q1 Results Preview: Strong Revenue Growth, Narrowing Losses Expected
Swiggy Ltd., the Indian food delivery and quick commerce giant, is set to announce its financial results for the first quarter of the financial year ending March 2026 on Thursday. Analysts are expecting strong revenue growth and narrowing losses for the quarter under review.
Strong Revenue Growth Expected
Brokerages collectively foresee Swiggy’s food delivery business maintaining robust growth, supported by steady user growth and initiatives like the 10-minute delivery service Bolt. Overall revenue growth for Swiggy is expected to be strong, with the company aiming for operational profitability by late 2025 or early 2026.
Narrowing Losses Expected
Despite ongoing losses, brokerages generally remain optimistic about Swiggy’s ability to balance growth and profitability. Revenue is expected to grow 51.4% higher at Rs 4,879 crore, while Ebitda is seen at a loss of Rs 804.4 crore, and net loss is expected at Rs 931.9 crore.
Key Expectations
For food delivery, JPMorgan expects gross order volume growth of 9% sequentially and 17% annually. For quick commerce, growth is expected to slow with about 150 new stores. Overall cash outflows are expected to decrease due to lower capital expenditure and working capital needs this quarter, according to JPMorgan.
Brokerage Views
JPMorgan lowered the price target from Rs 540 to Rs 500 but kept the recommendation ‘overweight.’ JPMorgan believes Swiggy is improving across both food delivery and quick commerce, focusing on execution and gaining scale.
JM Financial expects Swiggy’s Food Delivery gross order volume to grow about 9% quarter-on-quarter and 18% year-on-year. Monthly transacting users are forecast to rise to 16.4 million, while average order values dip slightly by about 1% sequentially.
UBS estimates Swiggy’s food delivery gross merchandise value growth at 17% annually, steady and in line with last quarter’s 16-17% growth. Growth is supported by low-average order value market expansion initiatives like Bolt.
HDFC Securities expects strong year-on-year growth for new-age businesses like Swiggy, with revenue growth in the range of 24-60%. For Swiggy, adjusted revenue is projected to grow 48.5% in the quarter, reaching Rs 5,160 crore.
Key Areas to Watch
Key areas to watch include MTU growth in food delivery and the trajectory of platform-funded discounts, especially in quick commerce.
Conclusion
Swiggy’s Q1 results are expected to be a significant event in the Indian food delivery and quick commerce space. With strong revenue growth and narrowing losses expected, the company is likely to continue its growth trajectory. Investors and traders should keep a close eye on the company’s performance and the broader impact on the Indian stock market.