Swiggy reported net revenue of ₹68.1 billion for the first quarter of FY27, a rise of 6.8% year‑over‑year and 37.5% quarter‑over‑quarter. This figure exceeded analysts’ estimate of ₹65.5 billion.
The core food‑delivery segment saw its gross operating volume grow 17.4% compared to the same period last year. However, the contribution margin slipped 20 basis points quarter‑over‑quarter, settling at 7.6%.
Adjusted EBITDA as a percentage of gross operating volume for the food‑delivery business fell 20 basis points to 3.1%, slightly above the expected 3.0%.
Valuation metrics were updated: the food‑delivery arm is valued at 30 times FY28 projected EV/EBITDA, while the out‑of‑home, platform, and supply‑chain units are priced at 1 times FY28 projected EV/Sales. A discounted‑cash‑flow model backs the overall company valuation.
The target price has been revised to ₹350, indicating an 18% upside from the previous level.
Overall, Swiggy’s stronger revenue growth is tempered by margin pressure, but the revised valuation reflects confidence in its long‑term growth prospects.