Swiggy’s Quick Commerce Growth Lags Behind Blinkit
Swiggy’s quick commerce business isn’t growing as fast as its competitor, Blinkit. While Swiggy’s food delivery business did well, its quick commerce gross order value (GOV) and monthly transacting users (MTU) grew by 15.5% and 13.4% respectively in the last quarter, reaching Rs 39 billion and 7 million. This is slower than Blinkit’s 27% and 19% growth during the same period.
Competition Impacts Swiggy’s Quick Commerce Business
The intense competition in the quick commerce [[market]] is impacting Swiggy. To attract customers, Swiggy has to spend more on incentives and acquisition costs. Investments in its network of dark stores, which are used to fulfill online orders quickly, are also adding to the expenses. These factors are contributing to the widening gap between Swiggy and Blinkit’s performance in the quick commerce segment.
Food Delivery Shows Strong Performance, but Quick Commerce Losses Widen
Despite strong growth in food delivery, Swiggy’s overall profits are being dragged down by the increasing losses in its quick commerce operations. Though both Swiggy’s Instamart and Blinkit maintained stable GOV density, Instamart’s losses have increased more significantly. The overall adjusted Ebitda losses are now estimated to be -Rs 15.8 billion and -Rs 12.3 billion for financial years 2026 and 2027, up from earlier estimates.
Analysts Maintain ‘Reduce’ Rating on Swiggy Stock
Financial analysts are not very positive about Swiggy’s stock right now and suggest reducing holdings. The target price for Swiggy’s stock is Rs 455 per share, based on the company’s expected future performance. This price suggests a valuation of around four times the enterprise value to sales ratio for financial year 2027. The slower growth in quick commerce compared to competitors like Blinkit is a major concern. While Swiggy’s food delivery business remains strong, the quick commerce segment needs to catch up for overall financial success.
Expert Analysis from Top Brokerages
This [[news]], based on in-depth research reports, provides valuable insights into Swiggy’s performance. These reports from top brokerages, asset managers, and research agencies offer a detailed understanding of the business, market trends, and financial outlook.
