Swiggy Shares Jump 5% As Company Unveils FY31 Roadmap, Targets ₹10,000 Crore Adjusted EBITDA
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Swiggy shares surged on Thursday as the company unveiled an ambitious FY31 growth roadmap, eyeing a threefold jump in GOV and a sharp climb in profitability.
Shares of Swiggy Ltd rose as much as 5.2% on Thursday, August 6, touching an intraday high of ₹305 on the NSE after the company unveiled its five-year growth strategy at its Capital Markets Day 2026. The stock later trimmed gains and was trading around 2.5% higher at ₹297 by late morning. Despite the rally, the stock remains below its IPO price of ₹390.
The Bengaluru-based company has set a target of ₹10,000 crore in consolidated adjusted EBITDA by FY31, supported by plans to more than triple its Gross Order Value (GOV) to around ₹2.5 lakh crore from ₹67,734 crore in FY26. The company expects consolidated GOV to grow at a compound annual growth rate (CAGR) of more than 30% over the next five years, alongside improving profitability.
Managing Director and Group CEO Sriharsha Majety said the company remains confident of achieving its long-term profitability target, backed by strong business fundamentals. He said Swiggy continues to focus on solving large consumer problems across food delivery, quick commerce and out-of-home consumption, which he believes offer significant long-term growth opportunities.
Food delivery is expected to remain Swiggy's largest earnings contributor. The company expects the segment to generate nearly ₹5,000 crore in adjusted EBITDA by FY31, with GOV projected to grow between 2.5 times and 3.5 times over the period. Swiggy said initiatives such as its affordability platform Toing and efforts to increase ordering frequency are expected to support growth.
The company also highlighted the significant opportunity in India's food services market, which it expects to expand from around $90 billion in 2026 to nearly $150 billion by 2031. It added that almost 70% of users currently order food less than once a month, leaving ample room for higher consumption.
Quick commerce business Instamart has been assigned an even more ambitious target. Swiggy expects Instamart's GOV to exceed ₹1.5 lakh crore by FY31, compared with ₹28,000 crore in FY26. The company expects the platform to serve more than 40 million monthly transacting users while continuing to improve profitability.
Swiggy said Instamart has already narrowed its contribution margin loss to 0.2% of GOV. More than 45% of its dark stores are now contribution-margin positive, while five of its seven largest cities have already turned profitable at the contribution level.
Its dining and restaurant discovery platform Dineout, which reported its first full year of positive adjusted EBITDA in FY26, is expected to grow GOV around fivefold to ₹20,000-25,000 crore by FY31. Swiggy has also set an adjusted EBITDA target of ₹1,000 crore for the business by the end of the period.
The long-term roadmap comes after Swiggy reported strong revenue growth in the June quarter. Consolidated revenue increased 37.3% year-on-year to ₹6,812 crore, while the company's net loss narrowed to ₹791 crore from ₹1,197 crore a year earlier.
Food delivery GOV rose 17.4% year-on-year to ₹9,490 crore, with segment adjusted EBITDA increasing to ₹292 crore and margins expanding to 3.1%. Instamart's GOV grew 39.8% to ₹7,907 crore during the quarter, while the business achieved contribution break-even in May, with contribution margin improving to negative 0.2%.
Should You Buy, Sell Or Hold Swiggy Shares?
According to Kotak Neo Research, Swiggy's June quarter performance was mixed. Food delivery GOV growth of 17% year-on-year came in around 2% below estimates, while Instamart's net order value grew 40% year-on-year and 3.1% sequentially.
The research firm noted that Instamart's contribution margin improved significantly to negative 0.3% of net order value in the June quarter from negative 2.5% in the March quarter. However, the business reported an EBITDA loss of ₹780 crore, which was higher than its estimates.
Kotak retained its BUY rating on Swiggy with a fair value of ₹370. The brokerage has raised its Instamart net order value estimates by 5-6% for FY27-FY29 while also factoring in higher investment-led losses. It believes a tighter funding environment for competitors could strengthen Swiggy's competitive position over the medium term.
The research note also expects Swiggy's revenue to grow at a CAGR of around 25% between FY26 and FY29 and highlighted that the company had a cash balance of around ₹14,400 crore as of June 2026.
Looking ahead, Swiggy expects consolidated adjusted EBITDA margins to reach around 4% of GOV by FY31. The company also projects earnings per share to improve from a loss of ₹16 in FY26 to ₹30-33 by FY31 while maintaining a debt-free balance sheet.
Swiggy's long-term strategy comes as it continues to expand its quick commerce business amid intensifying competition from rivals including Blinkit, owned by Eternal, and Zepto, while aiming to improve profitability across all its business segments.
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This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, visit www.kotakneo.com/disclaimer.
Rochelle Britto is a business journalist with 8+ years of experience in financial journalism. She covers equity markets, corporate earnings, IPOs, commodities and the economy.
As a reporter with leading business publications, she has tracked financial markets and covered sectors including banking and financial services, retail, consumer goods, advertising and e-commerce.
Outside work, she enjoys travelling, discovering local cultures and spending time in nature.
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