First Read Swiggy Ltd Q1FY27: CM Milestone Achieved in QC, Re-pivoting to Growth

Research evidence excerpt

First Read Swiggy Ltd Q1FY27: CM Milestone Achieved in QC, Re-pivoting to Growth

on Swiggy, indicating encouraging early product-market fit. 03/29E 0.70 3.05

Has the company's outlook/guidance changed? Navin Killa

AnalystFD: Management reiterated 18-20% GOV growth and medium-term margin target of

navin.killa@ubs.com

5%. QoQ margin decline in Q1FY27 was seasonal, reflecting delivery partner availability

+852-2971 7594

and annual wage revisions. QC: a) Management expects CM to remain within -1% to

0% for next few quarters while accelerating sequential growth, with the latest four- Ajay Raj Choudhary

Associate Analystweek NOV growth improving to 10% from 1% in preceding four weeks. b) More than

ajay-raj.choudhary@ubs.com

45% of stores were CM positive vs 30% in Q4FY26, 25% of the network generated 3- +91-20-3055 5000

5% CM, and 5 of the top 7 cities were CM positive. c) Adj. EBITDA breakeven is

expected at Rs600bn annualised NOV and 250-300mn quarterly orders versus 115mn in Aditya Chandrasekar

Analyst

Q1FY27, with 5-6% CM or cRs30 contribution per order. This will include: Rs10 from

aditya.chandrasekar@ubs.com

higher gross margins, Rs10 from ads, Rs5 from densification and automation and Rs5 +91-22-6155 6056

from operating leverage. d) An inventory-led model could add Rs4-5 per order (c80bps).

e) Medium-term QC ambition of >Rs1,000bn NOV at a 4-5% margin.

Valuation: Maintain Buy with a PT of Rs355

Overall results were weaker than expected, with FD modestly below estimates and QC

GOV 5-6% below UBSe/cons. Refer our recent detailed note on the QC sector.

Highlights (Rsm) 03/24 03/25 03/26 03/27E 03/28E 03/29E 03/30E 03/31E

Revenues 112,474 152,268 230,530 315,440 391,170 466,136 541,498 613,380

EBIT (UBS) (22,562) (25,243) (40,890) (28,429) (16,637) 74 14,803 29,474