Now Reading: Swiggy narrows Q2 loss but Motilal Oswal cuts target on slow growth
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Swiggy narrows Q2 loss but Motilal Oswal cuts target on slow growth
Swiggy narrows Q2 loss but Motilal Oswal cuts target on slow growth
The Story in Brief
Swiggy reported a 36% year-on-year increase in operating revenue to Rs 7,571 crore for the September quarter, with net loss narrowing 16% to Rs 922 crore from Rs 1,092 crore a year earlier. Adjusted Ebitda loss, however, widened to Rs 760 crore from Rs 695 crore. Quick-commerce unit Instamart’s GOV rose 31% to Rs 9,230 crore but added only 97 dark stores, compared with 508 added by Blinkit, which also reported higher orders per dark store.
Brokerage Motilal Oswal cut its price target on Swiggy to Rs 280 from Rs 360, implying a 32% upside from Thursday’s close of Rs 211.4, below the IPO price of Rs 390. The firm cited slower growth than Eternal on both food delivery and quick commerce, and said Instamart currently carries negative value in its cash-flow analysis. Swiggy plans to transition Instamart to an inventory model from the current marketplace model during the third quarter. Of 30 analysts covering the stock, 23 have a ‘buy’ rating, four ‘hold’, and three ‘sell’.
Indian Opinion Analysis
Both outlets report Swiggy’s Q2 results factually, but their editorial choices differ sharply. CNBC-TV18 leads with Motilal Oswal’s price-target cut and highlights Instamart’s negative discounted-cash-flow value and slower store additions versus Blinkit, framing the story around a longer path to profitability. Economic Times leads with the narrowing of Swiggy’s net loss and gives a detailed financial table, including revenue growth and the shift to an inventory model, which CNBC-TV18 omits. CNBC-TV18 foregrounds brokerage scepticism on quick-commerce and competitive intensity, while ET includes CEO Majety’s comment that Swiggy’s first job is to build a stable business with a path to Ebitda zero. ET also adds a separate, unrelated story on eMudhra, diluting the Swiggy focus. The balanced reading: Swiggy narrowed losses but faces slower growth in quick commerce than its main rival, with analysts divided, 23 of 30 still have a ‘buy’.
Coverage: 2 sources, 2 neutral
Sources (2): cnbctv18.com (neutral report), economictimes.indiatimes.com (neutral report)
This brief was synthesised by AI from the 2 sources linked above, so one read covers every framing they carry. Methodology and corrections.
