Swiggy Limited

Consumer Cyclical — Internet Retail · NSE

₹234.30+₹5.30 (+2.31%)

DalalBaazaar Score

51 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, the company is currently loss-making, falling profits.

In simple words: The company is currently losing money, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:45 pm

Understanding the Business

Company site ↗

The 60-second version of Swiggy Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Swiggy Limited, together with its subsidiary, operates a convenience platform for accessing food and everyday essentials in India. It operates through Food Delivery, Out of Home Consumption, Quick-Commerce, Supply Chain and Distribution, and Platform Innovations segments.

IndustryInternet Retail

SectorConsumer Cyclical

Employees5,321

Annual revenue₹22,828 Cr

How does it make money?

Turns over ₹22,828 Cr a year. Of every ₹100 of sales, about ₹-18 reaches shareholders as profit, with ₹-12 left at the operating level before interest, tax and depreciation. Each of its 5,321 employees supports ₹4.29 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹4.29 Cr

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of -19.4% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE25.9%

What is the outlook?

23 analysts covering the stock expect revenue to grow about 28.1% and earnings to grow about 45.0% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+28.1%

Est. earnings growth+45.0%

Analysts23

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +180% while net margin moved -65% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+180%

Margin effect-65%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✓ ROE has improved by 23.5 points over the period

Quality vs. Valuation

Company Quality

55/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

29/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from -47.8% to -12.2% over 3 years.
Return on equity is rising
ROE has improved from -46.1% to -22.7%.
Return on capital is rising
ROCE has improved from -43.0% to -19.4%.
Very low debt
Debt/Equity of 0.14x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

6 items require attention · 6 high

🔴Debt has risen sharplyFinancial
Total debt is up 325% over 3 years, from ₹600 Cr to ₹2,551 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only -19.8x — little room if earnings dip.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴The company is lossmakingFinancial
Net profit of -₹4,154 Cr in the latest reported year.
🔴Receivables growing faster than salesFinancial
Receivables up 281% against revenue up 180% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 614% against revenue up 180% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -47.8% to -12.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 281% against revenue up 180%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Several serious flags at once
6 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 31% a year✓ 41.0% CAGR
Latest reported year was 37.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -14%✓ -12.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹3,817 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ -19.8x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 8%✗ -19.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 3 neutral · 6 weak

Market Cap

₹61,453 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

3.33x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹-15.25

Loss-making

Negative earnings per share — the business is losing money

ROE

-22.7%

Weak

Weak capital efficiency

ROCE

-19.4%

Weak

Low return on total capital employed

Debt/Equity

0.14x

Low

Conservative leverage

Revenue Growth (YoY)

37.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-33.3%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹3,817 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

-38.7x

Operating Margin

-13.9%

Weak

Thin margins leave little room for error

Net Margin

-15.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

3.35

Comfortable

Healthy short-term liquidity

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

249.7 / 267.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

25.3

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹8,138 Cr	₹11,073 Cr	₹15,046 Cr	₹22,828 Cr	+41.0%
EBITDA	-₹3,893 Cr	-₹1,838 Cr	-₹2,414 Cr	-₹2,774 Cr	—
EBITDA Margin	-47.8%	-16.6%	-16.0%	-12.2%	—
PAT (Net Profit)	-₹4,179 Cr	-₹2,350 Cr	-₹3,117 Cr	-₹4,154 Cr	—
EPS	₹-18.67	₹-10.5	₹-13.72	₹-16.87	—
ROE	-46.1%	-30.2%	-30.5%	-22.7%	—
ROCE	-43.0%	-27.1%	-26.0%	-19.4%	—
Total Debt	₹600 Cr	₹864 Cr	₹1,702 Cr	₹2,551 Cr	+62.0%
Free Cash Flow	-₹4,228 Cr	-₹1,664 Cr	-₹2,919 Cr	-₹3,817 Cr	—

🟢 Revenue has grown at 41.0% a year over 3 years.

🟢 EBITDA Margin has risen from -47.8% to -12.2% over 3 years (+35.7 pts).

🟢 ROE has risen from -46.1% to -22.7% over 3 years (+23.5 pts).

🟢 ROCE has risen from -43.0% to -19.4% over 3 years (+23.6 pts).

🔴 Total Debt has grown at 62.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹25,237 Cr

Total Liabilities

₹6,923 Cr

Cash & Equivalents

₹2,747 Cr

Operating Cash Flow

-₹2,898 Cr

Capex

-₹919 Cr

Shareholding (proxy)

Institutional Holding

40.2%

Insider Holding

39.8%

Analyst Consensus

Recommendations

20 Buy · 4 Hold · 3 Sell

Target Price (Mean)

₹360.11

+53.7% vs CMP

Target Range

₹230 – ₹520

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

1 positive3 mixed2 general

Swiggy share price: Down 50% in 1 year; can food delivery stock recover? Should you buy the dip? Check target, stop-loss

Livemint, 17 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Swiggy Share Price near 52-week trough with valuation view

Univest, 13 Oct

Swiggy shares drop 4%, market value down Rs 5,000 crore in 2 days. Here’s why

The Economic Times, 03 SeptPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Swiggy shares rebound from record low; brokerage upgrades stock to 'Buy'

Business Today, 16 OctAnalyst view

🟢Potentially positiveAn analyst opinion changing, which moves the price without changing the business.

Why Swiggy Share Price is up 7% today?

India Infoline, 29 JulPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Swiggy completes sale of Lynks Logistics shares to Trustroot

scanx.trade, 16 Oct

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongGrowth

MiddlingFinancial Health

WeakBusiness Quality · Profitability · Valuation · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 6 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Free cash flow remains positive; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑