Swiggy Shares Flatline After Rising 5% as Company Targets ₹10,000 Crore Core Earnings by FY31 

Mumbai, August 6: Shares of Swiggy climbed as much as 5% on Thursday after the food delivery and quick commerce company unveiled an ambitious long-term growth strategy, targeting ₹10,000 crore in annual core earnings by FY31. Investors cheered the company’s roadmap, which hinges on rapid expansion of its quick commerce business, Instamart, alongside sustained growth in its food delivery operations. However, profit booking kicked in, erasing gains and pushing the stock 0.07% lower into the red as of writing.  

Swiggy said it expects to achieve the earnings milestone over the next five years as both of its core businesses scale up. 

Instamart to play key role 

A key pillar of Swiggy’s strategy is its quick commerce platform, Instamart, which the company expects to become a major earnings engine by FY31. 

Stock pared gains after rising on upbeat outlook. Source: NSE

Swiggy projects Instamart’s gross order value (GOV) to increase four to five times from around ₹280 billion in FY26 to nearly ₹1.5 trillion by FY31. The company also expects consolidated GOV across businesses to grow more than 30% yearly, reflecting aggressive expansion plans in the rapidly evolving quick commerce segment.  

Management said it will continue investing in expanding dark store infrastructure, improving product assortment and enhancing delivery efficiency to strengthen Instamart’s competitive position against rivals including Blinkit, Zepto, BigBasket and Flipkart Minutes.  

Food delivery business to remain a key profit driver 

While quick commerce is expected to account for a significant share of future growth, food delivery business will continue to generate substantial earnings. 

The company expects its food delivery segment to deliver ₹5,000 crore in core earnings by FY31, supported by a 2.5-3.5 times increase in gross order value over the next five years. Rising order frequency, higher user engagement and operational efficiencies will help improve margins as the business matures.  

Complementary businesses such as Dineout and other consumer offerings will also strengthen customer retention and create additional revenue opportunities. 

Focus on profitability despite competitive pressures 

Swiggy’s long-term guidance comes even as the company continues to invest heavily in expanding its quick commerce footprint, a segment that has intensified competition and weighed on near-term profitability. 

For FY26, Swiggy reported an adjusted EBITDA loss of ₹2,871 crore. However, management remains confident that scale benefits, improved unit economics and higher operating efficiencies will gradually narrow losses before turning the business sustainably profitable.  

The board has also approved raising the company’s foreign shareholding limit to 49.5%, a move that would facilitate a transition to a first-party inventory model for Instamart. According to the company, the change is expected to improve merchandising capabilities, inventory management and overall unit economics.  

The upbeat long-term outlook boosted investor sentiment, with the stock gaining as the market welcomed management’s confidence in building a profitable, multi-business consumer platform over the next five years.  

Source

•  https://www.nseindia.com/get-quote/equity/SWIGGY/Swiggy-Limited