Swiggy shares hit 52-week low, down 35% in 1 month- should investors buy the stock after Q2 results? Expert view

Food delivery MTUs (monthly transacting users) grew 15.2% YoY to reach 19.8 million.Adjusted EBITDA improved by ₹101 crore YoY to ₹341 crore, while adjusted EBITDA margin grew by 58 bps YoY to 3.4%.The company said its out-of-home consumption grew 34.9% YoY to ₹1,508 crore and delivered its seventh successive quarter of profitability, with margins at 0.5% of GOV.Should investors buy the stock after Q2 results?Brokerages have largely retained their previous views on the stock, but some of them have reduced their target prices after the company's Q2 results.Motilal Oswal Financial Services has a buy call on the stock with a target price of ₹280, implying a 32% upside potential.The brokerage firm has cut its FY26-30 NOV CAGR assumption from 38% to 32%, reflecting a slower growth trajectory than Blinkit as competitive intensity continues to weigh on Instamart’s performance."Lower growth is expected to delay operating leverage and extend the period of losses, resulting in downward revisions to our estimates," said Motilal Oswal.Motilal Oswal believes Swiggy's food delivery franchise and brand recall provide long-term strategic value.

However, a clear path toward QC EBITDA profitability remains critical for a meaningful re-rating.ICICI Securities also has a buy call on the stock, but the brokerage firm reduced the target price to ₹400 from ₹520 earlier.According to ICICI, quick commerce may deliver sequential EBITDA margin gains in the second half of FY27 with the reversal of discounts through the next few quarters, and as IOCC is implemented in Q3FY27."Food delivery (FD)’s margin expansion remains a key positive for Swiggy (up 30bps QoQ).

This could extend into the second half with NOV growth accelerating," said ICICI Securities.Emkay Global Financial Services maintained a buy call on the stock but cut the target price to ₹310 from ₹350."We see Swiggy as a strong food delivery franchise with operating leverage and quick commerce as an optionality. We await sustained double-digit sequential NOV growth in Instamart, alongside improving customer retention, monetisation, and store utilisation, before assigning a higher valuation," said Emkay.On the other hand, JM Financial has a "reduce" view on the stock with a reduced target price of ₹200 from ₹255 earlier."We factor in higher consolidated adjusted EBITDA losses of 17–85% over FY27–29E as losses across Instamart, supply chain and PI segments continue to be higher than our initial estimates," said JM Financial."We continue to ascribe zero value to Instamart, supply chain and residual PI businesses, while excluding cash given sustained cash burn.

We believe capex, working capital investments and segmental losses in several businesses will meaningfully bring down this balance over the next 2–3 years," JM Financial said.Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.