CITI on Swiggy : Buy, TP cut to Rs 330

Delivered an in-line core food delivery (GOV: +18% YoY) where margins continued to improve (+60bps YoY; +30bps QoQ). QC came in softer vs expected on NOV growth (+13% QoQ vs Citi: +16% QoQ) while contribution margins declined 80bps QoQ (in-line vs Citi) to -1% of GOV and segment Adj EBITDA losses stood at -Rs8.9bn (Citi: -Rs8.7bn) Swiggy continues to explore avenues to sustainably: a) expand serviceable TAM in food delivery via Toing b) improve user retention & take-rates in Instamart via differentiated assortment.

SWIGGY LIMITED

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