Anand Rathi Share and Stock Brokers reportedly upgraded Indian food-delivery company Swiggy ahead of its next results, with Instamart’s improving margins central to the reported case for the shares.
Business Today and Mint reported that the brokerage raised its rating from “hold” to “buy” and kept its ₹310 share-price target.
Instamart’s contribution margin reached zero in May 2026, Swiggy said. For the quarter ended June 30, however, that margin was negative 0.2% of gross order value. That was an improvement of 440 basis points from a year earlier, while the quick-commerce business recorded a ₹778 crore adjusted EBITDA loss for the full quarter.
Swiggy’s food-delivery business generated ₹292 crore in adjusted EBITDA on ₹9,490 crore of gross order value in the June quarter. Gross order value rose 17.4% from a year earlier, and the segment’s adjusted EBITDA margin was 3.1% of that value.
Instamart had 1,171 active dark stores across 131 cities at June 30. Swiggy said utilization was about 40% and identified fuller use of its network as one way to improve margins. Mint reported that Anand Rathi also pointed to greater store use and a broader range of non-grocery products.
Another potential change concerns who owns the goods Instamart sells. Swiggy estimates that directly owning and selling inventory could add ₹4 to ₹5 per order to its contribution margin. Shareholders approved a 49.5% cap on aggregate foreign ownership Aug. 18 as part of the company’s effort to qualify for that model. Swiggy has said the operational transition could take two to four quarters after approval.
Business Today reported that Anand Rathi cited competition and slower food-delivery growth as risks to its outlook. Swiggy’s board is scheduled to consider results for the quarter ended Sept. 30 on Oct. 22, providing the next update on Instamart’s margins.
