International brokerage house Jefferies has maintained 'Buy' ratings on three companies across different sectors - Swiggy in food delivery, Tata Steel in steel, and Mahindra & Mahindra (M&M) in automobiles. According to reports from The Financial Express, the target prices indicate upside potential ranging from 22% to 47% from current market prices. The brokerage's positive outlook is driven by improving earnings visibility, business expansion, and long-term growth opportunities across these diverse industries. As per Jefferies reports, what unites these companies from completely different worlds - food delivery, steel, and cars - is their shared potential for earnings growth and business expansion. Swiggy's stock gained nearly 5% following the announcement of its ambitious five-year growth strategy, with shares climbing to ₹305 on intraday highs before settling at ₹288.65, down 0.43% due to profit booking. The stock has rebounded nearly 20% from its recent swing low of ₹243 recorded on July 24, according to SBI Securities.
Multiple brokerages have expressed support for Swiggy's ambitious five-year growth strategy, with Jefferies raising its target price to ₹435 from ₹415, describing the FY31 roadmap as a "grand vision" to build a $1 billion EBITDA business. Citi also reiterated its 'Buy' rating with a target price of ₹390, noting that Swiggy is focused on defending and gaining market share in quick commerce while narrowing the operational efficiency gap with Eternal. Morgan Stanley retained its 'Equal-weight' rating with a target price of ₹328, calling the company's aspirations ambitious but highlighting that investors will need evidence that the strategy can be executed consistently. The latest addition to this bullish sentiment comes from Motilal Oswal, which has recommended a 'Buy' rating with a target price of ₹350, implying a 21% upside potential. As per Motilal Oswal's research report dated August 06, 2026, the brokerage values the Food Delivery business at 30x FY28E EV/EBITDA, the Out-of-Home, Platform and Supply Chain businesses at 1x FY28E EV/Sales, and Quick Commerce using a DCF methodology.
Swiggy has unveiled an ambitious five-year growth strategy at its Capital Markets Day 2026, setting a target of ₹10,000 crore in adjusted EBITDA by FY31. The food delivery platform expects its Gross Order Value (GOV) to grow at a Compounded Annual Growth Rate (CAGR) of over 30% over the next five years, with consolidated GOV projected to reach around ₹2.5 lakh crore from ₹67,734 crore in FY26. According to CNBC TV18, Managing Director and Group CEO Sriharsha Majety stated that "Our confidence in achieving our five-year EBITDA goal is rooted in the strength of our fundamentals. We have always believed that if we stay focused on solving large consumer problems and execute with discipline, the financial outcomes will follow." The company operates in three large and fast-growing consumer categories - food delivery, quick commerce and out-of-home consumption - each with significant growth potential. The growth strategy relies on driving operational efficiency across its core food delivery operations, scaling up its quick-commerce vertical Instamart, and expanding out-of-home dining through Dineout. Motilal Oswal notes that if achieved, this would represent a meaningful upside to their current estimate of ₹55 billion, with the company outlining an ambitious target of ~₹100 billion adjusted EBITDA by FY31, comprising ~₹50 billion from Food Delivery, ~₹40 billion from Quick Commerce, and ~₹10 billion from Out-of-Home.
Swiggy's Instamart quick-commerce unit is expected to achieve a remarkable four-to-fivefold growth in Gross Order Value (GOV), rising to ₹1.5 lakh crore by fiscal 2031 from ₹280 billion in fiscal 2026. The company aims to expand its monthly transacting user base to over 40 million while moving towards EBITDA breakeven. This aggressive expansion comes as Swiggy and rival Eternal's Blinkit aim to capture more market share in India's competitive quick-commerce market. The company's Food Delivery business is expected to generate around ₹5,000 crore in adjusted EBITDA by FY31, with Gross Order Value projected to grow between 2.5 times to 3.5 times over the next five years. The segment reported GOV of ₹9,490 crore in Q1 FY27, up 18% year-on-year, while adjusted EBITDA run rate rose to ₹292 crore, nearly five times the level seen in Q1 FY25. Instamart has already improved unit economics, with contribution margin losses narrowing to 0.2% of GOV in Q1FY27 from much steeper losses in earlier periods. About 45% of its dark store network is already contribution-margin positive, while five of its seven largest cities, including Bengaluru, are operating profitably. The quick commerce business reported a 40% year-on-year increase in GOV to ₹7,907 crore in Q1 FY27 and is targeting more than ₹1.5 lakh crore in GOV by fiscal 2031.
The out-of-home dining segment, Dineout, is projected to scale its GOV to ₹20,000–25,000 crore by FY31 while contributing ₹1,000 crore in Adjusted EBITDA. This expansion represents a significant diversification beyond traditional food delivery into the broader dining ecosystem. The segment's growth is supported by new affordability programs designed to increase order frequency among users, demonstrating Swiggy's strategy to capture more value from each customer interaction across multiple touchpoints in the food services ecosystem. The dining-out business, which completed its first full year of adjusted EBITDA profitability in FY26, is projected to grow its GOV five-fold to ₹20,000-25,000 crore by FY31. The segment's GOV was ₹4,600 crore in fiscal 2026 and is expected to increase nearly five-fold to the projected range by FY31.
Swiggy plans to deepen the use of artificial intelligence across demand forecasting, logistics, partner management and monetisation through proprietary tools, including its in-house analytics platform SAGE. This AI-driven approach is expected to enhance operational efficiency and customer experience across all business verticals. The company's revenue rose 37.3% year-on-year to ₹6,812 crore in the June quarter while consolidated net loss narrowed to ₹791 crore from ₹1,197 crore a year earlier. The company ended Q1FY27 with a B2C GOV of ₹18,926 crore and 27.5 million average monthly transacting users. The company remains debt-free with a cash balance of ₹14,400 crore and expects consolidated adjusted EBITDA margins to reach around 4% of GOV by FY31. Management also outlined plans to improve unit economics in Instamart while expanding the total addressable market in food delivery through value-focused offerings.
