Swiggy Limited (NSE:SWIGGY) First-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year
Shareholders of Swiggy Limited (NSE:SWIGGY) will be pleased this week, given that the stock price is up 13% to ₹285 following its latest quarterly results. The statutory results were not great - while revenues of ₹68b were in line with expectations,Swiggy lost ₹2.96 a share in the process. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the most recent consensus for Swiggy from 27 analysts is for revenues of ₹303.4b in 2027. If met, it would imply a substantial 22% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 27% to ₹10.52. Before this latest report, the consensus had been expecting revenues of ₹302.0b and ₹8.59 per share in losses. While this year's revenue estimates held steady, there was also a massive increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.
See our latest analysis for Swiggy
The consensus price target held steady at ₹363, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Swiggy, with the most bullish analyst valuing it at ₹520 and the most bearish at ₹230 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Swiggy's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 30% growth on an annualised basis. This is compared to a historical growth rate of 47% over the past year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 18% annually. So it's pretty clear that, while Swiggy's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Swiggy. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at ₹363, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Swiggy. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Swiggy going out to 2029, and you can see them free on our platform here..
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.