3 ‘Buy’ recommendations by Jefferies, with 16% to 49% upside potential

The reports pointed to stronger medium-term growth visibility in food delivery, transmission infrastructure and premium consumption. Some businesses, however, continue to deal with margin pressure, weak volume trends and intense competition. 

Jefferies on Swiggy: ‘Buy’

Jefferies retained its ‘Buy’ rating on Swiggy and assigned a target price of Rs 415, indicating 49% upside. The brokerage, however, said questions around quick commerce profitability still remain unresolved.

The firm said food delivery growth accelerated to a 15-quarter high during the March quarter. Customer additions, affordability initiatives and premium offerings supported the momentum. According to Jefferies, Swiggy’s food delivery gross order value rose around 23% year-on-year in the fourth quarter of FY26. Adjusted EBITDA margin improved to 3.3% of gross order value.

Jefferies said products such as Bolt, One BLCK and the Rs 99 Store helped widen customer occasions. These offerings contributed nearly one-fourth of platform volumes. At the same time, quick commerce losses stayed elevated. Adjusted EBITDA loss stood at Rs 860 crore despite some sequential improvement.

Jefferies said Swiggy’s business-to-consumer gross order value grew about 40% year-on-year. Operating cash flow stood at negative Rs 2,900 crore in FY26, while free cash flow came in at negative Rs 3,800 crore. Cash balance at the end of March 2026 stood near Rs 15,000 crore. The brokerage also raised concerns over management refraining from committing to a timeline for EBITDA break-even in quick commerce.

“Food delivery growth accelerated to a 15-qtr high, ahead of guidance, with adj. EBITDA margin at 3.3%, a positive,” Jefferies said in its report.

The brokerage added that its ‘Buy’ call was “solely on valuation” at this stage. It said the stock could remain range-bound until there is greater visibility on industry structure and profitability trends in quick commerce.

Jefferies also pointed to improving contribution margins in Instamart. The exit month contribution margin stood at negative 1.1% after monetisation gains, larger basket sizes and rationalisation of consumer incentives. However, the brokerage said aggressive marketing spends amid competition continued to weigh on profitability.

“Mgmt. expects growing Q/C to US$11bn, with 4-5% EBITDA margins in the medium term,” the report said.

Jefferies on Adani Energy Solutions: ‘Buy’

Jefferies maintained its ‘Buy’ recommendation on Adani Energy Solutions and set a target price of Rs 1,665, implying 20% upside. The brokerage said the company remains one of the strongest listed plays on India’s transmission and distribution expansion cycle. It cited a large project pipeline and rising smart meter execution as key drivers.

The brokerage highlighted that Adani Energy Solutions has transmission projects worth Rs 71,800 crore on hand. This figure was up 20% year-on-year. Jefferies estimated that the company could deliver 32% EBITDA compound annual growth and 17% earnings per share growth between FY26 and FY28. That is materially ahead of Power Grid Corporation of India over the same period.

Jefferies noted that the company’s transmission network expanded 41% to 27,949 circuit kilometres in FY26 from 19,779 circuit kilometres in FY23. In Mumbai distribution, the company reduced losses to 4.20% from 5.93% during the same period. The brokerage also said smart metering has emerged as a meaningful growth engine, with projects worth Rs 29,500 crore in hand.

“EBITDA delivery should drive upside,” Jefferies said while arguing that the stock’s valuation discount to its January 2023 peak leaves room for rerating if execution momentum sustains.

The brokerage further said Adani Energy Solutions now trades at a much lower premium to Power Grid compared with levels seen in January 2023. Jefferies estimated that the company’s EBITDA could rise 2.6 times between FY26 and FY30. Power Grid, in comparison, is projected to see 1.4 times growth over the same period.

Jefferies also pointed to improving balance sheet strength. The brokerage said net debt-to-equity stood at 1.8 times as of March 2026. The company also remained fully funded for the next three to four years following a US$ 1 billion qualified institutional placement completed in August 2024.

“Lower interest cost, EBITDA from incremental commissioned assets and no equity raise should help ROE move closer to 12% levels in FY26-29E,” Jefferies said.

Jefferies on Britannia: ‘Buy’

Jefferies retained its ‘Buy’ rating on Britannia Industries and pegged the target price at Rs 6,750, implying 16% upside. The brokerage, however, trimmed earnings estimates after the company’s quarterly miss on volume growth.

The firm said Britannia delivered mid-single-digit volume growth during the March quarter even after benefiting from the goods and services tax rate cut. Consolidated revenue rose 7% year-on-year, while operating EBITDA increased 6% to Rs 852.9 crore. Pre-exceptional profit after tax climbed 21%, aided by lower finance costs and taxes.

Jefferies said volume growth of 5.5% remained below expectations because of disruptions linked to dual pricing in the Rs 5 and Rs 10 packs. The weakness was more visible in wholesale and rural channels. The brokerage also noted that tensions in the Middle East hurt exports from India during March, affecting international operations.

“Mgmt attributed this to transitory factors such as dual pricing, channel-level disruptions etc. while guiding to an improved trajectory in the coming qtrs,” Jefferies said in the report.

The brokerage said gross margin expanded about 240 basis points to 41.7% as input costs such as palm oil, cocoa, laminates and flour moderated on a year-on-year basis. However, Jefferies cautioned that commodity inflation has again picked up since March because of geopolitical developments and higher freight costs.

Britannia plans to offset cost pressures through calibrated price hikes, grammage reductions and tighter cost controls, according to the brokerage. Jefferies also said modern trade and e-commerce channels continued to deliver strong momentum. Quick commerce emerged as the fastest-growing channel for premium and niche products.

“Demand is expected to remain inelastic even after price hikes,” Jefferies said, citing management commentary from the earnings interaction.

Even after lowering earnings estimates by 6% to 8%, the brokerage said it continues to back the stock because of Britannia’s market share gains, premiumisation push and expansion beyond biscuits into broader food categories.

Conclusion

Overall, Jefferies’ latest calls showed a preference for companies with stronger medium-term growth visibility despite near-term pressures. The brokerage remained constructive on businesses linked to consumption, digital services and infrastructure, while also pointing to improving discipline in several sectors. Even though concerns around margins, competition and demand trends remain, Jefferies said execution, scale and attractive valuations continue to support its positive stance on these stocks.

Disclaimer: Investing in equities involves significant market risk. The price targets and ”Buy” ratings mentioned are based on third-party brokerage analysis and do not constitute an offer, solicitation, or investment advice by this publication. Readers are strongly advised to consult a SEBI-registered investment advisor before making any financial decisions based on these projections.
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