Grab Holdings Maintains Growth Momentum Despite Challenges, US$7.00 Target Price & Buy Rating August 14, 2026
Company Overview
Grab Holdings operates as Southeast Asia’s leading super-app platform, providing mobility, delivery, and financial services across the region. The company has established itself as a dominant player in the digital ecosystem, leveraging its extensive user base to drive cross-selling opportunities across multiple business segments.
Financial Performance and Outlook
Phillip Securities Research maintains its BUY recommendation with an unchanged target price of US$7.00 for Grab Holdings, following the company’s second-quarter results. Revenue growth remained robust at 22% year-on-year to US$997 million in Q2 2026, demonstrating the platform’s resilience despite near-term headwinds including elevated fuel prices.
The company’s Q2 2026 revenue aligned with estimates, whilst profit after tax and minority interests outperformed expectations due to a US$307 million gain from consolidating Superbank. Excluding this exceptional item, first-half revenue and PATMI represented 47% and 23% of full-year forecasts respectively, with earnings expected to be back-end loaded.
Key Growth Drivers
Groceries Emerging as Delivery Growth Engine
GrabMart has emerged as a significant growth catalyst within the deliveries segment, which posted 22% year-on-year GMV growth. The grocery platform demonstrates exceptional momentum, with GMV expanding at 1.7 times the rate of food delivery and its user base growing 42% year-on-year. Notably, GrabMart users represent only 14% of Grab’s food-delivery user base, indicating substantial cross-selling potential and market penetration opportunities. The company is enhancing this opportunity through strategic supermarket partnerships and its AI-powered Shopping Agent, which drives increased purchase frequency, larger basket sizes, and creates additional advertising revenue streams.
Financial Services Approaching Profitability
Financial Services maintained its position as Grab’s fastest-growing segment, with revenue surging 59% year-on-year whilst adjusted EBITDA losses narrowed to US$15 million from US$26 million previously. The lending portfolio reached US$2.3 billion, representing 197% year-on-year growth, or 100% excluding Superbank consolidation. Management remains confident that financial services will achieve adjusted EBITDA profitability in the second half of 2026, with the loan book expected to exceed US$3 billion by year-end. The Superbank consolidation and Stash wealth platform acquisition should further expand Grab’s financial ecosystem whilst creating additional cross-selling opportunities.
Frequently Asked Questions
Q: What is Phillip Securities Research's recommendation and target price for Grab Holdings?
A: Phillip Securities Research maintains a BUY recommendation with an unchanged target price of US$7.00.
Q: How did Grab's Q2 2026 financial performance compare to expectations?
A: Q2 2026 revenue of US$997 million was in line with estimates, whilst PATMI outperformed due to a US$307 million gain from consolidating Superbank. Revenue growth remained strong at 22% year-on-year.
Q: Which business segments drove Grab's revenue growth?
A: Growth was driven by continued strong momentum across delivery services (+21% year-on-year) and Financial Services (+60% year-on-year).
Q: What makes GrabMart significant for Grab's future growth?
A: GrabMart's GMV is growing at 1.7 times the rate of food delivery, with its user base expanding 42% year-on-year. GrabMart users represent only 14% of Grab's food-delivery user base, indicating substantial cross-selling potential.
Q: When does Grab expect its Financial Services segment to become profitable?
A: Management reiterated that Financial Services is on track to achieve adjusted EBITDA profitability in the second half of 2026.
Q: How large is Grab's lending portfolio and what are the growth expectations?
A: The gross loan portfolio reached US$2.3 billion, up 197% year-on-year. Management expects the loan book to exceed US$3 billion by year-end.
Q: How has Grab demonstrated resilience against market challenges?
A: Despite elevated fuel prices, Grab has maintained robust underlying demand and stable margins whilst demonstrating strong revenue growth across key segments.
Q: What additional corporate actions has Grab announced?
A: Grab announced an additional US$750 million share repurchase authorisation, reiterating confidence in its valuation.
This article has been auto-generated using PhillipGPT. It is based on a report by a Phillip Securities Research analyst.
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About the author
Helena Wang
Helena covers Hardware/Marketplaces/ETF. Helena graduated with a master's degree in Financial Technology from Nanyang Technological University.
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