Swiggy's stock made investors rich; know the reason behind the rise

Sports News: On Wednesday, Swiggy's shares rose 5.5% to Rs 443.70. Investors' confidence was seen in the growing growth signs in the company's food delivery and quick commerce (QC) business. This rise has come at a time when there is a positive environment regarding the company's profitability roadmap and market share recovery. Experts believe that in the changing market, Swiggy's position can become stronger in the duopoly (dominance of two companies) with Eternal.

A brokerage firm named DAM Capital has said in its report that Swiggy's revenue can grow at a rate of 28% CAGR between FY25 and FY28, and the company can make adjusted EBITDA profit by FY28. Especially the QC business (Instamart) will prove to be a big driver of growth in the future.

The brokerage firm gave this target price

The brokerage has given a target price of Rs 515 for Swiggy, i.e., about 30% upside from the current price. According to DAM Capital, Swiggy's food delivery business has reached EBITDA break-even (i.e., loss-profit is equal) in FY25, while the loss in the QC segment will also gradually reduce as the productivity and cost management of the stores are improving.

Swiggy holds 43%.

Currently, Swiggy's food delivery market share is 43%, while Eternal's is 57%. But from the fourth quarter of FY24, Swiggy has started gaining market share again. The company will benefit as India's food delivery market is expected to grow at a rate of 17-18% CAGR in the next few years. Urbanization, increasing digital use, and people's online ordering habits will play a big role in this.

The company's growth in quick delivery

The brokerage specifically called Swiggy's Instamart business a key part of the company's long-term strategy. Currently, it lags behind Blinkit in terms of profitability, but the number of dark stores could grow from 697 to over 1,000 by FY26. This is also expected to bring Instamart to profit by FY28. The company's campaigns, like Maxsaver, which focus on increasing average order value and product density, will help reduce QC losses.

Swiggy Joins MSCI Global Index

Apart from this, Swiggy is being included in the MSCI Global Standard Index from 26 August 2025. Inclusion in such an index usually attracts a large amount of passive funds, and it shows the importance of the company in the market. Due to this, the confidence of investors has increased further.