Bengaluru, India – Swiggy’s stock, trading on the National Stock Exchange (NSE) under the ticker SWIGGY, has seen a significant boost in recent days, with the share price climbing to ₹429.80 as of the market close. This comes after the company’s shares rallied more than 5% earlier in the week, hitting an intraday high of ₹443.40.
The rally is attributed to several key factors that have created a bullish outlook for the food and quick commerce giant.
Key Drivers of the Surge
1. Analyst Optimism: A recent report by brokerage firm DAM Capital has ignited investor confidence. The firm initiated coverage with a positive outlook, setting a target price of ₹515. They project Swiggy will achieve a 28% Compound Annual Growth Rate (CAGR) in revenue from fiscal year 2025 to 2028 and expect the company to reach adjusted EBITDA profitability by FY28.
2. Profitability and Growth: The analysis highlighted a major turning point for the company: its core food delivery business has reportedly reached EBITDA breakeven in FY25, a significant achievement after years of losses. The quick commerce arm, Instamart, is also expected to see narrowing losses as it scales up its network of “dark stores,” with plans to expand from 697 to over 1,000 by FY26.
3. Strategic Market Moves: Swiggy has been strategically increasing its platform fee in high-demand areas to help offset costs and improve margins. This move, along with a recent increase in order volumes, has positively impacted its financial performance.
4. Institutional Confidence: Mutual funds have been actively accumulating Swiggy shares, with SBI Mutual Fund, one of the largest fund houses, significantly increasing its stake in July. This institutional buying is seen as a strong vote of confidence, signaling that big investors believe the stock is currently undervalued.