Share Market News / Swiggy's stock made investors rich, know the reason behind the rise

Share Market News: Swiggy shares saw a spectacular rally of 5.5% on Wednesday, taking the share price to Rs 443.70. This surge reflects the growing confidence of investors, who are excited by signs of strong growth in the company's food delivery and quick commerce (QC) business. This boom has come at a time when there is a positive environment regarding Swiggy's profitability roadmap and improvement in market share. Market experts believe that in the changing market scenario, Swiggy can further strengthen its position in the ongoing duopoly with Eternal (Zomato).

DAM Capital report: 28% CAGR expected in revenue

According to a recent report by DAM Capital, Swiggy's revenue may grow at a compound annual growth rate (CAGR) of 28% between FY25 and FY28. Along with this, the company is likely to turn into adjusted EBITDA profit by FY28. In particular, Swiggy's quick commerce business, Instamart, could prove to be a big driver of growth in the future.

Brokerage target price: Rs 515

DAM Capital has set a target price of Rs 515 for Swiggy shares, which is about 30% higher than the current price. The report said that Swiggy's food delivery business has reached EBITDA break-even in FY25, that is, this segment is neither in loss nor profit. At the same time, the loss in the quick commerce segment is gradually reducing, as the productivity and cost management of the company's dark stores is improving.

Swiggy's position in the food delivery market

Currently, Swiggy's food delivery market share is 43%, while Eternal's is 57%. However, from the fourth quarter of FY24, Swiggy has started gaining market share again. Experts estimate that India's food delivery market will grow at a rate of 17-18% CAGR in the next few years. Urbanization, increased digital usage and people's growing habit of ordering online will play an important role in this growth.

Quick Commerce: Instamart will become a game-changer

DAM Capital has described Swiggy's Instamart business as an important part of the company's long-term strategy. Although this segment is currently behind Blinkit (Zomato's QC business), the number of Swiggy's dark stores can increase from 697 to more than 1,000 by FY26. This is also expected to make Instamart profitable by FY28. Campaigns like the company's Maxsaver, which focuses on increasing average order value (AOV) and product density, can contribute significantly to reducing the losses of Quick Commerce.

Benefit of being included in the MSCI Global Standard Index

Swiggy is being included in the MSCI Global Standard Index from August 26, 2025. Inclusion in such an index usually attracts large-scale investment from passive funds, which further increases the importance of the company in the market. This news has also strengthened the confidence of investors.