Swiggy Shares: 5.1% Jump & Rs 535 Target Price
swiggy’s shares surged, experiencing a noteworthy 5.1% jump, fueled by a “buy” rating from IIFL Capital and reaching Rs 383.80. This positive momentum is attributed to promising growth in both food delivery and Swiggy‘s swift commerce initiatives, with analysts setting a target price of Rs 535. IIFL Capital forecasts a substantial 46% upside, citing the company’s strengthening position in the competitive market. The firm highlights the important potential in the undervalued quick commerce segment, including services like “Bolt,” which is gaining traction. While market share fluctuations occured, the brokerage anticipates a strong compound annual revenue growth.Keep up with the latest market insights and trends with News Directory 3. discover what’s next as Swiggy navigates its strategic path toward profitability.
Swiggy Stock Rises on Optimistic Food Delivery, Quick Commerce Growth
Updated June 19, 2025
Shares of Swiggy, the No. 2 food delivery platform in India, experienced a surge of as much as 5.1% to Rs 383.80 on the BSE Thursday. This jump extends a two-day rally to 7.9% after IIFL Capital initiated coverage wiht a “buy” rating, pointing to significant growth potential in both food delivery and quick commerce, a key role in the company’s future.
IIFL Capital set a target price of Rs 535 for Swiggy, suggesting a 46% increase from Wednesday’s closing value. The brokerage firm emphasized Swiggy’s improved performance, stronger position in the competitive food delivery market, and the undervalued quick commerce business as primary factors driving this optimistic outlook. The food delivery sector is expected to see substantial gains.
While Swiggy’s market share saw a dip from 46.5% in fiscal year 2022 to 42.4% in the first quarter of fiscal year 2025, largely due to execution challenges, IIFL anticipates a turnaround. They project a 28% compound annual revenue growth rate between fiscal years 2025 and 2028, with the company achieving Ebitda profitability by fiscal year 2027. This growth is heavily reliant on the quick commerce segment.
Swiggy’s quick commerce division is gaining momentum with initiatives such as “Bolt,” its 10-minute delivery service, now accounting for 12% of order volumes. Currently, Swiggy holds a 43% share in India’s food delivery market, which IIFL expects to remain a stable duopoly.The brokerage firm estimates an 18% CAGR for the food delivery segment between fiscal years 2025 and 2028,with adjusted Ebitda margins reaching 20% by fiscal year 2028.
Swiggy’s contribution margin improved from 7.1% of gross order value in fiscal year 2025 to 7.8% in the March quarter, boosted by increased ad revenues and cost efficiencies. IIFL values the food delivery business at $8.5 billion.With Swiggy’s total market capitalization at $10.3 billion, the implied value of its quick commerce and other units stands at just $1.8 billion-an 88% discount compared to Blinkit, despite being approximately half its size. IIFL believes this presents significant re-rating potential if Swiggy effectively executes its strategy in the quick commerce segment.
Technically, the stock maintains a bullish trend, trading above all major moving averages. It has increased by 19% over the past month, with the Relative Strength Index at 62.4, remaining below the overbought threshold of 70. The MACD also remains in positive territory.
IIFL acknowledged potential risks from rising competition and regulatory factors but affirmed that Swiggy’s long-term prospects remain strong. The stock is currently trading at 4.1 times the estimated enterprise value to sales for fiscal year 2026, which is lower than most Indian internet peers. The brokerage firm anticipates this valuation gap will narrow as Swiggy achieves profitable scaling.
What’s next
Investors will be closely watching Swiggy’s performance in the quick commerce sector and its ability to maintain its market share in the face of increasing competition. The company’s progress toward Ebitda profitability by fiscal year 2027 will also be a key indicator of its long-term success.