The rally comes amid rising optimism over Swiggy’s profitability roadmap and market share recovery, with analysts highlighting its potential to unlock value in the evolving duopoly with Eternal.
Brokerage firm DAM Capital, in its recent initiation coverage, said it expects Swiggy to deliver a 28% revenue CAGR over FY25–28 and achieve adjusted EBITDA profitability by FY28, with its QC business emerging as a key growth driver over time.
The firm has also assigned a target price of Rs 515, implying a 30% upside.
According to DAM Capital, Swiggy’s food delivery arm turned EBITDA breakeven in FY25 after years of losses, while the QC vertical is expected to see narrowing losses as store productivity improves and cost efficiencies kick in.
The brokerage also noted that Swiggy, which currently commands a 43% share of India’s food delivery market versus Eternal’s 57%, has started clawing back market share since Q4FY24 after losing ground in earlier years.It expects the company to benefit from the structural growth of the food delivery market, projected to expand at a 17-18% CAGR in Gross Order Value and adjusted revenue over FY25–28, aided by rising urbanisation, digital adoption, and increasing frequency of online orders.DAM Capital further highlighted Swiggy’s QC business, Instamart, as a key pillar of its long-term strategy. While Instamart trails Blinkit in profitability, it is expected to scale significantly, with dark store count likely to rise from 697 in Q3FY25 to over 1,000 by FY26, potentially helping Swiggy reach segment profitability by FY28.The brokerage believes campaigns such as Maxsaver, aimed at boosting average order values and SKU density, will be instrumental in narrowing QC losses.
Adding to the positive sentiment, Swiggy has also been included in the MSCI Global Standard Index, effective August 26, 2025. Such inclusions typically attract significant inflows from passive funds and signal growing recognition of the company’s relevance in India’s equity markets, further reinforcing investor confidence.
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