Swiggy shares surge by 5% today: Here we decode why
What's the story
Swiggy's shares jumped by a whopping 5.5% today, hitting an intraday high of ₹443.70 on the BSE. The surge comes as investors are optimistic about the company's growth potential in its food delivery and quick commerce segments. The positive sentiment is fueled by DAM Capital's projections of a 28% revenue compound annual growth rate (CAGR) from FY25-28 and profitability by FY28, largely driven by Instamart's performance.
Growth prospects
EBITDA profitability projected by FY28
DAM Capital also predicts that Swiggy will achieve adjusted EBITDA profitability by FY28, with its QC business emerging as a major growth driver. The firm has set a target price of ₹515 for Swiggy's shares, indicating a potential 30% upside. This comes after years of losses for the company's food delivery arm which turned EBITDA breakeven in FY25.
Market dynamics
Food delivery market growth and Swiggy's position
Swiggy, which currently holds a 43% share of India's food delivery market, has been regaining lost ground since Q4 FY24. DAM Capital expects the firm to benefit from the structural growth of this market, projected to grow at a 17-18% CAGR in Gross Order Value and adjusted revenue over FY25-28. This growth will be driven by urbanization, digital adoption, and rising frequency of online orders.
Strategic expansion
Instamart's growth trajectory
DAM Capital has also highlighted Swiggy's QC business, Instamart, as a major part of its long-term strategy. Despite trailing Blinkit in profitability, Instamart is expected to grow significantly. The number of dark stores is likely to jump from 697 in Q3 FY25 to over 1,000 by FY26. This could help Swiggy achieve segment profitability by FY28.
Index inclusion
MSCI Global Standard Index inclusion boosts investor sentiment
Swiggy's positive sentiment was further boosted by its inclusion in the MSCI Global Standard Index, effective August 26, 2025. Such inclusions usually draw considerable inflows from passive funds and indicate growing recognition of a company's relevance in India's equity markets. This move has further bolstered investor confidence in Swiggy's potential for growth and profitability.