Swiggy Stock Rally: Why Analysts Are Rushing to Upgrade Before Q1 Results Drop

Today, Swiggy shares surged by nearly 8%, touching an intraday high of around ₹426, marking a 7.99% gain. This rally came on the back of positive sentiment sweeping across the food delivery and quick-commerce sector, triggered by Eternal’s (Zomato) strong Q1 FY26 results.

In terms of recent performance, Swiggy has been on a steady uptrend, delivering approximately 10.8% returns in the last month and 6.6% in the past week. The stock traded in the ₹389–₹401 range, opening at ₹388.8 and peaking at ₹400.8. With around 17.6 million shares traded, Swiggy emerged as one of the most active stocks on the NSE that day.

What Analysts Are Saying Swiggy share

Brokerages remain largely bullish on Swiggy. Several analysts have initiated coverage or revised their targets based on recent performance:

• Nirmal Bang: “Buy” rating with a ₹500 target, highlighting Swiggy’s expanding delivery margins and investment in 412 new dark stores under Instamart.
• Elara Securities: “Accumulate” rating and ₹450 target, noting consistent execution in both food delivery and quick-commerce.
• TipRanks: Average 12-month target at ₹417.50, pointing to ~33% upside.
• Investing.com / S&P Global: Consensus average target of ₹422.95, with a wide range from ₹260 to ₹740.
• Trendlyne: Bullish analysts predict a target of ₹533.33, suggesting ~29% upside.
• ICICI Securities: Maintains a “Buy” with the most optimistic forecast of ₹740.

Notably, IIFL Capital projects up to 50% upside, setting a target of ₹535. Morgan Stanley and JM Financial also back the stock, with the latter adjusting its target to ₹450 from ₹500.

Key Growth Drivers Behind the Surge

Swiggy’s share rally is driven by a mix of sector-wide momentum and company-specific developments:

• Sector Boost: Eternal’s earnings beat in Q1 FY26 has sparked broader interest in the duopoly that Swiggy shares with Zomato.
• Instamart Expansion: Swiggy has aggressively scaled its quick-commerce operations with 412 new dark stores, putting pressure on Blinkit and others.
• Improved Margins: Food delivery margin gaps with Eternal have narrowed significantly—from ~140 basis points in early FY25 to ~81 bps by Q4 FY25.
• Strong Liquidity: Swiggy reported ₹6,695 crore in cash reserves in Q4FY25, though still below Eternal’s ₹18,857 crore, indicating its rapid investment pace.
• Talent Retention: Swiggy recently issued ₹150 crore in ESOPs, signaling efforts to retain top talent during its expansion phase.

Looking Ahead: Earnings, Risks & Price Targets

With Q1 FY26 results due on July 31, 2025, investor attention is now focused on whether Swiggy can maintain this positive trend. Analysts widely maintain a “Buy” or “Accumulate” stance, with 12-month price targets generally falling between ₹420–₹500.

However, there’s a wide range of opinions, with some forecasting as low as ₹260 and others as high as ₹740, depending on Swiggy’s performance in:

• Quick-commerce execution and profitability, especially through Instamart.
• Sustained margin improvements in core food delivery.
• Competitive strategies from sector peer Eternal, such as Rapido food delivery.

Conclusion

Swiggy is currently in a strong position, benefiting from positive sector dynamics and solid execution. While the valuation looks aggressive at the upper end, the fundamentals—margin recovery, fast expansion, and strong liquidity—back the current optimism. The upcoming Q1 FY26 results will be a major catalyst that could either reinforce or shake the bullish narrative. Investors and analysts alike will be watching July 31 very closely.

F.A.Q.

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