Swiggy , the popular food delivery and quick commerce platform, saw its shares jump 5.5% to reach an intraday high of Rs 443.70 on the Bombay Stock Exchange (BSE). The surge comes on the heels of positive analyst projections and investor optimism about the company's future prospects.

Analyst Coverage and Projections

DAM Capital has initiated coverage on Swiggy with a target price of Rs 515, highlighting the company's potential for robust growth and profitability. The brokerage firm projects a 28% revenue Compound Annual Growth Rate (CAGR) for Swiggy over the fiscal years 2025-2028. Moreover, DAM Capital anticipates that Swiggy will achieve adjusted EBITDA profitability by FY28, marking a significant milestone in the company's financial journey.

Food Delivery Segment Breakthrough

A key highlight in Swiggy's performance is the reported EBITDA breakeven of its food delivery arm in FY25. This achievement comes after years of operating losses, signaling a turning point in the segment's financial health. The food delivery market in India remains competitive, with Swiggy holding a 43% market share compared to its rival's 57%. However, Swiggy has been steadily recovering market share since the fourth quarter of FY24, indicating positive momentum in its core business.

Quick Commerce Expansion

Swiggy's quick commerce business, Instamart, is set for significant expansion. The company plans to increase its network of dark stores from 697 in Q3FY25 to over 1,000 by FY26. This growth strategy in the quick commerce segment demonstrates Swiggy's commitment to capturing a larger share of the online retail market.

Inclusion in MSCI Global Standard Index

Swiggy is slated for inclusion in the MSCI Global Standard Index, scheduled to take effect on August 26, 2025. This inclusion could potentially attract substantial passive fund inflows, boosting the stock's liquidity and visibility among global investors.

Market Response

The positive analyst outlook and Swiggy's strategic initiatives have clearly resonated with investors, as evidenced by the 5.5% surge in share price. The stock's performance reflects growing confidence in Swiggy's business model and its ability to navigate the competitive landscape of food delivery and quick commerce in India.

As Swiggy continues to evolve and strengthen its market position, investors and analysts will be closely watching its progress towards the projected growth and profitability targets. The company's ability to maintain its market share recovery in food delivery while successfully scaling its quick commerce operations will be crucial factors in its future performance.

In a move that could reshape the competitive landscape of the food delivery industry, Swiggy , a major player in the sector, has announced a strategic partnership with electric mobility firm Bounce. This collaboration aims to deploy e-scooters in Swiggy's delivery fleet across multiple cities, potentially impacting rivals like Zomato Ltd.

Partnership Details

The partnership between Swiggy and Bounce will unfold in phases, with the initial rollout covering Delhi NCR and Bengaluru over the next three months. E-scooters will be made available to Swiggy and Instamart delivery partners through both the Bounce mobile app and Swiggy's Delivery Partner app at special pricing.

Industry Implications

This move by Swiggy could have significant implications for the food delivery industry:

1. Sustainability Push: The collaboration aims to reduce carbon footprint, aligning with growing environmental concerns and potentially setting a new standard in the industry.

2. Cost Efficiency: By lowering operating costs for delivery partners, this initiative could potentially allow for more competitive pricing in the food delivery market.

3. Expanded Accessibility: The partnership is expected to make electric mobility more accessible and affordable for delivery partners, potentially attracting more gig workers to the platform.

Swiggy's EV Strategy

Swiggy has already established partnerships with over 50 EV partners nationwide, indicating a strong commitment to electric mobility. The company plans to scale this new partnership across multiple cities in the coming months, further solidifying its position in sustainable delivery practices.

Potential Impact on Competitors

For competitors like Zomato, Swiggy's move could present both challenges and opportunities:

• Competitive Pressure: Rivals may need to consider similar initiatives to maintain their competitive edge in terms of sustainability and cost-efficiency.

• Market Dynamics: The food delivery market could see shifts in partner preferences and customer loyalty based on perceived environmental responsibility and potentially lower delivery costs.

• Innovation Imperative: This development may spur competitors to accelerate their own sustainability initiatives and explore innovative partnerships in the electric mobility space.

As the food delivery industry continues to evolve, stakeholders will be watching closely to see how this partnership unfolds and whether it will trigger a broader shift towards sustainable delivery practices across the sector. For investors in food delivery companies, this development underscores the importance of staying attuned to industry trends and competitive moves in the rapidly changing food delivery landscape.