Swiggy shares may rally 50%, says IIFL as it initiates coverage with buy call

IIFL Capital has initiated coverage on Swiggy with a ‘buy’ rating and a target price of Rs 535, implying a 50% potential upside from the current market price of Rs 355.9. The brokerage cited Swiggy’s improving execution, strong positioning in food delivery, and underappreciated potential in quick commerce as key drivers of future gains.

Swiggy, India’s second-largest foodtech platform, is expected to report a 28% compound annual revenue growth over FY25–28 and turn profitable at the Ebitda level by FY27. IIFL forecasted margin expansion in both food delivery and QC, with the latter projected to grow more than fourfold by FY28.