Swiggy shares have come under significant pressure over the past year, raising questions about whether the food delivery and quick-commerce company can stage a sustained recovery.
While improving profitability in its core food delivery business and efforts to reduce quick-commerce losses have strengthened the fundamental investment case, the stock’s technical structure remains weak.
In the previous session, the stock ended 2% higher at ₹234.05. It is now 49% away from its 52-week high of ₹460, hit in October 2025 and its 52-week low of ₹228.50, hit in in the previous session, October 16, 2026.
It has been under pressure recently, down 13% in 1 month, 14% in 3 months, 16% in 6 months and around 50% in the last 1 year.
Recently, domestic brokerage house Anand Rathi Share and Stock Brokers upgraded Swiggy to Buy, retaining its target price of ₹310, implying a potential upside of over 32%. However, technical analyst Jigar S Patel has advised caution, identifying key support and breakout levels that could determine the stock’s next move.
Swiggy fundamentals: Why Anand Rathi upgraded the stock
Anand Rathi said Swiggy was moving from a phase in which growth came at the expense of profitability towards one in which growth could increasingly support earnings. The brokerage highlighted the recovery in contribution margin, which improved from a loss of around 5.6% in Q4FY25 to contribution break-even in Q1FY27.
“The core Food Delivery segment continued to serve as primary profit generator. The segment recorded steady EBITDA margin of ~3.1% on a strong ~17.4% YoY expansion in GOV in Q1FY27,” Anand Rathi said in its October 16 research report.
Anand Rathi expects food delivery to record annual GOV growth of 18-20% over FY26-FY28, alongside further margin expansion.
The brokerage also expects cash flows from food delivery, together with treasury income, to cover operational losses from quick commerce by FY28 or the first half of FY29. Swiggy had a cash balance of approximately ₹140 billion in Q1FY27, according to the report.
Instamart’s planned shift towards a direct inventory-led model is another potential profitability driver. Anand Rathi estimates that this transition could add ₹4-5 per order to contribution margin, equivalent to an improvement of around 80-100 basis points. Instamart is also focusing on improving asset efficiency and expanding higher-margin non-grocery categories, which accounted for approximately 30% of its business, the brokerage said.
Anand Rathi retained its ₹310 target price, valuing the food delivery business at 30 times estimated FY28 adjusted EBITDA, at an approximately 15% discount to Zomato. The brokerage said Swiggy’s current valuation was attractive because investors were effectively getting exposure to quick commerce and dining-out without paying a significant additional premium.
“Considering attractive valuation at the CMP, we upgrade our rating on Swiggy to BUY with an unrevised TP of Rs310, assuming 30x FY28e adj. EBITDA to FD (~15% discount to Zomato),” Anand Rathi said.
However, the brokerage flagged intense competition and slower food delivery growth amid a consumption slowdown as key risks.
Swiggy technical outlook: Support, breakout level and stop-loss
Meanwhile, on the technical front, Jigar S Patel said Swiggy’s daily chart showed a weak technical structure, with the stock trading below all its key moving averages. This indicated that the prevailing trend remained under pressure and that the recovery lacked sufficient confirmation. The Relative Strength Index (RSI) had entered oversold territory, pointing to intensified selling pressure, although Patel cautioned that an oversold reading did not guarantee an immediate reversal.
“The stock may attempt to establish a base in the ₹225-240 zone, which will be crucial to watch for signs of stabilisation,” Patel said, highlighting the range as an important area for investors to monitor.
According to Patel, a sustained breakout above ₹255 would be needed to signal a meaningful improvement in momentum and strengthen the possibility of a recovery. Until the stock forms a stable base and crosses this level, he recommended a wait-and-watch approach rather than aggressive fresh buying.
For traders, the ₹225-240 zone is the key support area identified by Patel, while ₹255 is the technical breakout threshold. A confirmed stop-loss level was not specified in his commentary, so investors should avoid treating either the support zone or the breakout level as a formal stop-loss recommendation.
Swiggy’s outlook therefore presents two contrasting signals: Anand Rathi’s positive fundamental view and Patel’s caution on the charts. Investors should consider their time horizon and risk tolerance, monitor whether the stock stabilises around support, and look for a sustained move above ₹255 before interpreting the price action as a confirmed recovery.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
