Swiggy's share price has dropped nearly 50% over the past year, closing at ₹234.05 in the latest session, according to livemint.com. The stock is now 49% below its 52-week high of ₹460 reached in October 2025 and just above its 52-week low of ₹228.50 hit on October 16, 2026. Despite recent declines, domestic brokerage Anand Rathi upgraded Swiggy to Buy with a target price of ₹310, suggesting over 32% upside potential.
Anand Rathi's upgrade reflects Swiggy's shift from growth at the expense of profitability to a model where growth supports earnings. The brokerage noted an improvement in the contribution margin, which moved from a loss of 5.6% in Q4FY25 to break-even in Q1FY27. This recovery is driven by the core food delivery segment, which remains the primary profit generator. However, technical analyst Jigar S Patel cautioned investors to watch key support and breakout levels that could influence the stock's next movement.
Swiggy's stock performance highlights the challenges faced by food delivery and quick-commerce companies in balancing growth with profitability. The sector has seen similar volatility, with investors closely monitoring margins and operational efficiencies. Anand Rathi's positive stance contrasts with the technical weakness in the stock, reflecting broader market uncertainty about sustainable recovery in the space. The stock's recent 13% decline over one month underscores ongoing investor caution.
Swiggy's next earnings release will be closely watched for further signs of margin improvement and profitability. The stock's target price of ₹310 by Anand Rathi represents a key benchmark for investors assessing potential recovery. The company’s ability to maintain contribution margin break-even and expand profitability in its core food delivery business will be critical metrics in upcoming financial disclosures.