Swiggy stock rises 9%, logs best week of 2025

Swiggy’s stock jumped over 9% this week, its biggest gain of 2025, marking five straight weeks of growth.

This rebound follows a dip to record lows last month due to losses in quick commerce.

Analysts at Morgan Stanley rated the stock “overweight,” citing better food delivery performance and closing margins with Zomato.

Swiggy’s “Bolt” feature now contributes 12% to 13% of total orders, and both Swiggy and Zomato are seeing margin improvements.

Additionally, Morgan Stanley raised India’s quick commerce forecast to US$57 billion by 2030, with Swiggy shares still 14% below the target price.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Quick commerce represents both opportunity and challenge for Swiggy

India’s quick commerce market is projected to grow dramatically from $300 million in 2022 to $7.1 billion by FY 2025, with expectations of reaching $35 billion by 2030 1.

This growth explains Morgan Stanley’s decision to raise their addressable market estimate to $57 billion by 2030 and why investors are becoming more optimistic about Swiggy’s prospects.

However, the sector presents a profitability paradox. While quick commerce accounts for approximately 50% of all e-commerce grocery sales in India 2, it has been a source of significant losses for Swiggy, contributing to their overall net loss of ₹799 crore in Q3 FY25 3.

The competitive landscape is intensifying with Swiggy’s Instamart trailing Zomato’s Blinkit, which delivers 3.6 lakh more orders daily 4, forcing both companies to invest heavily in infrastructure and marketing.

This tension between growth potential and current profitability helps explain Swiggy’s volatile stock performance, which has declined 38% year-to-date despite the recent rally 3.

2️⃣ Food delivery remains the profitable core despite quick commerce hype

Swiggy’s “Bolt” delivery innovation now contributes 12-13% of its overall food delivery orders, giving the company a slight edge over Zomato in their core business according to analysts.

This focus on food delivery execution is crucial as the segment offers better margins. Both Swiggy and Zomato operate in what analysts describe as a “duopoly business” where food delivery margins are improving for both companies 3.