Swiggy Shares Surge 4% as Rival Zomato Climbs 11%; What’s Fueling the Rally in Food Tech Stocks?

Today is definitely a strong session for India's food delivery and quick commerce stocks, as Swiggy shares climbed over 4% on July 22, riding on the back of strong Q1 results from Eternal Ltd., the parent company of its biggest rival, Zomato. The surge in share price of Swiggy comes ahead of its own earnings report, which is due later this month.

Swiggy Share Price Today

As of 1:45 PM on Tuesday, Swiggy shares were trading at Rs. 412.90, up by 4.60%. The stock has gained 3.72% over the past five sessions. Analysts believe the performance of Eternal Ltd., which is Zomato and Blinkit's parent, is creating a sector-wide impact, and the market is now betting on a strong quarter for Swiggy as well, especially when there is very high competition in the quick commerce space.

Zomato Parent Eternal Ltd. Shares Rally to All-Time High

Shares of Eternal Ltd., listed under the ticker that covers both Zomato and Blinkit, were trading at Rs. 303.50, up a massive 11.70% at the time of writing. The stock has now jumped 14.57% in the last two days and surged 43.57% since listing in April 2025.

The main reason for the rally in Zomato's share price is because of Eternal's record-breaking Q1 FY26 results, particularly the performance of Blinkit, which overtook Zomato's food delivery vertical for the first time in revenue terms.

Eternal Q1 Results Highlight

As per the company's regulatory filing, Eternal Ltd.'s total revenue for the quarter rose 70% YoY to Rs. 7,167 crore. Blinkit's revenue alone jumped to Rs. 2,400 crore, surpassing Zomato's Rs. 2,261 crore food delivery revenue, which is a turning point in India's fast-growing quick commerce market.

However, the bottom line told a different story. Eternal's net profit fell 90% to Rs. 25 crore, compared to Rs. 253 crore a year ago, mainly because of the margin pressure. EBITDA came in at Rs. 115 crore, down 35% YoY and below expectations.

All Eyes on Swiggy's July 31 Earnings

With Swiggy's Q1 results scheduled for July 31, investor focus will be on how it responds to Blinkit's strong showing. Analysts expect management commentary on Swiggy Instamart, its quick commerce arm, to provide critical cues. The segment has been playing catch-up to Blinkit in terms of average order value (AOV), throughput rate (TR), and cost efficiency.

Elara Capital's Outlook on Swiggy

According to Elara Capital, Swiggy is expected to post a 33% sales CAGR from FY25-28E, with positive EBITDA and PAT by FY28 as losses in its quick commerce vertical narrow. The firm believes Swiggy's food delivery (FD) business is closing the profitability gap with Zomato and sees rerating potential as the company scales.

"We expect Instamart CM to turn positive by Q1 FY27, but progress on AOV, TR, and fixed costs warrants close monitoring. We value Swiggy at 2x EV/sales (50% of Blinkit), out-of-home consumption at 2.0x, supply chain at 2.5x, and platform innovation at 1.0x EV/sales." Elara Capital Note added.

Swiggy Share Price Target

The brokerage firm initiated coverage on Swiggy with an Accumulate rating and SOTP-based target price of Rs. 450 per share.