Swiggy Share Price Recovers 32% from May Lows, Trades Near Listing Price: What Should Investors Do?

After a sharp correction in May, shares of online food delivery platform Swiggy have made a notable comeback, rising nearly 32% from their lows, and now trade close to their listing price. This recovery has rekindled investor interest in the stock, especially as the company inches closer to profitability and capitalizes on India's expanding digital consumption trends. But the big question for retail and institutional investors alike is: What next for Swiggy’s stock?

Swiggy’s Stock Performance: A V-Shaped Comeback

Swiggy, which debuted on the stock exchanges earlier this year at ₹300 per share, had seen its share price decline to a low of around ₹225 in May, largely due to profit-booking and broader market volatility impacting new-age tech stocks. However, since then, the stock has rebounded sharply, currently hovering near ₹297-₹300 levels.

This 32% recovery has come on the back of improved investor sentiment, favorable updates on user metrics, and a pickup in order volumes during the summer months.

“The recovery in Swiggy’s stock reflects not just a market bounce but also the company’s improving unit economics. Investors are seeing more clarity on its road to profitability,” said Rajiv Mehta, Senior Analyst at YES Securities.

What Triggered the Recovery?

Several factors have contributed to Swiggy’s share price turnaround:

1. Path to Profitability

Swiggy recently revealed that it had achieved profitability in its food delivery business at the EBITDA level, a major milestone that investors have been closely monitoring.

“Profitability is the key theme in India’s tech IPO space. Swiggy’s ability to post profits in food delivery — its core business — signals discipline in cost management and pricing strategy,” said Neha Agarwal, Tech Sector Specialist at Motilal Oswal.

2. Surge in Order Volumes

Summer typically brings higher food delivery orders, and Swiggy has reportedly seen increased demand due to heatwaves and IPL promotions. Its average order value (AOV) also saw a marginal uptick.

3. Investor Rotation into Digital Plays

As concerns over U.S. inflation ease and domestic consumption remains strong, investors have begun rotating back into digital platform stocks with strong user bases and potential for monetization.

4. Valuation Comfort

After the May correction, Swiggy was trading at a more attractive valuation compared to Zomato and other peers. This offered a better risk-reward opportunity to long-term investors.

Market Context: Tech IPOs Still a Mixed Bag

While Swiggy’s stock recovery is noteworthy, the broader picture for tech IPOs in India remains mixed. Zomato, Paytm, and Nykaa have had volatile post-listing journeys. Market participants remain divided on how to price growth versus profitability.

Swiggy’s performance is particularly being watched in comparison to Zomato, which has a longer listing history and has delivered significant gains in recent months after consistent profitability.

“Zomato and Swiggy are now in a healthy competition not just in the market but on investor dashboards. The one that executes faster on profitability and innovation will win greater investor trust,” noted Anshul Sharma, Portfolio Manager at JM Financial.

What Should Investors Do Now?

Swiggy’s near-return to its IPO price raises important strategic questions for investors — whether to hold, accumulate, or book profits. Here's a breakdown of expert perspectives:

✅ Bullish View

• Analysts optimistic about India’s consumption economy believe that Swiggy has the advantage of strong brand recall, a growing user base, and expanding verticals like Instamart.

• A potential listing in international markets or acquisition-led expansion could unlock further value.

“We believe Swiggy can outperform over the next 12-18 months if it maintains margin discipline and scales Instamart without bleeding cash,” said Sneha Bhandari, Equity Research Head at Axis Securities.

⚠️ Cautious View

• Some experts advise caution given the competitive intensity in food delivery and concerns about profitability in adjacent ventures.

• Valuations may seem stretched if growth in orders slows post-summer.

“Investors should be prepared for near-term volatility. A staggered investment approach may be better than lump-sum buying at current levels,” said Harshad Jain, Director at Ambit Capital.

🔄 Neutral to Hold Strategy

• Long-term investors who got in at the IPO may consider holding the stock as it stabilizes around the listing price, especially if they believe in India’s digital consumption narrative.

• Those waiting for re-entry can monitor price action for consolidation between ₹280-₹300 as a base zone.

Swiggy’s recovery is a positive signal in a volatile tech IPO environment, but sustained gains will depend on how well the company executes on its profitability path and monetization strategies in the coming quarters. While the recent bounce has created excitement, investors are advised to balance optimism with realism.

As always, those with a long-term horizon and higher risk appetite may consider accumulating on dips, while short-term traders should watch key support/resistance levels closely before making aggressive bets.