Swiggy Ltd., the Indian online food‑delivery and quick‑commerce platform, saw its shares plunge as much as 14.68% on Friday, October 23, closing at ₹180.35 – a fresh 52‑week low on the National Stock Exchange. The sharp decline followed the company’s post‑market release of its second‑quarter FY27 earnings on Thursday.
Quarterly results and revenue growth
For the quarter ended September, Swiggy reported a consolidated net loss of ₹922 crore, an improvement over the ₹1,092 crore loss recorded in the same quarter of the previous fiscal year (July‑September 2025‑26). The narrowing of the loss was driven by a significant rise in revenue, which climbed to ₹7,571 crore in the September quarter from ₹5,561 crore a year earlier.
Despite the revenue surge, analysts highlighted that the company’s two core segments – food delivery and quick‑commerce – delivered mixed signals. The food‑delivery business posted gross order value (GOV) growth of 18% year‑on‑year, with margins improving by 60 basis points year‑on‑year and 30 basis points sequentially, according to Citi. Those figures were in line with expectations, suggesting resilience in the core delivery model.
In contrast, the quick‑commerce arm, branded Instamart, posted net order value (NOV) growth of 13% quarter‑on‑quarter, falling short of the 16% estimate. Contribution margins for the segment slipped 80 basis points sequentially, reaching –1% of GOV. Adjusted EBITDA losses in quick commerce stood at ₹890 crore, marginally above Citi’s forecast of ₹870 crore.
Analyst reactions and valuation concerns
Market participants reacted sharply to the earnings release. While Citi, Nomura, Jefferies and UBS retained positive ratings on the stock, each flagged the need for tighter execution and better control of quick‑commerce losses. CLSA, HSBC, Macquarie and Bank of America adopted a more cautious stance, pointing to a longer path to profitability and questioning Swiggy’s ability to close the performance gap with rival Eternal.
Bernstein trimmed its target price, citing weaker relative growth and heightened investor impatience. Conversely, Elara Capital upgraded its rating to “Buy” after the share‑price correction, indicating a belief that the dip may present a buying opportunity.
A recurring theme across the research notes was the relative resilience of food delivery versus the uncertainty surrounding Instamart’s growth and profitability. Most analysts lowered price targets even where they kept a positive rating, underscoring lingering doubts about the quick‑commerce segment’s trajectory.
Citi noted that Swiggy is exploring ways to expand its food‑delivery market share through a service called Toing, while also seeking to improve retention and monetisation on Instamart via a differentiated product assortment. CLSA observed that Instamart’s NOV growth accelerated to 13.4% sequentially, yet remained below expectations, and that losses in the segment were wider than anticipated. The firm also highlighted that the performance gap between Swiggy and Eternal has widened in both businesses, especially on profitability, and that Swiggy must demonstrate consistent improvement to restore investor confidence.
Nomura’s outlook emphasized the steady trajectory of Swiggy’s food‑delivery business, describing it as a potential cash‑generating engine capable of delivering ₹1,300–₹1,900 crore in EBITDA during FY27–FY28. However, the brokerage reiterated concerns over quick‑commerce execution, assigning no valuation to Instamart or its cash balances due to limited conviction in a turnaround. Nomura argued that the disappointment in quick‑commerce is already priced into the stock, making the current risk‑reward profile more favourable for investors.
Competitive pressure and market context
The earnings release also drew attention to Swiggy’s competitive environment. Rival Eternal posted comparatively stronger results, sharpening focus on Swiggy’s growth momentum and its progress toward profitability. The heightened competition, combined with the softer‑than‑expected performance in quick‑commerce, amplified investor concerns and contributed to the sharp sell‑off.
Overall, the market’s reaction underscores the delicate balance Swiggy must strike between sustaining revenue growth, narrowing losses, and delivering tangible improvements in its quick‑commerce unit. While the company’s food‑delivery arm continues to show resilience, the path to profitability for Instamart remains a pivotal factor influencing investor sentiment and future share‑price movements.
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