{"id":2877,"date":"2026-10-23T08:33:24","date_gmt":"2026-10-23T08:33:24","guid":{"rendered":"https:\/\/newsraise.com\/in\/2026\/10\/23\/swiggy-shares-tumble-after-q2-fy27-results\/"},"modified":"2026-10-23T08:33:24","modified_gmt":"2026-10-23T08:33:24","slug":"swiggy-shares-tumble-after-q2-fy27-results","status":"publish","type":"post","link":"https:\/\/newsraise.com\/in\/2026\/10\/23\/swiggy-shares-tumble-after-q2-fy27-results\/","title":{"rendered":"Swiggy shares tumble 15% after Q2 FY27 results raise profit concerns"},"content":{"rendered":"\n<!-- Quick Adsense WordPress Plugin: http:\/\/quickadsense.com\/ -->\n<div class=\"9fece8afa224fd09e54b043d0febfb58\" data-index=\"1\" style=\"float: none; margin:10px 0 10px 0; text-align:center;\">\n<script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script>\r\n<!-- NR ATF -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-8898941184964366\"\r\n     data-ad-slot=\"4839033563\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\n<\/div>\n<p>Swiggy Ltd., the Indian online food\u2011delivery and quick\u2011commerce platform, saw its shares plunge as much as 14.68% on Friday, October 23, closing at \u20b9180.35 \u2013 a fresh 52\u2011week low on the National Stock Exchange. The sharp decline followed the company\u2019s post\u2011market release of its second\u2011quarter FY27 earnings on Thursday.<\/p>\n<h2>Quarterly results and revenue growth<\/h2>\n<p>For the quarter ended September, Swiggy reported a consolidated net loss of \u20b9922 crore, an improvement over the \u20b91,092 crore loss recorded in the same quarter of the previous fiscal year (July\u2011September 2025\u201126). The narrowing of the loss was driven by a significant rise in revenue, which climbed to \u20b97,571 crore in the September quarter from \u20b95,561 crore a year earlier.<\/p>\n<p>Despite the revenue surge, analysts highlighted that the company\u2019s two core segments \u2013 food delivery and quick\u2011commerce \u2013 delivered mixed signals. The food\u2011delivery business posted gross order value (GOV) growth of 18% year\u2011on\u2011year, with margins improving by 60 basis points year\u2011on\u2011year and 30 basis points sequentially, according to Citi. Those figures were in line with expectations, suggesting resilience in the core delivery model.<\/p>\n<p>In contrast, the quick\u2011commerce arm, branded Instamart, posted net order value (NOV) growth of 13% quarter\u2011on\u2011quarter, falling short of the 16% estimate. Contribution margins for the segment slipped 80 basis points sequentially, reaching \u20131% of GOV. Adjusted EBITDA losses in quick commerce stood at \u20b9890 crore, marginally above Citi\u2019s forecast of \u20b9870 crore.<\/p>\n<h2>Analyst reactions and valuation concerns<\/h2>\n<p>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\u2011commerce losses. CLSA, HSBC, Macquarie and Bank of America adopted a more cautious stance, pointing to a longer path to profitability and questioning Swiggy\u2019s ability to close the performance gap with rival Eternal.<\/p>\n<p>Bernstein trimmed its target price, citing weaker relative growth and heightened investor impatience. Conversely, Elara Capital upgraded its rating to \u201cBuy\u201d after the share\u2011price correction, indicating a belief that the dip may present a buying opportunity.<\/p>\n<p>A recurring theme across the research notes was the relative resilience of food delivery versus the uncertainty surrounding Instamart\u2019s growth and profitability. Most analysts lowered price targets even where they kept a positive rating, underscoring lingering doubts about the quick\u2011commerce segment\u2019s trajectory.<\/p>\n<p>Citi noted that Swiggy is exploring ways to expand its food\u2011delivery 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\u2019s 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.<\/p>\n<p>Nomura\u2019s outlook emphasized the steady trajectory of Swiggy\u2019s food\u2011delivery business, describing it as a potential cash\u2011generating engine capable of delivering \u20b91,300\u2013\u20b91,900 crore in EBITDA during FY27\u2013FY28. However, the brokerage reiterated concerns over quick\u2011commerce execution, assigning no valuation to Instamart or its cash balances due to limited conviction in a turnaround. Nomura argued that the disappointment in quick\u2011commerce is already priced into the stock, making the current risk\u2011reward profile more favourable for investors.<\/p>\n<h2>Competitive pressure and market context<\/h2>\n<p>The earnings release also drew attention to Swiggy\u2019s competitive environment. Rival Eternal posted comparatively stronger results, sharpening focus on Swiggy\u2019s growth momentum and its progress toward profitability. The heightened competition, combined with the softer\u2011than\u2011expected performance in quick\u2011commerce, amplified investor concerns and contributed to the sharp sell\u2011off.<\/p>\n<p>Overall, the market\u2019s reaction underscores the delicate balance Swiggy must strike between sustaining revenue growth, narrowing losses, and delivering tangible improvements in its quick\u2011commerce unit. While the company\u2019s food\u2011delivery arm continues to show resilience, the path to profitability for Instamart remains a pivotal factor influencing investor sentiment and future share\u2011price movements.<\/p>\n\n<div style=\"font-size: 0px; height: 0px; line-height: 0px; margin: 0; padding: 0; clear: both;\"><\/div>","protected":false},"excerpt":{"rendered":"<p>Swiggy\u2019s stock fell nearly 15% to a 52\u2011week low after the company posted a narrower loss but weaker\u2011than\u2011expected growth in its quick\u2011commerce arm, prompting caution from analysts.<\/p>\n","protected":false},"author":2,"featured_media":2878,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[299],"tags":[3206,3107,3205,2188,551],"class_list":["post-2877","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-analyst-outlook","tag-food-delivery","tag-q2-fy27-earnings","tag-quick-commerce","tag-swiggy","entry"],"_links":{"self":[{"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/posts\/2877","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/comments?post=2877"}],"version-history":[{"count":0,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/posts\/2877\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/media\/2878"}],"wp:attachment":[{"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/media?parent=2877"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/categories?post=2877"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/tags?post=2877"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}