Swiggy Shares Crash 17%: Weak Quarterly Show Drags Stock Lower

New Delhi, October 23: Swiggy's stock crashed 17 per cent on Friday, reaching a new 52-week low after the food delivery major posted underwhelming results for the September quarter.

For the second quarter of FY27, the company recorded a consolidated net loss of Rs 922 crore. That figure represents a 15.6 per cent improvement from the Rs 1,092 crore loss a year ago, yet it marks a deterioration from the Rs 791 crore loss in the June quarter.

In afternoon trade at 2 pm, Swiggy shares stood at Rs 183.75 on the National Stock Exchange, down 12.94 per cent. Earlier in the session, the stock had hit Rs 206 on the upside and Rs 174.95 on the downside.

Investors appeared worried about the company's main food delivery and quick commerce operations, which fell short of expectations while competition grew more intense.

Quarterly operating income surged 36 per cent year-on-year to Rs 7,571 crore. However, the adjusted EBITDA loss increased to Rs 760 crore from Rs 695 crore in the year-ago period, exceeding analysts' projections.

The biggest concern remained Instamart. Its adjusted EBITDA loss grew to Rs 895 crore, up from Rs 778 crore in the first quarter of FY27 and Rs 849 crore a year before. Gross order value jumped 31 per cent on an annual basis to Rs 9,230 crore, and net order value rose 13.4 per cent from the previous quarter. Yet contribution margin fell from -0.3 per cent to -1.4 per cent, as growth came alongside higher customer incentives and greater fixed costs.

Amid this weakness, a number of global brokerages lowered their target prices on the stock. These include Goldman Sachs, HSBC, CLSA, Bernstein, JP Morgan and Citi.

Jefferies noted that Instamart's losses remain a serious issue. At the present market price, it said, the valuation does not seem to factor in the food delivery business or the company's cash balance.