Swiggy shares fell 13.8% to a 52-week low of Rs 182.20 on the BSE on October 23, 2026, after its September-quarter results showed a wider sequential net loss despite strong revenue growth. Several brokerages cut their price targets, citing persistent losses and uncertainty over the path to profitability at quick-commerce business Instamart.
Key Takeaways
- Quarterly revenue rose 36%, but the net loss widened from the preceding June quarter.
- Five brokerages lowered their price targets, although several retained positive ratings.
- Instamart’s order-value growth has not resolved concerns about its path to profitability.
Table of Contents
- Swiggy shares slide as losses overshadow revenue growth
- Lower targets do not mean uniform rating downgrades
- Instamart profitability remains the central concern
- Conclusion
Swiggy shares slide as losses overshadow revenue growth
For the second quarter ended September 30, 2026, Swiggy reported revenue from operations of Rs 7,571 crore, up 36% year on year. Its consolidated net loss narrowed to Rs 922 crore from Rs 1,092 crore a year earlier, but widened from Rs 792 crore in the June quarter.
The comparisons point in different directions: the net loss improved by Rs 170 crore year on year but deteriorated by Rs 130 crore sequentially. Consolidated adjusted EBITDA loss also widened to Rs 760 crore from Rs 695 crore a year earlier, showing that revenue growth did not translate into an improvement in that earnings measure.
Swiggy’s September-quarter disclosure listings include a shareholder letter, results press release and earnings-call outcome for the period, alongside the outcome of its October 22 board meeting. The listings identify the relevant company disclosures but do not themselves contain the financial figures.
| Item | Details |
|---|---|
| Jefferies | New price target: Rs 330; previous target not supplied. |
| Nomura | Price target cut to Rs 300 from Rs 435; Buy retained. |
| Bernstein | Price target cut to Rs 350 from Rs 430; Outperform retained. |
| Motilal Oswal | New price target: Rs 280; previous target not supplied. |
| Elara Capital | Price target cut to Rs 300 from Rs 350; upgraded to Buy from Accumulate. |
Lower targets do not mean uniform rating downgrades
Jefferies said adjusted EBITDA losses had reached a three-quarter high and raised its loss estimates over its forecast period. It also lowered the valuation multiple applied to food delivery, arguing that reducing quick-commerce losses remains essential to improving investor confidence.
Nomura retained its Buy rating but expects adjusted EBITDA margin expansion to remain constrained over the next 12 months. It cited competition from Eternal and cut its fiscal 2028 forecast margin by 40 basis points to 4%. Its food-delivery gross order value growth forecasts remained at 18% for fiscal 2027 and 17% for fiscal 2028; the former is within Swiggy’s 18%–20% guidance.
Bernstein retained Outperform, while Elara Capital upgraded Swiggy to Buy from Accumulate despite reducing its target. Elara’s rating change followed a 22% share-price decline over three months. These calls distinguish lower analyst price expectations from a wholesale shift to negative recommendations.
Instamart profitability remains the central concern
Instamart’s gross order value, or GOV, increased 31% year on year to Rs 9,230 crore from Rs 7,022 crore. Nevertheless, broker commentary focused on whether growth can generate sufficient operating leverage to reduce losses.
Motilal Oswal lowered its fiscal 2026–2030 net order value compound annual growth assumption to 32% from 38%. The brokerage said weaker growth and competitive intensity could delay operating leverage and extend the period of losses.
The core food-delivery business also faced scrutiny. Its GOV grew 17.7% year on year, at the lower end of company guidance. Bernstein contrasted growth of roughly 18% with Zomato’s 21.5% and attributed much of the gap to cannibalisation from Swiggy’s Toing offering. That explanation is the brokerage’s assessment, rather than a separately established cause.
Conclusion
The results left Swiggy with faster revenue growth but a weaker sequential loss profile. The next quarterly results will provide a checkpoint for whether Instamart can narrow losses while food delivery sustains growth.
Read More News
Disclaimer
This FinanceVelix article provides general information, not personalized financial, investment, legal, or tax advice. Market prices, interest rates and economic conditions can change; investments carry a risk of loss. Facts reflect the material available when published and may change. Check important information independently and consult a qualified professional when needed. Mentioning an asset, company, or service is not an endorsement.
