Swiggy Falls 5% As Brokerages Flag Quick Commerce Challenges

Shares of Swiggy fell more than 5% on the BSE today, hitting an intraday low of ₹280 apiece, as investors weighed continued losses and mixed brokerage views following the company’s Q1 FY27 results.

The stock later recovered some losses, trading 3.52% lower at ₹285.40 apiece at 13:32 IST. Swiggy’s market capitalisation stood at ₹78,903.5 Cr ($9.4 Bn) at the time.

The bearish stock momentum follows a mixed bag of financial disclosures from the consumer internet major. Swiggy reported a 34% YoY decline in consolidated net loss to ₹791 Cr in Q1 FY27, compared with ₹1,197 Cr a year earlier. 

Operating revenue increased 37% YoY and 7% QoQ to ₹6,812 C while total expenses rose 25% to ₹7,813 Cr. 

The company’s monthly transacting users grew 27.4% to 2.75 Cr, while B2C gross order value (GOV) increased 28% to ₹18,926 Cr.

Brokerages Give Mixed Views On Swiggy

Brokerages shared mixed views on Swiggy’s outlook, highlighting both the potential and challenges in its quick commerce business.

Nomura maintained a ‘Buy’ rating with a target price of ₹435, saying food delivery remained stable. The brokerage views that Instamart’s near-term losses could be funded from the cash generated via its food delivery vertical. It expects Instamart’s adjusted EBITDA losses at ₹3,100 Cr in FY27 and ₹2,300 Cr in FY28.

CLSA downgraded the stock to ‘Hold’ with a target price of ₹318, citing weak performance across food delivery and quick commerce, margin pressure and uncertainty around strategy changes.

Macquarie retained an ‘Underperform’ rating with a ₹230 target price, pointing to flat Instamart GOV growth, slower food delivery expansion and higher cash burn. It said the path towards Instamart profitability remained unclear.

Despite Thursday’s decline, Swiggy shares have gained nearly 20% in July, marking their strongest monthly performance since listing. 

The recent rally has also been supported by concerns around rival Zepto’s delayed IPO plans and valuation challenges, which could ease competitive pressure in quick commerce.

Instamart Hits Profitability Milestone

Swiggy’s biggest highlight from the June quarter was Instamart achieving contribution margin breakeven in May 2026, with contribution margin turning positive at 0.2% of GOV.

The improvement was supported by higher monetisation, with adjusted revenue per order rising to ₹108 during the quarter from ₹97 in Q4 FY26.

Instamart revenue jumped 53% to ₹1,232 Cr, while segment losses narrowed 18% to ₹651 Cr. The company expanded Instamart’s network to 1,171 dark stores across 131 cities, opening 28 new stores during the quarter.

Swiggy CEO Sriharsha Majety said the next phase of quick commerce competition would be driven less by delivery speed and more by differentiated product assortments.

“We delivered contribution breakeven exactly as we guided a year ago… As base-level assortment in quick commerce becomes increasingly commoditised, we believe our differentiated assortment strategy will be the engine for our next phase of growth,” Majety said.

Swiggy’s food delivery business reported 23% year-on-year revenue growth to ₹2,208 Cr, while segment profit increased 48% to ₹299 Cr.

However, margins faced pressure due to temporary operational issues, including higher delivery costs and order disruptions. The company reiterated its guidance of 18-20% GOV growth and a long-term adjusted EBITDA margin target of 5%.

Swiggy is also expanding beyond its core businesses, with budget-focused platform Toing now available in 50 cities. The company said most Toing users are either new or returning customers, indicating that the platform is helping expand its user base rather than shifting demand away from the main app.

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