Swiggy shares hit 52-week low after Rs 922-crore Q2 loss

Swiggy shares plunged on Friday after the company reported a September-quarter net loss of Rs 922 crore. Despite 36 per cent revenue growth, widening sequential losses, mounting pressure at Instamart and brokerage target cuts heightened investor concerns over profitability

New Delhi: Shares of Swiggy tumbled 17 per cent to hit a fresh 52-week low on Friday after the company reported a consolidated net loss of Rs 922 crore for the September quarter (Q2FY27).

The stock crashed as much as 17.22 per cent to hit an intraday as well as a 52-week low of Rs 174.90 on the BSE by 12:40 pm.

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At last count, the stock was trading at Rs 181, down about 14 per cent against the previous close of Rs 211.30.

The sharp sell-off reflects investor concerns over softer-than-expected performance in its key food delivery and quick-commerce businesses, alongside intensifying competition.

In Q2, Swiggy reported a consolidated net loss of Rs 922 crore in Q2 FY27, narrowing 15.6 per cent from Rs 1,092 crore a year ago but widening sequentially from Rs 791 crore in the June quarter.

Revenue from operations rose 36 per cent year-on-year to Rs 7,571 crore.

However, the company’s adjusted EBITDA loss widened to Rs 760 crore from Rs 695 crore a year ago and was higher than estimates.

The principal concern was Instamart, its quick-commerce business. Its adjusted EBITDA loss widened to Rs 895 crore from Rs 778 crore in Q1 FY27 and Rs 849 crore a year ago.

The quick-commerce platform’s gross order value (GOV) grew 31 per cent year-on-year to Rs 9,230 crore and net order value (NOV) growth accelerated to 13.4 per cent quarter-on-quarter, but contribution margin deteriorated to minus 1.4 per cent from minus 0.3 per cent in Q1 as growth was driven by customer incentivisation and higher fixed costs.

Additionally, analysts at the leading brokerages have cut their targets.

Global brokerages’ analysts — including Goldman Sachs, HSBC, CLSA, Bernstein, JPMorgan and Citi — have lowered their target prices.

According to Jefferies, Instamart losses remain a key issue and the current price does not even reflect the value of the food delivery business and cash holdings.