Swiggy’s stock has dropped 36% from its post-listing high, returning to its IPO price of ₹390. Despite strong revenue growth, the company’s widening losses—driven by aggressive quick commerce expansion—have raised investor concerns. Brokerages remain divided on its outlook, with some still projecting long-term upside potential.
Swiggy, India’s leading food delivery and quick commerce platform, has seen its stock price fall sharply—down 36% from its peak—bringing it back to its IPO issue price of ₹390. The correction follows the company’s Q2 FY26 earnings report, which revealed a significant net loss despite robust top-line growth.
While Swiggy reported a 54% year-on-year revenue increase, its net loss widened to ₹1,092 crore, largely due to continued investments in Instamart and other quick commerce verticals. The market reaction reflects investor caution over profitability timelines and the sustainability of high cash burn in a competitive sector.
Key highlights from the market update include
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Swiggy’s stock has erased all post-IPO gains, now trading near its issue price of ₹390.
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The company posted a 54% revenue jump in Q2 FY26, signaling strong demand across food delivery and quick commerce.
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Net loss widened to ₹1,092 crore, driven by Instamart expansion and increased marketing spend.
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Brokerages remain split—some cite long-term potential in AI-driven logistics and market leadership, while others flag near-term margin pressures.
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Citi has maintained a ‘Buy’ rating with a target price of ₹480, implying a 30% upside from current levels.
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Concerns persist over profitability timelines, especially as competition from Zomato and ONDC intensifies.
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Swiggy’s management reiterated its focus on operational efficiency and long-term value creation.
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Analysts are watching for signs of cost rationalization, monetization of Instamart, and improved contribution margins in upcoming quarters.
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The stock’s return to IPO levels may offer a re-entry point for long-term investors, but near-term volatility is expected to persist.
Sources: The Economic Times, Financial Express.