Swiggy Share Price: Investors of food delivery company Swiggy got a big shock in the stock market today i.e. 23rd October. As soon as the market opened, the company’s shares sold off so strongly that they fell 14 percent. This share fell to Rs. The level of 180.20 has been reached. The biggest reason for this big drop in the stock is the September quarter results of FY 2026-27. The performance of the company has not been as per market expectations. In particular, this company, which runs Instamart, has suffered huge losses in its quick commerce business. After the results of rival company ‘Eternal’ came out this week, all eyes of the market were on the profits of this sector. But Swiggy’s poor numbers disappointed everyone.
The damage figures were worse than expected
If we look at Swiggy’s second quarter results, the company has definitely tried to reduce its losses, but it is far behind market estimates. The company’s net loss for the quarter was Rs. 1,092 crore down to Rs. 922 crore has been done. Similarly EBITDA loss also Rs. 798 crore down to Rs. 770 crore has been done. The good thing is that the company’s total revenue has increased from Rs 5,561 crore to Rs 7,571 crore year-on-year. If we talk about the food delivery business, its growth has been 17.2 percent, while the market was expecting a growth of 19 percent. Food delivery margin has been 3.4 percent. While the net order value of Kwik-Commerce has been recorded at 33.3 percent.
The company plans on this growth
Despite the weak results, the company’s management has issued its guidance for fiscal 2027. The management says that the target of 18 to 20 per cent growth in the food delivery business will be achieved. Adjusted EBITDA margin in this segment is possible to reach 5 percent. According to the company, Kwik-Commerce’s contribution margin will be in the range of 0 to 100 basis points. Apart from this, the IOCC transition will start from the middle of the third quarter. The move will directly support the company’s margins by 80 basis points.
Brokerage firms cut target prices
After the quarterly results, all major brokerage houses expressed concern over the profitability of Swiggy’s fast-trading operations. Its direct impact is being seen on the stock prices today. While maintaining a ‘hold’ rating on Swiggy, brokerage firm HSBC raised its target price to Rs. 315 to Rs. 240 per share. HSBC believes operating performance will improve in the second quarter, but has less confidence in long-term growth guidance. Instamart’s slow growth and declining market share in food delivery is a concern. The pressure of increasing competition in the market is also evident.
While brokerage firm Jefferies has given the stock a ‘buy’ rating, the target price has been cut to Rs. 330 has been done. According to Jefferies, Kwik-Commerce’s adjusted EBITDA loss widened to Rs. 900 crore, the highest in three quarters. The company has underperformed compared to Eternal. Minimizing quick-commerce losses is critical to unlocking the stock’s true value.
Apart from this, Citi also has a ‘Buy’ rating with a target price of Rs. 390 to Rs. 330 done. Citi says the company is looking for new avenues for sustainable growth. On the other hand, BofA has given Swiggy a ‘Neutral’ rating and a target of Rs. 275 to Rs. 245 have done. BofA also expressed concern about weak fast-trade growth and mounting losses.
