Swiggy Shares Drop 17 Percent to 52-Week Low Following Q2 Results
Shares of Indian foodtech major Swiggy fell to a record low as losses in its Instamart quick commerce division missed market expectations.
Swiggy shares plummeted 17.23% to a 52-week low of ₹174.90 on the BSE following second-quarter results that highlighted widening losses within its Instamart quick commerce arm. The stock decline reflects growing investor concern over execution and profitability in the competitive quick commerce sector.
While Swiggy’s consolidated net loss narrowed by 16% year-on-year to ₹922 Cr, it represented a 17% increase from the previous quarter. The company’s food delivery segment reported strong results with record profits and margins, but these gains were offset by a segment loss of ₹764 Cr in Instamart. Adjusted EBITDA losses for the quick commerce unit rose to ₹895 Cr.
Major brokerages, including Citi, CLSA, and Nomura, responded to the results by slashing target prices. Analysts cited the widening gap between Swiggy’s growth and industry rivals, alongside concerns regarding the company’s ability to scale Instamart sustainably. To address these issues, the company plans to transition to an inventory-led model starting in the third quarter.
Despite the market reaction, Swiggy management asserted that the quick commerce division’s losses peaked in the second quarter. The firm expects to see double-digit growth in order volume and margin improvements in the coming months as it shifts its operational strategy.