Swiggy Shares Drop 5% Amid Analyst Concerns Over Quick Commerce Challenges
Swiggy's stock declined over 5% on the Indian stock exchange following its quarterly results and mixed brokerage views on the challenges within its quick commerce business.
Swiggy, the Indian food delivery platform, saw its shares fall more than 5% on the BSE on Tuesday, hitting an intraday low of ₹280 per share. The decline occurred as investors processed the company's latest quarterly results and faced varying opinions from market analysts regarding its quick commerce operations.
The company reported a 34% year-over-year reduction in its consolidated net loss for the first quarter, which stood at ₹791 crore compared to ₹1,197 crore a year prior. Operating revenue increased by 37% to ₹6,812 crore, while total expenses rose by 25% to ₹7,813 crore.
Brokerage firms offered divergent views on Swiggy's outlook. Nomura maintained a 'Buy' rating with a price target of ₹435, citing stability in food delivery. Conversely, CLSA downgraded the stock to 'Hold' with a target price of ₹318, expressing concerns about weak performance and margin pressures in both food delivery and quick commerce. Macquarie retained an 'Underperform' rating and a ₹230 target price, highlighting flat growth in quick commerce and increased cash burn.
Despite the day's decline, Swiggy shares have gained nearly 20% in July. A key development for Swiggy's quick commerce arm, Instamart, was achieving contribution margin breakeven in May 2026. CEO Sriharsha Majety stated that future competition in quick commerce will likely focus on differentiated product assortments rather than solely delivery speed. The core food delivery business continued to grow, though its margins faced pressure from operational issues.