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Rs 9,000 crore wiped out in a day: Why Swiggy investors are losing patience with Instamart

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Rs 9,000 crore wiped out in a day: Why Swiggy investors are losing patience with Instamart

Rs 9,000 crore wiped out in a day: Why Swiggy investors are losing patience with Instamart

Swiggy shares plunged on Friday, wiping out around ₹9,000 crore in market value as widening Instamart losses overshadowed food delivery growth. Following Q2 results, brokerages cut their price targets, citing deteriorating quick-commerce profitability. Instamart’s adjusted EBITDA loss widened to ₹895 crore from ₹778 crore, while its contribution margin deteriorated to -1.4% despite 13.4% sequential growth in net order value.

Swiggy investors are running out of patience with the company’s quick commerce ambition. The stock plunged 15% to ₹179.65 on the BSE on Friday, wiping out roughly ₹9,000 crore in market value in a single session as widening Instamart losses overshadowed steady growth in food delivery. The selloff followed a series of brokerage downgrades and target price cuts after Swiggy’s Q2 results exposed the cost of pursuing growth in quick commerce. JM Financial maintained its “REDUCE” rating and cut its price target to ₹200 from ₹255, while Nuvama reduced its target to ₹200 from ₹255. Nomura retained a Buy rating but lowered its target to ₹300 from ₹435. Emkay Global cut its target to ₹310 from ₹350. Advt

The common concern was Instamart’s deteriorating profitability. 3% in the previous quarter. Adjusted EBITDA losses widened to ₹895 crore from ₹778 crore. The growth came at a price as Swiggy added 69 dark stores during the quarter, taking its total network to 1,240 stores. Orders per dark store rose to 1,192 from 1,089, but analysts attributed the improvement to aggressive investments.


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