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Swiggy Shares Plunge 17% To 52-Week Low After Q2, Brokerages Cut Price Targets

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Swiggy Shares Plunge 17% To 52-Week Low After Q2, Brokerages Cut Price Targets

Foodtech major Swiggy’s shares plunged as much as 17.23% to a 52-week low of ₹174.90 on the BSE today, a day after its Q2 FY27 results showed widening losses at quick commerce arm Instamart.

The stock pared some losses to trade at ₹181.50, down 14.10%, at 11:21 IST. Its market capitalisation stood at ₹50,099.69 Cr (about $5.2 Bn) at that time.

Several brokerages lowered their price targets following the results, citing higher-than-expected quick commerce losses and concerns over Instamart’s growth and execution. However, most retained their existing ratings.

Swiggy’s consolidated net loss narrowed 16% YoY to ₹922 Cr in Q2 FY27 but widened 17% from ₹791 Cr in the preceding quarter. Operating revenue rose 36% YoY to ₹7,571 Cr.

Instamart’s adjusted EBITDA loss increased to ₹895 Cr from ₹849 Cr a year earlier and ₹778 Cr in Q1 FY27, offsetting an improvement in food delivery profitability.

Citi retained its ‘Buy’ rating but cut its target price to ₹330. It highlighted 18% YoY growth in food delivery gross order value (GOV), alongside margin improvements of 60 basis points YoY and 30 basis points QoQ. However, Instamart’s net order value (NOV) grew around 13% sequentially, below its estimate of 16%, while losses exceeded expectations.

CLSA retained its ‘Outperform’ rating but lowered its target price to ₹262. 4% sequential NOV growth fell short of expectations, while losses were higher than anticipated. The brokerage flagged a widening gap between Swiggy and Eternal in growth and profitability, adding that Instamart needs to deliver consistent improvements to rebuild investor confidence.


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