Swiggy shares crash nearly 15% post-Q2 earnings; what spooked investors

Shares of Swiggy, the online food delivery and quick-commerce platform, fell as much as 14.68% to hit a fresh 52-week low of ₹180.35 apiece on the NSE on Friday, October 23, after the company reported its Q2 FY27 results post-market hours on Thursday.

The sharp sell-off reflects investor concerns over softer-than-expected performance in its key food delivery and quick-commerce businesses, alongside intensifying competition. Comparatively stronger results from rival Eternal have also put the spotlight on Swiggy’s growth momentum and progress towards improving profitability.

Swiggy Q2 FY27 earnings

Food delivery and quick commerce firm Swiggy on Thursday reported a narrower consolidated net loss of ₹922 crore for the quarter ended September (Q2 FY27), helped by strong revenue growth.

Swiggy's net loss stood at ₹1,092 crore during the July-September quarter of 2025-26.

Revenue from operations rose to ₹7,571 crore in the September quarter, up from ₹5,561 crore in the same period last financial year, according to an exchange filing.

Swiggy Q2 results: What are analysts saying?

While CITI, Nomura, Jefferies and UBS remain positive on the stock, they see the need for better execution and tighter control over quick-commerce losses. CLSA, HSBC, Macquarie and BofA are more cautious, flagging a longer road to profitability and questions over Swiggy’s ability to close the performance gap with Eternal.

Bernstein has also cut its target, citing weak relative growth and investor impatience, while Elara Capital has upgraded its rating to Buy after the share-price correction.

A common theme across the reports is that food delivery remains relatively resilient, but Instamart’s growth and profitability are the key concerns. Most analysts have lowered their price targets, even where they retain positive ratings.

CITI

CITI said Swiggy’s food delivery business performed in line with expectations, with gross order value (GOV) growing 18% year-on-year and margins improving by 60 basis points YoY and 30 basis points sequentially.

However, quick-commerce net order value (NOV) growth came in at 13% quarter-on-quarter, below its estimate of 16%, while contribution margins declined 80 basis points sequentially to -1% of GOV.

Adjusted EBITDA losses in quick commerce stood at ₹890 crore, slightly higher than CITI’s estimate of ₹870 crore.

The investment firm noted that Swiggy is exploring ways to expand its food delivery market through Toing and improve retention and monetisation on Instamart through a differentiated product assortment.

CLSA

CLSA said Instamart’s NOV growth accelerated sequentially to 13.4% but remained below expectations, while losses were wider than anticipated. Food delivery adjusted EBITDA was in line with its estimates but missed consensus expectations.

The investment firm said the performance gap between Swiggy and Eternal had widened in both businesses, particularly on profitability.

It believes Swiggy will need to demonstrate consistent improvement over the coming quarters to rebuild investor confidence in Instamart’s growth and profitability turnaround.

Nomura

Nomura said Swiggy’s food delivery business continues to follow a steady trajectory and remains a potential cash-generating engine, with the brokerage expecting it to generate ₹1,300–1,900 crore in EBITDA in FY27–FY28.

However, execution in quick commerce continues to fall short of expectations.

Nomura has assigned no value to Instamart or its cash balances in its valuation, citing limited conviction in the segment’s ability to deliver a turnaround.

It believes the disappointment in quick commerce is already reflected in the share price, making the risk-reward more favourable.