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  5. Swiggy shares fall over 5% following Q1 results; here’s what analysts at Nomura, Morgan Stanley, Bernstein say

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Swiggy shares fall over 5% following Q1 results; here’s what analysts at Nomura, Morgan Stanley, Bernstein say

Abha Raverkar
By Abha Raverkar

5 min read | Updated on July 31, 2026, 11:53 IST

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SUMMARY

Swiggy Q1 results: Its revenue from operations surged 37.31% YoY to ₹6,812 crore in Q1 FY27, as against ₹4,961 crore in the year-ago period.

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SWIGGY
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Swiggy shares, July 31, 2026

Swiggy saw its consolidated net loss narrow to ₹791 crore in Q1 FY27. | Image: Shutterstock

Swiggy share price: Shares of on-demand convenience platform Swiggy declined as much as 5.31% to hit an intraday low of ₹280.20 per unit in early trade on the National Stock Exchange (NSE) on Friday, July 31, as the company reported its earnings for the first quarter of the 2026-27 financial year (Q1 FY27).
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At around 11:35 AM, the stock was trading 3.30% lower at ₹286.15 per equity share.

The scrip has gained 14% in the past week and more than 19% over the month. However, on a year-to-date (YTD) basis, it has fallen 27%.

While the share hit a 52-week high of ₹474 on September 19, 2025, it touched a year’s low of ₹235.75 apiece on June 30, 2026.

Swiggy Q1 result snapshot

Swiggy saw its consolidated net loss narrow to ₹791 crore in Q1 FY27, compared with a net loss of ₹1,197 crore in the corresponding period of the preceding fiscal year, according to a regulatory filing dated July 30.

Its revenue from operations surged 37.31% year-on-year (YoY) to ₹6,812 crore during the quarter under review, as against ₹4,961 crore in the April-June quarter of the 2025-26 fiscal year (Q1 FY26).

At an operational level, its EBITDA (earnings before interest, tax, depreciation and amortisation) loss stood at ₹650 crore in the quarter ended June 30, 2026, reflecting a 31.87% YoY fall from ₹954 crore in the year-ago period.

The gross order value (GOV) of its food delivery business grew 17.4% YoY to ₹9,490 crore, while its adjusted EBITDA increased by ₹100 crore YoY to ₹292 crore.

Instamart’s GOV surged 39.8% YoY to ₹7,907 crore. Its contribution margin improved 440 basis points (bps) YoY to -0.2%, with adjusted EBITDA losses down by ₹80 crore quarter-on-quarter (QoQ).

What analysts said

Analysts at Nomura said that Swiggy’s food delivery business continued on a steady path, adding that Instamart intends to operate in the -100 bps to 0 bps contribution margin range in the near term.

The analysts expect Swiggy’s cash losses in Instamart to continue in FY27-28 and project Instamart to have adjusted EBITDA losses of ₹31 billion in FY27 and ₹23 billion in FY28, as compared to an earlier estimate of ₹21 billion and ₹5 billion, respectively. However, the analysts noted that Swiggy can fund the losses from the cash generated from its food delivery business and cash balance of ₹143 billion.

In a note, analysts at CLSA stated that Swiggy reported weak first quarter results across food delivery and quick commerce, with the food delivery business’s GOV growth slightly missing estimates and lagging behind Zomato.

Its adjusted EBITDA margin saw a bigger miss, due to lower contributions from higher delivery costs, along with the impact of Toing, which was not visible for Zomato. Its quick commerce business’s net order value (NOV) growth missed the already-low expectations, and while the contribution margin was broadly in line with estimates, its adjusted EBITDA missed.

Analysts at CLSA found the changes in its strategy confusing for investors, and as Play Store ratings suggested, was confusing for consumers, they said.

In an analyst note, Macquarie said that Instamart’s GOV was flat sequentially, with no improvements seen in key metrics such as dark store throughput and monthly transacting users (MTU). Its food delivery business’s GOV missed estimates at 17% YoY growth, alongside a mild decline in adjusted EBITDA margin to 3.1% of GOV. Furthermore, its peer Zomato saw better growth and steady margin, as per the analysts.

Swiggy’s management maintained its long-term guidance for an 18-20% compound average growth rate (CAGR), along with a steady-state adjusted EBITDA margin of 5% of GOV. At a consolidated level, Swiggy’s cash burn in the quarter was 15% higher QoQ at $75 million.

While Swiggy outlined a path to adjusted EBITDA breakeven in Instamart, both timeline and trajectory were opaque, analysts at Macquarie added.

According to analysts at HSBC, Swiggy’s quick commerce turned contribution margin breakeven as growth slowed. Its overall cash burn was slightly lower than the past few quarters. While Swiggy reiterated punchy long-term QC targets, execution improvements remain key.
Morgan Stanley analysts noted that Swiggy missed on its adjusted revenue and EBITDA loss consensus in quick commerce, and recorded higher-than-expected losses in supply chain and platform innovations. However, it beat adjusted EBITDA expectations in the food delivery segment, and it saw green shoots in quick commerce GOV growth in July. Its investment to drive growth accelerated, while keeping its contribution margin within a tight band.
Analysts at Bernstein noted that Swiggy’s quick commerce segment witnessed a favorable setup for a re-rating, and the company is going through the unenviable task of chartering its Instamart business through a tough phase in full public view.

However, its Q1 results were strong and the next few quarters are expected to be stronger. Furthermore, the news about Zepto’s initial public offering (IPO) being postponed is likely to improve the competitive environment.

Swiggy has a total market capitalisation of ₹78,944.97 crore as of July 31, 2026, according to data on the NSE.

Disclaimer: This article is purely for informational purposes and should not be considered investment advice from Upstox. Please consult with a financial advisor before making any investment decisions.

About The Author

Abha Raverkar
Abha Raverkar is a post-graduate in economics from Christ University, Bengaluru. She has a strong interest in the markets and loves to unravel the nitty-gritties of the latest happenings in the world of markets, business, and the economy.

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