Swiggy shares tumble 7% ahead of Q2 results: Can Instamart losses, food delivery growth surprise investors?

Shares of online food delivery and quick-commerce platform Swiggy tumbled over 7% on Thursday, October 22, ahead of the company's September quarter (Q2 FY27) results, due later in the day.

The stock slipped up to 7.13% to hit its 52-week low of ₹207.70 on the NSE.

The key monitorable for investors is whether Swiggy can accelerate growth in its quick-commerce business, Instamart, without significantly widening losses.

Investors will also track the pace of improvement in profitability, trends in food-delivery growth and margins, and how the company's performance compares with rival Eternal, which operates Zomato and Blinkit.

Eternal's latest Q2 results offer a useful sector benchmark. Its food delivery net order value (NOV) rose 21.5% year-on-year, while Blinkit's NOV surged 79.3%.

Investors will compare Swiggy's growth, margins and quick-commerce execution with its larger listed rival.

What to watch out for

Food delivery growth and margins will be key monitorables.

According to news reports that quoted research reports by financial services firms, the food delivery segment’s gross order value (GOV) is likely to rise around 19% year-on-year, with its adjusted EBITDA margin improving to 3.5% of GOV from the previous quarter.

Investors will also track order growth, customer spending and whether the core business can generate enough cash to support expansion.

In quick commerce, Instamart’s net order value (NOV) is expected to grow around 37% year-on-year, but analysts expect its adjusted EBITDA loss to widen to ₹840 crore from ₹780 crore in Q1 FY27, amid expansion costs and pressure on contribution margins.

The pace of dark-store additions, sales per store and progress towards sustained profitability will therefore be crucial.

Headwinds to keep in mind

The key headwind is intensifying quick-commerce competition, which can force Swiggy to spend more on discounts, customer acquisition and store expansion, delaying profitability even as order volumes rise.

Instamart’s losses and the cash required to scale the business remain concerns.

On the positive side, improving food delivery margins, rising order volumes and better utilisation of dark stores could support operating leverage over time.

Swiggy achieved near contribution-margin breakeven in Instamart in Q1, at around -0.2%, although this does not mean the business as a whole is profitable.

Key developments

In August 2026, Swiggy received shareholders' approval to cap its aggregate foreign ownership at 49.5%, months after they rejected a similar proposal in May, paving the way for the company to qualify as an Indian-owned and controlled company (IOCC).

The shareholders approved a special resolution in this regard, Swiggy informed in a regulatory filing on Tuesday.

The Indian owned and controlled company status would allow Swiggy to directly own and sell inventory through its quick commerce brand Instamart, a move expected to improve margins and strengthen supply chain control.

Rival Blinkit, owned by Eternal, follows an inventory-led model.

Besides approving the foreign ownership cap proposal, Swiggy's shareholders also approved an alteration to the Articles of Association (AoA) to align with India's FEMA (Foreign Exchange Management Act) regulations.

Under current FEMA rules, a company can qualify as Indian-owned and controlled only if both ownership and control rest with resident Indian citizens or eligible Indian entities, including through a board composition and nomination framework that supports domestic control over the board.