Bengaluru: Shares of Swiggy came under heavy selling pressure after the food delivery and quick-commerce company announced its second-quarter results for the 2026–27 financial year. The stock declined sharply as investors focused on rising losses at its Instamart quick-commerce business, despite a strong increase in revenue and a narrower net loss compared with the same quarter last year.
Swiggy reported a consolidated net loss of ₹922 crore for the quarter ended September 30, 2026, down 15.6% from ₹1,092 crore in the corresponding quarter of the previous financial year. Revenue from operations increased 36% year-on-year to ₹7,571 crore.
However, the company’s losses widened sequentially from ₹791 crore in the June quarter. The market reaction reflects concerns that Swiggy’s expansion in quick commerce could continue to weigh on profitability, even as its core food delivery business improves.
The stock also faces competitive pressure from Eternal, the parent company of Zomato and Blinkit, which reported strong revenue growth and a sharp rise in quarterly profit. Investors are closely comparing the two companies’ growth, market position and progress towards sustainable profitability.
Why did Swiggy shares fall?
The principal concern is the performance of Instamart, Swiggy’s quick-commerce business. The company is investing in customer acquisition, competitive pricing, product availability and warehouse infrastructure to expand its presence in the rapidly growing market.
Instamart’s adjusted core loss widened to ₹895 crore in the September quarter, compared with ₹849 crore in the year-ago period. This indicates that the business continues to face pressure as it competes for customers and market share.
The expansion strategy requires substantial spending, including investments in dark stores, delivery operations and customer incentives. While these investments may support future growth, they can also delay the achievement of consistent profitability.
Competition is another important factor. Blinkit has expanded its dark-store network at a faster pace, increasing the pressure on Swiggy to strengthen Instamart’s reach and improve its operating efficiency.
Swiggy added 69 dark stores during the September quarter, taking Instamart’s total network to 1,240. By comparison, Blinkit added 308 stores, taking its network to 2,751. The difference in scale is a key factor investors are watching as both businesses compete for a larger share of India’s quick-commerce market.
Revenue grows, but profitability remains uneven
Swiggy’s quarterly performance was not entirely negative. Revenue from operations rose to ₹7,571 crore from ₹5,561 crore a year earlier, demonstrating continued growth in its food delivery and quick-commerce operations.
The company’s consolidated net loss narrowed on a year-on-year basis, but increased compared with the preceding quarter. Total expenses rose nearly 30% year-on-year to ₹8,703 crore, reflecting the costs associated with scaling the business.
The food delivery division provided a more encouraging picture. Its adjusted core profit increased to ₹341 crore, supported by operating efficiencies and advertising revenue. The segment’s performance suggests that Swiggy is making progress in improving the economics of its established food delivery business.
Instamart, however, remains a significant drag on consolidated profitability. Its net order value rose 34.8% year-on-year to ₹6,594 crore, but growth has come alongside higher adjusted losses.
The central challenge for Swiggy is therefore to maintain strong order growth while improving margins. Investors will want to see evidence that the company can convert its expanding customer base and order volumes into sustainable earnings rather than relying on continued investment to defend market share.
What are brokerages saying about Swiggy shares?
Brokerage opinions remain divided between the company’s long-term growth opportunity and the near-term risks associated with Instamart.
Jefferies retained its Buy rating but reduced its target price from ₹435 to ₹330 following the latest results. Emkay also maintained a Buy rating while cutting its target price from ₹348 to ₹310.
The reductions indicate that the brokerages continue to see potential in Swiggy but have become more cautious about the time and investment required to improve profitability. Their assessments highlight the importance of Instamart’s order growth, customer retention, store utilisation and contribution margins.
A positive view on the stock does not necessarily mean that a near-term recovery is assured. Target prices are estimates based on assumptions about future performance and can change as business conditions evolve. Investors should also distinguish between brokerage recommendations and guarantees of future returns.
Should investors buy, sell or hold Swiggy?
The decision depends on an investor’s risk appetite, investment horizon and existing exposure to the stock. The latest results provide reasons for both optimism and caution.
The case for buying: Swiggy operates in India’s expanding online food delivery and quick-commerce markets. Revenue growth remains strong, and the food delivery business is generating higher adjusted core profits. If Instamart improves store productivity and reduces losses, the company could see a meaningful improvement in consolidated profitability over time.
The case for caution: Instamart’s losses have widened, competition remains intense and the company continues to spend heavily to grow. If these investments fail to deliver better margins, profitability could take longer to improve. A steep fall in the share price alone does not establish that the stock is undervalued.
What existing shareholders should watch: Investors holding Swiggy shares may want to track quarterly changes in Instamart’s losses, order growth, dark-store productivity and the food delivery business’s profitability. These indicators can help determine whether the company is moving towards a more sustainable financial model.
Rather than treating a sharp price decline as an automatic buying opportunity, investors should assess the company’s valuation against realistic earnings expectations and their ability to tolerate further volatility.
Outlook: Instamart remains the key variable
Swiggy’s next phase will depend heavily on its ability to balance growth with financial discipline. Its food delivery business has demonstrated progress, but Instamart must improve its economics without losing competitiveness in a market where rivals are expanding aggressively.
Management expects sequential improvement in Instamart’s margin in the December quarter. Whether that improvement materialises, and whether it can be sustained alongside order growth, will be important indicators for investors.
For now, Swiggy remains a growth-oriented business with substantial opportunities but meaningful execution risks. Its latest results underline why revenue expansion alone is insufficient to satisfy the market: investors also want a clearer path to sustainable profitability.