Swiggy Shares Plunge 17% to 52-Week Low After Q2 Results

The stock fell as much as 17.22 per cent to an intraday low of ₹174.90 on the BSE by 12:40 p.m. It was last trading at around ₹181, down approximately 14 per cent from its previous close of ₹211.30.

The sell-off followed concerns over the company's profitability, particularly in its quick-commerce business Instamart, amid intensifying competition and rising operating costs.

Swiggy reported a consolidated net loss of ₹922 crore for the July–September quarter, narrowing 15.6 per cent from ₹1,092 crore in the corresponding period last year. However, the loss widened from ₹791 crore in the June quarter.

Revenue from operations rose 36 per cent year-on-year to ₹7,571 crore. Despite the revenue growth, the company's adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) loss widened to ₹760 crore from ₹695 crore a year earlier, exceeding market expectations.

Instamart remained a key concern for investors. The quick-commerce business reported an adjusted EBITDA loss of ₹895 crore, compared with ₹778 crore in the preceding quarter and ₹849 crore in the year-ago period.

Instamart's gross order value (GOV) increased 31 per cent year-on-year to ₹9,230 crore, while net order value (NOV) growth accelerated to 13.4 per cent quarter-on-quarter. However, its contribution margin deteriorated to minus 1.4 per cent from minus 0.3 per cent in the June quarter.

The decline in contribution margin reflected the pressure from customer incentives and higher fixed costs as the company pursued growth, according to the reported results.

The earnings announcement also prompted several major brokerages, including Goldman Sachs, HSBC, CLSA, Bernstein, JPMorgan and Citi, to lower their price targets for Swiggy.

Brokerage Jefferies highlighted continued losses at Instamart as a key concern, arguing that the company's prevailing share price did not adequately reflect the value of its food delivery business and cash holdings.

The sharp fall in the stock underscores investor concerns about Swiggy's ability to balance expansion in quick commerce with improving profitability, even as its overall revenue continues to grow.