Swiggy Shares Plunge to 52-Week Low Following Widened Q2 Loss

Swiggy shares suffered a steep decline on Friday, falling as much as 17 percent to hit a new 52-week low of Rs 174.90 on the BSE. The sharp sell-off followed the release of the company's financial results for the second quarter of fiscal year 2027, which revealed a consolidated net loss of Rs 922 crore.

Although Swiggy reported a 36 percent year-on-year increase in revenue from operations to Rs 7,571 crore, the net loss widened sequentially from Rs 791 crore in the preceding quarter, though it narrowed compared to Rs 1,092 crore during the same period last year. The consolidated adjusted EBITDA loss also expanded to Rs 760 crore, up from Rs 651 crore in the first quarter.

The primary source of concern for investors was the performance of Instamart, Swiggy's quick-commerce arm. Instamart's absolute adjusted EBITDA loss increased to Rs 895 crore, up from Rs 778 crore in the previous quarter. The platform's contribution margin deteriorated to negative 1.4 percent, driven by increased spending on customer incentives, habit formation, and rapid expansion that included the addition of 69 dark stores during the quarter.

Despite the financial pressures, Instamart demonstrated operational growth, with net order value growing 13.4 percent sequentially to Rs 6,594 crore and total orders reaching 130.3 million. Swiggy Managing Director and Group CEO Sriharsha Majety noted that the company is prioritizing the construction of a more resilient business model rather than accelerating expansion solely because capital is available.

In contrast to the quick-commerce segment, Swiggy's food delivery business showed financial improvement. Gross order value in food delivery rose 17.7 percent year-on-year to Rs 10,054 crore, while adjusted EBITDA reached a record Rs 341 crore with margins improving to 3.4 percent of gross order value. The segment benefited from higher advertising monetization, increased order density, and shorter delivery distances.

The widening performance gap between Instamart and competitors such as Eternal's Blinkit has further weighed on market sentiment. Brokerages including Motilal Oswal, ICICI Securities, Emkay Global, and JM Financial responded to the earnings report by adjusting their target prices, with several firms expressing caution regarding execution challenges and the timeline for quick-commerce profitability.

Looking ahead, Swiggy management anticipates that Instamart's adjusted EBITDA losses peaked during the second quarter and expects sequential margin improvements in the upcoming third quarter. However, analysts maintain that a clearer path to profitability for the quick-commerce division remains essential for a recovery in investor confidence.