Swiggy falls 6% as Instamart reports wider sequential losses in Q3, CLSA downgrades stock

Swiggy shares see profit booking in trade. 

• Swiggy shares fell nearly 8 percent after Instamart reported wider losses in Q3.
• CLSA downgraded Swiggy to Hold, citing missed revenue and Ebitda estimates.
• Swiggy confirmed breakeven guidance despite quick commerce profitability issues.

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Swiggy shares fell nearly 8 percent on Friday after its quick commerce arm Instamart reported wider sequential losses in the December quarter, while global brokerage CLSA downgraded the stock.

Shares of Swiggy declined 7.78 percent to an intraday low of Rs 302.15 apiece on the NSE. The stock opened gap-down, slipping 5.69 percent in early trade, and extended losses thereafter. The decline came after three consecutive sessions of gains.

Brokerage reactions to the quarterly performance were mixed. CLSA downgraded Swiggy to ‘Hold’ and cut its price target to Rs 335 after the company missed its revenue and Ebitda estimates for the third quarter.

The brokerage said that while the food delivery business reported better growth in gross order value and revenues, with Ebitda broadly in line, the quick commerce segment disappointed across key metrics, reflecting slower growth and weaker profitability.

Swiggy Q3 FY26: Strong growth, profitability still a challenge

CLSA added that although the company has maintained its guidance for contribution breakeven, the path to achieving it now appears steeper.

Ebitda losses at Instamart, the company’s quick commerce unit and its largest revenue generator, widened sequentially during the quarter, even as contribution and Ebitda margins showed some improvement.

At the consolidated level, Swiggy reported a narrower sequential loss and reaffirmed its outlook for contribution margin breakeven by the first quarter of FY27.

Jefferies said there remain several unanswered questions around the profitability trajectory of the quick commerce business and raised its estimates for Instamart’s losses going forward.

Elara Capital described the third-quarter performance as a “mixed bag” but said it expects a sharper focus on profitability in the quick commerce segment, as management reiterated its contribution margin breakeven guidance.

The stock is down 20.5 percent so far this year.

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