Swiggy share price fell over 5 percent to hit the fresh low in Monday's trading session. The stock has extended its decline to over 18 percent since it declared its quarter third earnings for the current fiscal on February 5.
Shares of food and grocery delivery major Swiggy dropped 5.69 percent to hit the day's low of Rs 359 per share on the NSE. The stock has been falling for the last five trading sessions to decline 20.18 percent in the period.
The company reported widening of consolidated loss to Rs 799.08 crore for the December quarter. The company had incurred a net loss of Rs 574.38 crore in the year-ago period.
The company's market valuation diminished to Rs 82,953.79 crore. In traded volume terms, over 2.35 crore shares of the firm were traded at the NSE generating a traded value of Rs 857.20 crore till 2 PM.
Higher volatility in the stock could also be attributed to the expiry of the IPO lock-in period for the stock.
The stock had listed with a 7.69 percent premium at Rs 420 per share on the National Stock Exchange (NSE) on November 13.
On the BSE, the shares were listed at Rs 412 per share, reflecting a 5.6 percent premium over the IPO price of Rs 390.
Akriti Mehrotra, Research Analyst at StoxBox noted that although the company's food delivery segment saw stable growth with growing GOV led by initiatives like Bolt and Snacc, the losses of the company widened. This loss was attributed mainly to the Quick Commerce segment, where the company faced losses due to its extensive store expansion plans.
"Going ahead, the management is anticipating seeing more traction due to higher disposable income in the hands of people, resulting in higher spending on discretionary products. Although this may provide some positive action but with intense competition, widening losses and a struggle to maintain market share, we suggest investors wait for the company to improve its profitability," she said.
At least six brokerages lowered their price targets on Swiggy shares as Swiggy’s Instamart quick-commerce platform contributed less to earnings, given its investment in expanding dark stores, offering deeper discounts, and hiring more personnel during the seasonally strong quarter.
"Balancing profitability with expansion is even more relevant for Instamart," Elara Capital analyst Karan Taurani told Reuters.
Instamart's contribution margin—a key profitability measure—declined by 270 basis points compared to the previous quarter, while the margin for Zomato-owned rival Blinkit deteriorated by around 80 basis points.
JM Financial noted that operating losses could further expand in the fourth quarter as the company plans to accelerate dark store expansion. "These trends could significantly intensify the pressures on Swiggy’s stock price in the near term, despite valuation support due to an improved growth/margin trajectory in the food delivery business. Our revised March 2026 target price now stands at INR 500," it said.
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