Swiggy Shares Slump 4.2% After Q1 Results; Jefferies & Morgan Stanley See Positive Outlook

Shares of Swiggy slumped as much as 4.2% to INR 386.25 during the early trading hours on the BSE today after the company posted results for the June quarter (Q1 FY26).

At 1:20 PM, the shares pared some losses to trade 2% lower at INR 395.75, and the market capitalisation stood at INR 98,686.08 Cr (around $11.2 Bn) at this point. As many as 25 Lakh shares changed hands by then.

Swiggy’s net losses nearly doubled year on year (YoY) to INR 1,197 Cr, driven by aggressive quick commerce expansion, while the company’s operating revenue surged 54% YoY to INR 4,961 Cr.

Instamart remained Swiggy’s biggest growth engine and cash burner. Its operating revenue from the quick commerce arm jumped 115% to INR 806 Cr, while net loss almost tripled YoY to INR 797 Cr.

Instamart contributed the second-highest to consolidated revenue, after the core food delivery business clocked a 200% YoY jump to INR 1,800 Cr.

At the previous closing price, the stock was trading 34.55% below its all-time high of INR 617.00, recorded on December 23 last year. However, the company also hit its all-time low of INR 297.00 on May 30 earlier this year.

The stock has delivered a negative return of 27% to investors on a year-to-date basis, in sharp contrast to the Sensex’s positive return of 34.22% during the same period.

Jefferies, Morgan Stanley Maintain Bullish Outlook

Despite the weak results, two global brokerage firms, Jefferies and Morgan Stanley, remained optimistic about the company’s stock, citing strong growth indicators.

Jefferies upgraded Swiggy to a “Buy” rating with a target price (TP) of INR 500 per share, while Morgan Stanley maintained its “Overweight” rating with a TP of INR 450 per share.

Jefferies underscored strong growth in the food delivery business during Q1 and noted continued momentum in quick commerce. Morgan Stanley said the food delivery segment is performing in line with expectations.

“With a pause on dark store expansion in ST and easing in competition (JEF view), 1Q profitability marked the trough. Swiggy, however, remains prone to high volatility due to a low margin base; U/G to BUY (high risk-reward),” Jefferies added.

Swiggy added 41 dark stores in Q1, with the total number of stores now at 1,062 across 127 cities. Instamart’s average order value (AOV) for the company jumped 16% QoQ to INR 612 in Q1.

Jefferies further pointed out that EBITDA margin declined quarter-on-quarter, primarily due to higher rider and staff costs. Despite this, the management views Q1 as the trough for profitability, indicating improvement ahead.

Morgan Stanley has also raised its profitability assumptions for the quick commerce business and lowered loss projections based on the company’s positive commentary on Q2 performance.

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