Swiggy crashes 7% after Q4 results; here's what brokerages say on the stock

Swiggy Share Price Today: Shares of Swiggy plunged 7 per cent to hit an intraday low of Rs 261 on the BSE on Monday after the food delivery and quick commerce major reported a consolidated net loss of Rs 800 crore for the fourth quarter of FY26.

Although the company managed to narrow its losses from Rs 1,081 crore reported in the corresponding quarter last year, investors remained cautious over continued cash burn and intense competition in the quick commerce segment.

The Bengaluru-based company had announced its quarterly earnings after market hours on Friday.

Revenue jumps 45 per cent in Q4FY26

Swiggy reported a strong operational performance during the January-March quarter, with revenue from operations rising 45 per cent year-on-year to Rs 6,383 crore.

Its core food delivery business delivered its strongest growth in the last 15 quarters, with gross order value (GOV) increasing 23 per cent year-on-year to Rs 9,005 crore. Monthly transacting users in the segment rose 21 per cent to 18.3 million.

Adjusted EBITDA for the food delivery business grew 40 per cent to Rs 297 crore, while adjusted EBITDA margin improved to 3.3 per cent of GOV, expanding 41 basis points year-on-year and 26 basis points sequentially.

Instamart continues rapid expansion

Swiggy’s quick commerce arm Instamart also posted robust growth during the quarter. Gross order value surged 68.8 per cent year-on-year to Rs 7,881 crore.

The company added seven dark stores during Q4FY26, taking the total network to 1,143 stores spread across 129 cities, covering 4.8 million square feet.

Average order value increased 32.8 per cent year-on-year to Rs 700, supported by a growing non-grocery mix and larger basket sizes.
Commenting on the outlook for quick commerce, Swiggy MD and Group CEO Sriharsha Majety said the next phase of growth would be driven by anticipating consumer demand rather than merely fulfilling orders.

He added that unit economics continue to improve every quarter and the company remains on track to achieve contribution margin breakeven in line with its guidance.

Brokerages remain divided on outlook

Despite the sharp fall in the stock, several brokerages maintained positive ratings on Swiggy, although many cut their target prices amid rising competition in the quick commerce space.

Jefferies retained its “Buy” rating on the stock but lowered the target price to Rs 415 from Rs 440.

Morgan Stanley maintained an “Equalweight” rating and marginally raised the target price to Rs 322 from Rs 319. The brokerage highlighted slight market share gains in food delivery and said quick commerce growth in FY27 could slow sharply.

According to Morgan Stanley, management continues to guide for contribution margin breakeven in the quick commerce business in the current quarter, although the brokerage expects this milestone to be achieved in Q2FY27.

Nomura, Citi stay bullish despite risks

Nomura Holdings maintained a “Buy” rating while cutting its target price to Rs 473 from Rs 545. The brokerage said Swiggy’s food delivery business continues to show strong momentum, while moderation in quick commerce growth reflects a disciplined approach amid irrational competition.

Nomura also noted that Swiggy remains well-funded to withstand competitive pressures, though persistent intensity in the quick commerce market remains a key risk.

Meanwhile, Citigroup retained its “Buy” rating and reduced the target price to Rs 415 from Rs 450. Citi said Swiggy’s contribution margins in quick commerce improved steadily and are on track to turn positive in the current quarter.

The brokerage added that while competition remains a major challenge, improving metrics in both food delivery and quick commerce businesses suggest long-term potential remains intact.

Competition pressures continue

Analysts believe Swiggy’s near-term performance will largely depend on how quickly it can improve profitability in the quick commerce segment amid aggressive competition from rivals.

While the company’s food delivery business continues to strengthen, investors remain focused on cash flow trends, contribution margins and the pace at which Instamart can achieve sustainable profitability.