Swiggy shares: Rs 10,000 cr mcap gone as stock tanks 17% to new low; target prices

Adding to the pain of investors, Swiggy shares have wiped out more than 55 per cent of investors' wealth from its IPO price at 393. Swiggy was listed in November 2024, when the company raised a total of Rs 11,327 from investors, at a valuation of Rs 1.02 lakh crore. The company has wiped out nearly Rs 55,000 crore from investors' wealth.

Swiggy Q2 results
Swiggy: The quick commerce and food delivery player's net loss narrowed to Rs 922 crore, while revenue increased 36.1 per cent YoY to Rs 7,571 crore for the September 2026 quarter. Quick commerce revenue increased 33.3 per cent YoY to Rs 1,306 crore, while food delivery revenue was up 21.6 per cent YoY to Rs 2,338 crore for the reported quarter.

What is leading to Swiggy's Pain?
The widening net losses, particularly from the quick commerce space is adding to the pain for Swiggy. Market participants are questioning its performance metrics, compared to the arch rival Eternal. The profitability of the Instamart business continues to remain the biggest concern for Swiggy.

Swiggy target prices & ratings
JM Financial Ltd attributed three-fourth of annualised PI losses to Toing, effectively diluting the profits of the combined FD business. This change in effect drove down the target price to Rs 200 as it kept the combined FD multiple unchanged at 35 times, while continuing to assign zero value to Instamart or the cash balance. "We strongly believe Swiggy would have to discontinue Toing," it said.

Food delivery segment is at record profitability and Instamart growth sharply re-accelerated but 2QFY27 confirms Swiggy is now firmly in Instamart's pivot-to-growth phase, where quick-commerce contribution margin and consolidated losses move backwards in the near-term by design, said Nirmal Bang Institutional Equities.

We trim FY27E/FY28E EBITDA, pushing out the consolidated loss glide-path. The quick-commerce reset is deliberate and quality led, and the IOCC-enabled 1P inventory transition starting mid-3Q over 2-3 quarters should add a 80bps contribution-margin lever. We retain our BUY rating with a reduced target price of Rs 340," it added.

Instamart added 69 stores in Q2FY27, as management focused on improving quality of services in dense urban clusters. QC’s NOV grew 13.4 per cent QoQ, driven by addition of 1.3mn MTUs, targeted pricing investments to reactivate dormant users, differentiated assortment, and network expansion, said ICICI Securities.

"QC may deliver sequential EBITDA margin gains in H2FY27 with the reversal of discounts through the next few quarters and as IOCC is implemented in Q3FY27. Food delivery s margin expansion remains a key positive for Swiggy. This could extend into H2 with NOV growth accelerating. We lower our target price to Rs 400 with a 100bps rise in WACC and the move to a fully diluted share count," it said.

While brokerage firms like Ambit, Macquarie and HSBC have a target price of Rs 220-240 on Swiggy, Others like Nuvama, UBS and Bernstien has a target price of Rs 350-403 on the stock suggesting a 100-130 per cent upside potential in the stock from its Friday's low.