Swiggy shares crashed over 5% in intraday deals on the BSE on Friday, 31 July, a day after the company reported its June quarter (Q1FY27) results.
Swiggy share price opened at ₹292.25 against its previous close of ₹295.80 and crashed as much as 5.34% to hit an intraday low of ₹280. The stock pared some losses as around 11:50 AM, it was 3.33% down at ₹285.95.
Swiggy Q1 results
Swiggy’s consolidated net loss narrowed to ₹791 crore in Q1FY27 compared with ₹1,197 crore in the year-ago period. However, on a sequential basis, the net loss also rose from ₹800 crore in the March quarter.
Its consolidated revenue from operations surged 37% year-on-year (YoY) to ₹6,812 crore.
Swiggy’s food delivery business reported a 17.4% YoY increase in GOV to ₹9,490 crore.
Is Swiggy a stock to buy?
Brokerages have mixed views on the stock after the Q1 results.
Brokerage firm ICICI Securities, while maintaining a buy call on the stock with a target price of ₹520, pointed out that in Q1FY27, Instamart reached contribution breakeven, with more than 45% of dark stores turning contribution-positive versus 30% in Q4FY26. The momentum has carried into Q2, starting strong.
“The management on the call was more confident about growth prospects given early trends of July 2026 and guided for adding nearly 75 stores in existing cities in Q2FY27.
This is aimed at redistributing the load for super mature polygons ( more than 2,500 orders/day) to improve customer experience and gain high-value customers,” ICICI Securities noted.
“Potential gains from unlisted competitors in a tougher fund-raising environment are likely, in our view. Investors have taken the recent management change at Instamart positively, given the stellar execution record of Nandita Sinha. We think there are multiple rerating triggers for Swiggy hereon,” ICICI Securities said.
On the other hand, brokerage firm JM Financial has downgraded the stock to a “sell” from a “reduce” earlier, with a target price of ₹250.
JM Financial said Swiggy’s Q1FY27 results reinforce its view that meaningful profitability improvement in the Instamart business cannot be achieved without sufficient scale.
“Having prioritised contribution margin (CM) over the past few quarters, it has now pivoted back towards accelerating growth. In fact, CM was barely break-even in Q1 despite muted NOV growth on a QoQ basis and is likely to remain in negative territory (between 0 and -100bps) over the next two quarters,” said JM Financial.
“As a result, losses too are likely to remain elevated at ₹750 to ₹800 crore over the near term, implying any meaningful turnaround remains distant,” JM Financial said.
JM Financial highlighted that the food delivery (FD) business also saw sequential growth moderation, with GOV growth of 17% in Q1 versus 23% and 21% in Q4FY26 and Q3FY26, respectively.
“One-third of the recently launched Toing (reported in platform innovations – PI segment) users overlap with Swiggy’s core FD user base, raising concerns around cannibalisation and cost attribution. This is worrying given that PI segment losses grew nearly 2.25 times QoQ to ₹131 crore. Consequently, the investment case is becoming increasingly difficult to back as frequent strategic pivots in core segments remain unexplained,” JM Financial said.
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Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
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