# Swiggy Slumps to 52-Week Low After Quick Commerce Losses Widen; ICICI Securities Retains Buy with Rs 400 Target

> Swiggy shares dropped 16% to Rs 176 after rising sequential losses at Instamart offset strong food delivery margins, though brokerage ICICI Securities maintains an optimistic upside.

**Type:** article · **Category:** Money · **Published:** 2026-10-24 · **Source:** TrendKia
**Canonical:** https://trendkia.com/en/money/swiggy-ke-sheyaron-men-bhari-giravata-ke-bada-icici-securities-ne-di-kharidari-ki-salaha-lakshya-400-rupaye-taya-51392 · **Language:** English
**Tags:** Swiggy Shares, Instamart, ICICI Securities, Stock Market, Quick Commerce, Quarterly Earnings

Friday turned out to be an exceptionally difficult trading session for Swiggy on Dalal Street as sustained selling pushed the company down sharply. Following the release of its financial results for the second quarter of the fiscal year 2026-27, market participants reacted negatively to signs of widening losses at quick commerce branch Instamart. During trading hours, the counter dropped as much as 17.23 percent on the Bombay Stock Exchange to establish a 52-week low of Rs 174.90. The stock eventually finished at Rs 176, down roughly 16 percent from the prior close of Rs 211.40. Selling pressure had already set in during Thursday's trade, when the equity shed more than 5 percent ahead of the earnings release.

## Topline Revenue Expands While Sequential Profitability Deteriorates
A closer look at headline figures shows healthy top-line expansion that stands in contrast to the harsh market reaction. Operational revenue jumped 36.1 percent year-on-year to reach Rs 7,571 crore during the quarter. Consolidated net loss also showed improvement on an annual basis, contracting to Rs 922 crore compared to a loss of Rs 1,092 crore posted in the same period of the previous financial year. However, quarter-on-quarter momentum raised caution among equity desks.

Sequentially, net losses deteriorated from Rs 791 crore reported in the opening quarter of FY27 to Rs 922 crore in Q2. Adjusted EBITDA loss deepened as well, climbing to approximately Rs 760 crore against roughly Rs 650 crore recorded three months earlier. This resulted in an adjusted EBITDA margin slide from negative 9.2 percent to negative 9.6 percent. It was this negative operational drift between consecutive quarters that triggered aggressive market selling.

## Instamart Network Broadens Amid Elevated Customer Acquisition Expenses
Operating performance across quick commerce showed solid user participation coupled with challenging unit economics. Instamart saw gross order value advance 31.4 percent on an annual basis to touch Rs 9,230 crore, supported by monthly transacting consumers growing to 14.8 million. Network infrastructure expanded aggressively with the addition of 69 fulfillment dark stores during the three-month period, taking its geographic footprint to 1,240 facilities spread across 133 urban centers.

Despite physical scale gains, the financial drag intensified. Instamart reported an adjusted EBITDA loss of roughly Rs 900 crore, deteriorating from a deficit of Rs 780 crore in the preceding quarter. The vertical contribution margin shifted further into negative territory, declining to negative 1 percent of gross order value compared to negative 0.2 percent previously. Management attributed the margin erosion to promotional spending directed at reactivating dormant users alongside an unfavorable basket mix. Taking note of these operational hurdles, several brokerages moved swiftly to lower valuation multiples on account of persistent losses and moderating momentum.

## Food Delivery Segment Demonstrates Solid Margins and Order Stability
Providing essential balance to the broader portfolio, the core food delivery operations delivered reliable financial progress and margin expansion. Gross order value for restaurant delivery climbed 17.7 percent year-on-year to reach Rs 10,050 crore. Operational execution improved, pushing the adjusted EBITDA margin up to 3.4 percent of gross order value compared with 3.1 percent logged during the prior quarter. Transacting user density expanded by 15.1 percent on an annual basis to touch 19.8 million active accounts.

Several factors underpinned this margin enhancement, including increased digital advertising receipts, superior route logistics, and rapid adoption of value-driven offerings like Bolt and 99-Store. Together, these two newer delivery options now generate more than 25 percent of aggregate food delivery order volumes. Meanwhile, the budget-focused platform Toing has broadened its reach to over 50 municipal markets. Looking forward, executive management reconfirmed full-year FY27 growth guidance of 18 to 20 percent for core restaurant delivery, excluding contributions from the Toing platform.

## ICICI Securities Reasserts Optimistic Buy Stance With Revised Estimates
Even as the market witnessed heavy liquidation, research analysts at ICICI Securities kept a constructive perspective on the long-term investment profile. In a comprehensive review dated October 23, the brokerage reiterated its Buy recommendation on the equity. It chose, however, to recalibrate its valuation baseline, bringing the target price down to Rs 400 from an earlier projection of Rs 520. When evaluated against the Friday settlement level of Rs 176, this revised objective presents an upside potential of approximately 127 percent. The published note had referenced an prevailing quotation of Rs 211, which indicated an upside of roughly 90 percent.

Explaining the lower target, the brokerage highlighted a 100-basis-point increase in its underlying cost of capital framework and an adjustment toward a fully diluted equity base that factors in unvested shares assigned to the employee trust. Operational earnings expectations were also reset substantially downward. For FY27, the research team now anticipates a consolidated EBITDA loss of Rs 2,253 crore, widening sharply from an earlier estimate of Rs 1,097 crore. For FY28, projected EBITDA stands curtailed at Rs 301 crore, compared with Rs 1,376 crore modeled previously. Operational revenue projections for FY27 and FY28 experienced cuts of 2.8 percent and 4 percent, now placed at Rs 30,222 crore and Rs 38,678 crore respectively.

## What this means for you
The steep fall in Swiggy shares affects public market investors holding the equity, while highlighting dynamic operational spending across quick commerce and food delivery services.

- **For Equity Investors:** The share price tumbled 16 percent to hit a 52-week low of Rs 176 on the BSE. Market participants holding the stock must balance near-term volatility against ICICI Securities' projected Rs 400 upside target.
- **For Quick Commerce Shoppers:** Instamart has expanded its presence to 1,240 dark stores across 133 cities to maintain delivery density. Continued spending on customer reactivation indicates that promotional discounts and regional product availability will remain competitive.
- **For Food Delivery Users:** Swiggy expanded its value-focused Toing app to over 50 cities while Bolt and 99-Store now make up more than a quarter of volumes. Consumers can expect sustained availability of low-ticket meal options and faster fulfillment.
- **For Market Watchers:** Broadening losses in quick commerce are driving revisions across brokerages regarding path-to-profitability expectations. Investors will closely observe whether contribution margins recover from negative 1 percent in upcoming quarters.

## Why this happened
The sharp sell-off in Swiggy stock was primarily driven by sequential loss expansion and deteriorating profit metrics in quick commerce despite headline revenue growth.

- **Sequential Loss Escalation:** Consolidated net loss widened from Rs 791 crore in Q1 FY27 to Rs 922 crore in Q2 FY27. Similarly, overall adjusted EBITDA loss climbed from around Rs 650 crore to nearly Rs 760 crore quarter-on-quarter.
- **Instamart Contribution Margin Erosion:** Adjusted EBITDA losses at Instamart rose to roughly Rs 900 crore from Rs 780 crore in the preceding quarter. Elevated customer reactivation spending and an adverse order mix pulled the contribution margin down from negative 0.2 percent to negative 1 percent.
- **Brokerage Valuation Revisions:** Multiple analytical firms trimmed target valuations due to expanding quick commerce deficits. ICICI Securities reduced its target to Rs 400 citing a 100-basis-point rise in cost of capital and adjustments for unvested employee trust equity.

## Questions & Answers

### 1. At what price did Swiggy shares close on Friday?
Swiggy shares closed at Rs 176, down roughly 16 percent after hitting a 52-week low of Rs 174.90 during the trading session.

### 2. What was Swiggy's operational revenue in Q2 FY27?
Revenue from operations rose 36.1 percent year-on-year to reach Rs 7,571 crore during the second quarter.

### 3. How did Instamart's operating losses perform in the quarter?
Instamart's adjusted EBITDA loss widened to roughly Rs 900 crore compared to Rs 780 crore recorded in the first quarter of FY27.

### 4. What is ICICI Securities' current recommendation and target price for Swiggy?
ICICI Securities maintained a Buy rating on Swiggy while reducing its target price from Rs 520 to Rs 400.

### 5. How did the food delivery division perform during Q2 FY27?
Food delivery gross order value rose 17.7 percent year-on-year to Rs 10,050 crore, with adjusted EBITDA margin improving to 3.4 percent.

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