Why is Swiggy’s share price falling?
The stock price plunged after the company reported a 12% increase in statutory losses. While revenue slightly exceeded expectations, analysts lowered their average price target due to concerns over growing losses.
What happened
- Earlier
Swiggy released its second-quarter results for the 2026-27 fiscal year [1].
- Earlier
Shares fell 25% in the week following the earnings report, closing at ₹176 [2].
What you need to know
Statutory losses rose to ₹3.45 per share [2].
Quarterly revenue reached ₹75.71 billion, beating expectations by 2.9% [2].
Analysts lowered the average price target by 15% to ₹308 [2].
The company is using private labels to try and improve Instamart's performance [1].
It is not confirmed why there is such a wide gap between the most bullish analyst (₹460) and the most bearish (₹200) [2].
Background
Swiggy operates in the competitive quick-commerce and food delivery sector in India. It is currently competing with Eternal, which takes a different strategic approach by avoiding private labels at Blinkit [1]. Analysts expect Swiggy's revenue growth to slow to 31% annually by 2027, down from a previous rate of 42%, though this remains higher than the general industry average of 19% [2].
Questions people ask
What was the impact on the share price?
The stock price dropped 25% in a single week, ending at ₹176 [2].
What are analysts predicting for 2027?
Consensus forecasts suggest revenues of ₹307.9 billion and losses narrowing to ₹12.95 per share [2].
Where this came from
Found through Google Trends and drafted with AI from at least two cited sources. Published automatically after passing our automated checks for sources, wording and safety. It may not have been reviewed by a person yet. Report a correction.