Swiggy shares fell 6% over two days despite reporting strong Q1 earnings, with the stock hitting a day's low of ₹277 on BSE on Monday. The latest decline reflects continued bearish sentiment despite the company's improved quarterly performance. The stock's performance comes amid recent corporate announcements including a change in Senior Management Personnel on July 28, 2026, and the company's 13th Annual General Meeting publication on July 27, 2026. Additionally, Swiggy Limited informed the exchange about its Business Responsibility and Sustainability Report for the Financial Year 2025-26 on July 24, 2026.
Food delivery and quick commerce major Swiggy Ltd reported a consolidated net loss of ₹791 crore during the April-June quarter (Q1 FY27), marking a nearly 34% year-on-year decline from the ₹1,197 crore net loss reported in the year-ago period. However, the company's revenue from operations increased more than 37% YoY to ₹6,812 crore during the April–June quarter of FY27, compared to ₹4,961 crore in the corresponding quarter of the previous financial year. At an operational level, Swiggy's EBITDA loss stood at ₹650 crore, reflecting a 31.87% YoY fall from ₹954 crore in the year-ago period. The company's adjusted EBITDA margin declined 20 basis points to 3.1%, mainly due to seasonal investments in rider availability and annual salary hikes. Total expenses increased to ₹7,813 crore in the June quarter from ₹6,244 crore in the corresponding period of the previous financial year, mainly due to higher advertising and sales promotion expenses, delivery-related charges and other costs.
The company's food delivery segment showed strong operational improvements with Food Delivery gross order value (GOV) growing 17.4% YoY to ₹9,490 crore, while adjusted EBITDA improved by ₹100 crore YoY to ₹292 crore. Monthly transacting users rose 17.8% YoY to 19.2 million, demonstrating sustained customer engagement. Management noted that temporary LPG supply disruptions at restaurants led to higher order cancellations early in the quarter, but excluding these disruptions, Food Delivery GOV growth would have been around 18% YoY. The company reiterated its 18-20% Food Delivery GOV growth guidance (excluding Toing), citing continued traction from affordability initiatives. Finance costs increased to ₹53 crore from ₹41 crore a year ago, while depreciation and amortisation expense rose to ₹298 crore from ₹288 crore.
The company's quick commerce arm Instamart showed significant improvement with losses narrowing to ₹651 crore in Q1 FY27 from ₹797 crore in the year-ago period. Instamart's revenue from operations surged nearly 53% YoY to ₹1,232 crore, while Gross Order Value (GOV) rose nearly 40% YoY to ₹7,907 crore. Most notably, Instamart's contribution margin improved by 440 basis points to 0.2%, indicating progress toward profitability. The segment's monthly transacting users rose 4.9% QoQ to 19.2 million, demonstrating growing customer engagement despite ongoing competitive pressures in the quick commerce space. Swiggy added 28 net dark stores during the quarter, taking the total to 1,171 stores across 131 cities, and expects to add around 75 more stores in Q2 FY27 to redistribute load for super mature polygons.
During the quarter, Swiggy's board approved a proposal to cap aggregate foreign shareholding at 49.5%, subject to shareholder approval, as part of its plan to qualify as an Indian Owned and Controlled Company (IOCC). The company said IOCC status would enable Instamart to directly own and sell inventory, potentially improving contribution margins by about 80 basis points over time. The out-of-home consumption GOV grew 44.8% YoY, while adjusted EBITDA margin improved to 0.9% of GOV. Budget food delivery platform Toing expanded to 50 cities, with two out of every three new users being new to the platform, contributing to overall monthly transacting users across the platform increasing 27.4% YoY to 27.5 million. As per Sriharsha Majety, founder and group CEO of Swiggy, the company prioritised improving unit economics over fleeting headline growth, stating that efforts to reset user base, economics and experience have made the business stronger.
Despite the mixed quarterly performance, brokerages offered mixed recommendations with some maintaining positive ratings while others turned more cautious. Nuvama maintained its Buy rating on Swiggy with a target price of ₹444, highlighting that management follows a conservative accounting approach with no capitalization of employee costs or new-store ramp-up expenses. The brokerage noted that quarterly margins were impacted by seasonal cost pressures, including annual salary revisions, minimum wage hikes for dark store operations and higher delivery partner costs. Motilal continues to see long-term value in Swiggy's food delivery franchise and brand, although it believes a clear path to quick commerce EBITDA profitability will be key for a meaningful re-rating. However, JM Financial turned more cautious, downgrading the stock to Sell from Reduce with a target price of ₹250 per share*, forecasting over 15% downside from current market levels. JM Financial said Swiggy's Q1FY27 results reinforce its view that meaningful profitability improvement in the Instamart business will require greater scale, with the brokerage noting that after prioritising contribution margins, the company has shifted its focus back to accelerating growth.
