Daijiworld Media Network - New Delhi

New Delhi, Oct 23: Shares of food delivery and quick-commerce major Swiggy plunged 17 per cent to hit a fresh 52-week low on Friday after the company reported a consolidated net loss of Rs 922 crore for the September quarter of FY27.

The stock fell as much as 17.22 per cent to touch an intraday and 52-week low of Rs 174.90 on the BSE by 12.40 pm. At the last count, it was trading at Rs 181, down around 14 per cent from the previous close of Rs 211.30.

The sharp decline reflected investor concerns over the company's performance in its key food delivery and quick-commerce businesses, amid intensifying competition and losses higher than market expectations.

Swiggy reported a consolidated net loss of Rs 922 crore in the second quarter of FY27, narrowing 15.6 per cent from Rs 1,092 crore in the corresponding period a year ago. However, the loss widened sequentially from Rs 791 crore in the June quarter.

Revenue from operations rose 36 per cent year-on-year to Rs 7,571 crore during the quarter.

However, the company's adjusted EBITDA loss widened to Rs 760 crore from Rs 695 crore in the year-ago period, exceeding estimates.

The principal concern for investors was Instamart, Swiggy's quick-commerce business, where losses continued to mount. Its adjusted EBITDA loss widened to Rs 895 crore from Rs 778 crore in the first quarter of FY27 and Rs 849 crore in the corresponding quarter last year.

Instamart's gross order value (GOV) grew 31 per cent year-on-year to Rs 9,230 crore, while growth in net order value (NOV) accelerated to 13.4 per cent quarter-on-quarter.

However, its contribution margin deteriorated to minus 1.4 per cent from minus 0.3 per cent in the previous quarter, as growth was driven by customer incentives and higher fixed costs.

The quarterly performance also prompted several leading global brokerages to lower their price targets for Swiggy shares.

Analysts at Goldman Sachs, HSBC, CLSA, Bernstein, JPMorgan and Citi have reduced their target prices, reflecting concerns over the company's financial performance and the outlook for its businesses.

According to Jefferies, Instamart's mounting losses remain a key concern. The brokerage also noted that Swiggy's current share price does not fully reflect the value of its food delivery business and cash holdings.