Shares of Swiggy Ltd fell as much as 5.3% in early trade on Friday, before paring losses to trade around 2.9% lower at ₹287.40 on the NSE by 11:26 am, after the company’s June-quarter earnings drew a mixed response from global and domestic brokerages.
While CLSA and JM Financial downgraded the stock citing weaker-than-expected operating performance, several other analysts retained a constructive view on the food delivery and quick commerce platform.
Q1 FY27 numbers show narrower losses, slower growth
Swiggy reported a consolidated net loss of ₹791 crore for the quarter ended June 2026, narrower than the ₹1,197 crore loss a year earlier. Revenue from operations rose 37.31% year-on-year to ₹6,812 crore, up from ₹4,961 crore in the same period last year, while the EBITDA loss narrowed to ₹650 crore from ₹954 crore.
However, growth in both core businesses fell short of Street estimates. Food delivery gross order value (GOV) grew 17.4% year-on-year, below expectations of 18–19%, while Instamart’s Net Order Value rose 38.9%, missing forecasts of 40–50% growth. Instamart did achieve contribution breakeven during the quarter, a milestone management had guided toward.
CLSA, JM Financial turn cautious
CLSA downgraded Swiggy to ‘Hold’ from ‘Accumulate’ and cut its target price to ₹318 from ₹357. The brokerage flagged that recent shifts in the company’s strategy have created uncertainty around execution, and noted that changes appeared to be confusing not just for investors but also for consumers, pointing to Play Store ratings as a signal.
JM Financial turned more bearish still, downgrading the stock to ‘Sell’ from ‘Reduce’ with a target price of ₹250.
Macquarie retained its existing ‘Underperform’ rating with a target of ₹230, pointing to flat sequential GOV at Instamart and no visible improvement in dark store throughput or monthly transacting users. The brokerage also noted that Swiggy’s food delivery growth trailed that of rival Zomato.
Broader Street view stays constructive
Despite the downgrades, the wider analyst community has largely stuck to a positive or neutral stance on the stock, with several brokerages revising target prices rather than ratings. Swiggy’s management has maintained its long-term guidance of 18–20% compound annual growth and a steady-state adjusted EBITDA margin of 5% of GOV.
The stock has gained roughly 14% over the past week and more than 19% over the past month, even as it remains down about 27% on a year-to-date basis. It had touched a 52-week high of ₹474 in September 2025 and a year’s low of ₹235.75 in June 2026.
