Swiggy stock hits all-time low as quick-commerce losses widen

what happened

Shares of India's Swiggy hit an all-time low in Friday trading after the company reported a wider adjusted core loss at its Instamart quick-commerce unit. Reuters reported that the loss climbed to 8.95 billion rupees during the second quarter, compared with 8.49 billion rupees a year before.

The stock traded at 198.30 rupees early in the session, down 6.20%. If the slide holds, it would be the worst day in the company's trading history. Swiggy and rival Eternal have been opening small dark stores quickly, a model now under scrutiny as expansion spending and competition weigh on margins.

Jefferies kept its buy rating but lowered its target to 330 rupees from 435. The brokerage said Instamart losses are a major investor concern and that the share price does not fully capture the food-delivery business and cash holdings. Emkay also kept a buy rating and trimmed its target by 11% to 310 rupees, arguing that steady double-digit growth in Instamart order value and better customer retention could justify a higher valuation.

why it matters

The central question for investors is when quick-commerce can turn profitable without slowing growth. While the segment stays loss-making, it is likely to shape sentiment around the stock, even though the food-delivery franchise remains the core earnings base the brokers highlight.

market impact

Swiggy and Eternal: quick-commerce losses pressure share prices and valuations across the delivery sector

tags

instruments