Swiggy shares fall 5% despite narrower Q4 loss; check analyst targets

Shares of Swiggy Ltd. are trading 5% lower on Monday, May 11, after the food-delivery platform reported a strong performance in its core food-delivery business, even as growth in its quick-commerce arm, Instamart, lagged expectations amid intense competition.

The company's food-delivery gross order value (GOV) growth came in ahead of estimates and hit a 15-quarter high, while management said its focus on profitability in quick-commerce has temporarily weighed on order-volume growth.

Swiggy said the strategy of prioritising efficiency and profitability in quick-commerce has led to a near-term slowdown in order volumes, but reiterated that it remains on track to achieve break-even at the contribution-margin level in the first quarter of FY27.

In the food-delivery segment, GOV growth stood at 22.6% year-on-year, ahead of expectations of 18-20% growth. Margins improved by 41 basis points year-on-year to 3.3% of GOV.

The company also reiterated its medium-term guidance of 18-20% annual GOV growth and maintained margin guidance of 5% of GOV.

Instamart reported net order value (NOV) growth of 60.3% year-on-year, below expectations of over 80% growth. EBITDA loss for the segment stood at ₹858 crore, within the estimated loss range of ₹800-900 crore.

Swiggy said it remains confident of scaling the quick-commerce business into a ₹1 lakh crore-plus NOV platform with 4-5% EBITDA margins over the medium term.

How brokerages reacted to Swiggy Q4

Brokerage firm Nomura maintained its 'Buy' rating on the stock with a target price of ₹473. The brokerage said Swiggy's food-delivery business continues to deliver strong growth, while moderation in quick-commerce reflects the company staying away from irrational competition.

Nomura added that the company remains well-funded to navigate competitive intensity in the quick-commerce space. However, it cautioned that prolonged competition could delay profitability beyond FY27.

Citi also retained a 'Buy' rating with a target price of ₹415. The brokerage said that Swiggy exited March 2026 with contribution margins of negative 1.1% in quick-commerce, compared to negative 1.8% in the previous quarter, and said the company remains on track to turn contribution-margin positive in the current quarter.

Citi added that competition continues to be a major headwind for quick-commerce growth, though operational metrics are steadily improving.

Morgan Stanley maintained an 'Equalweight' rating with a target price of ₹322. The brokerage highlighted marginal market-share gains in food delivery, but expects a sharp moderation in quick-commerce growth in FY27.

Kotak Mahindra Bank retained its 'Buy' call with a target price of ₹370. The brokerage said food-delivery GOV growth exceeded estimates, while Instamart's growth moderated sequentially.

Kotak also warned that weak GOV growth and elevated losses in quick-commerce may persist despite improvement in contribution margins, prompting it to cut revenue and EBITDA estimates for Instamart.

Swiggy shares ended 1.18% higher on Friday at ₹282.80. The stock has declined 28% so far this year.