Swiggy Shares Plunge 17% To Hit 52-Week Low, Brokerages Slash Target Price

Swiggy's share price plummeted over 17 per cent, hitting a 52-week low on Friday. The food delivery giant reported a significant loss in its quick-commerce business--Instamart-- for the July-September quarter of the current fiscal year Q2 FY26). The stock opened at Rs 204.95, significantly down from the previous day's close of Rs 211.40. It escalated the losing move; it declined to hit an intraday low at Rs 174.95, plunging 17.24 per cent on NSE.

Meanwhile, several brokerage firms cut the target price for Swiggy' s stock, taking note of the company's quick commerce strategy, its competitive position and profitability.

Swiggy Share Price Target: Brokerage Call 

Global and domestic brokerage houses reduced the target price for the food delivery and quick commerce company. 

HSBC Reduces Target Price: The global brokerage house reduced the target price for Swiggy to Rs 240, reducing it from the earlier target of Rs 315. However, HSBC maintained its 'hold' rating for the stock.  

CLSA Target Price: The brokerage maintained its 'Outperform' rating for the stock; however, its target price to Rs 262. The brokerage reported that Instamart's quarter-on-quarter growth improved to 13.4 per cent, but fell short of expectations, while the company's losses widened.

Nomura Target Price for Swiggy: The global brokerage firm reduced the target price for the stock to Rs 300 per share. However, it maintained its 'Buy' rating for the stock. 

Jefferies Target Price for Swiggy: Brokerage firm Jefferies maintained its 'Buy' rating on Swiggy but reduced its target price to Rs 330 per share.

Motilal Oswal: The domestic brokerage reduced its price target on Swiggy to Rs 280 from Rs 360 earlier, while maintaining a "buy" rating for it.

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How were the Q2 results?

Swiggy's consolidated net loss narrowed to Rs 922 crore for the quarter under review, as compared to Rs 1,092 crore in the same quarter a year ago. However, sequentially, the net loss widened from Rs 792 crore in the June quarter. 

Swiggy vs Entratal 

As per media reports, all brokerages flag the same concerns that Swiggy's food delivery business remains relatively resilient, but its quick commerce arm's-- Instamart-- growth is not up to expectations. Instacart's profitability remains the key concern for brokers as well. 

The slow growth against its core rival 'Eternal' emerged as a pain point among investors as well.