Swiggy Q2 Results FY27, Shares of food delivery and quick-commerce company Swiggy witnessed a sharp decline on Friday, October 23, 2026. Following the release of the company’s results for the September quarter (Q2 FY27), the stock fell by nearly 15% during intraday trading. At one point, the share price even touched a new 52-week low. Surprisingly, this occurred despite the company’s revenue showing strong growth compared to the previous year, and its net loss narrowing on an annual basis. Nevertheless, investors opted to sell the stock.
The primary reasons for this are the mounting losses in the company’s quick-commerce business, Instamart, the pressure of rising expenses, and the time required to reach profitability. According to reports from Reuters and Moneycontrol, investors are concerned not only about revenue growth but also about the company’s potential to generate profit in the future.
Swiggy Q2 FY27 Results
Swiggy recorded a significant increase in revenue for the quarter from July to September 2026. However, the company remains in the red.
| Financial data | Q2 FY27 | Q2 FY26 |
|---|---|---|
| Revenue from Operations | ₹7,571 crore | ₹5,561 crore |
| Net loss | ₹922 crore | ₹1,092 crore |
| Total expenditure | ₹8,703 crore | ₹6,711 crore |
The company’s revenue grew by approximately 36% on an annual basis. Meanwhile, its net loss narrowed from ₹1,092 crore to ₹922 crore, indicating an improvement in the loss compared to the previous year.However, in the preceding quarter (ending June 2026), the company’s loss stood at approximately ₹791 crore. Consequently, the loss has increased again on a quarter-on-quarter basis. This discrepancy has become a cause for concern among investors.
5 major reasons for the decline in Swiggy’s shares
1. Rising Losses at Instamart
Swiggy’s quick-commerce platform, Instamart, delivers groceries and daily essentials to customers in a short timeframe. To achieve rapid growth in this sector, the company incurs significant expenditure on dark stores, delivery networks, and operations.
According to a report by Business Standard, Instamart’s adjusted EBITDA loss for the September quarter stood at approximately ₹895 crore. This indicates that, despite an increase in sales, achieving profitability remains a major challenge for this business.
2. Stiff competition from Blinkit and Zepto
In the quick-commerce market, Swiggy faces competition from companies like Blinkit and Zepto. These firms are vying to offer customers better pricing, faster delivery, and a wider range of options.
If Swiggy is forced to offer deeper discounts or incur additional operational expenses to maintain its market share, its margins could come under pressure. Investors want to see whether the company can improve both its growth and its profitability amidst increasing competition.
3. Revenue increased, but expenses also rose sharply.
The company’s revenue increased to ₹7,571 crore from ₹5,561 crore in the corresponding quarter of the previous year. However, total expenses also rose, reaching ₹8,703 crore, up from ₹6,711 crore. This indicates that while the scale of the business is growing, it remains essential to keep expenses under control. In the stock market, investors do not look solely at sales growth; they also examine how much profit the company is generating from those sales.
4. Loss increased compared to the previous quarter
Swiggy’s net loss stood at ₹1,092 crore in Q2 FY26, which narrowed to ₹922 crore in Q2 FY27—an improvement on a year-on-year basis. However, in the previous quarter (Q1 FY27), the company’s net loss was approximately ₹791 crore. The increase in losses during the September quarter has raised concerns that the path to profitability remains challenging for the company. The stock market often reacts based on future prospects; consequently, the share price declined despite the year-on-year improvement.
5. Brokerage firms lower target prices
According to reports from Moneycontrol and The Economic Times, several brokerage firms have reduced their share price targets for Swiggy following the company’s latest financial results.
The primary reasons for this are concerns regarding losses at Instamart, competitive pressures, and the time required for the business to reach profitability. While some brokerages have maintained a positive rating, they have lowered their target prices.
It is important to note that a brokerage’s target price is merely an estimate and carries no guarantees.
Good News for Swiggy’s Food Delivery Business
Not all of Swiggy’s businesses performed poorly in the September 2026 quarter. The company’s core food delivery business showed improvement.
According to Business Standard, Swiggy’s food delivery Gross Order Value (GOV) increased by 17.7% year-on-year to ₹10,054 crore. The segment’s adjusted EBITDA also rose to ₹341 crore.
This is a positive sign for the company. It shows that Swiggy’s food delivery business is helping improve its operating performance. However, losses from Instamart and other business operations continue to put pressure on the company’s overall financial performance.
Can Swiggy Share Price Recover?
Whether Swiggy’s share price can recover depends on several factors. The most important ones are how quickly the company can reduce Instamart’s losses, control its expenses, and move towards sustainable profitability.
Investors should watch these five factors in the coming quarters:
- Instamart losses: Whether the company can reduce its adjusted EBITDA losses.
- Food delivery margins: Whether profit margins in the core food delivery business continue to improve.
- Revenue and expenses: Whether revenue grows faster than operating expenses.
- Competition: How Swiggy performs against Blinkit and Zepto in the quick commerce market.
- Cash position: How much cash the company has and how much it needs to spend on future growth.
A fall in share price does not automatically mean that a stock is cheap or a good investment. Investors should consider the company’s valuation, financial risks, and their investment goals before making a decision.
My Take on Swiggy Results
Swiggy Q2 Results FY27 showed positive signs, including strong revenue growth and a lower net loss compared with the same quarter last year. However, the company’s loss increased compared with the previous quarter, while heavy losses at Instamart remained a major concern for investors. These factors contributed to the sharp fall in Swiggy’s share price on October 23, 2026, when the stock reportedly declined by around 15% during intraday trading. Swiggy’s biggest challenge is not just growing its business but also turning that growth into sustainable profits. Investors should closely monitor the company’s next quarterly results, Instamart’s losses, and improvements in operating margins before making investment decisions.
Frequently Asked Questions
1. How were Swiggy’s Q2 FY27 results?
Swiggy’s revenue from operations increased by around 36% year-on-year to ₹7,571 crore. Its consolidated net loss narrowed to ₹922 crore compared with the same quarter last year, although the loss increased compared with the previous quarter.
2. Why did Swiggy shares fall by around 15%?
Swiggy shares came under pressure due to concerns about Instamart’s heavy losses, rising operating expenses, intense competition, and the time needed to achieve sustainable profitability.
3. How much loss did Swiggy report in Q2 FY27?
Swiggy reported a consolidated net loss of ₹922 crore for the quarter ended September 2026.
4. Is Swiggy’s food delivery business profitable?
Swiggy’s food delivery segment reported adjusted EBITDA of ₹341 crore in Q2 FY27. This indicates positive operating performance in the segment, but adjusted EBITDA is not the same as net profit for the entire company.
5. Should investors buy Swiggy shares after the fall?
The decision depends on an investor’s risk tolerance, investment horizon, and Swiggy’s valuation. A sharp fall in share price alone is not enough reason to buy a stock. Investors should review the company’s financial performance and future growth prospects before investing.
Sources
Moneycontrol — Swiggy Q2 Results and Share Price Fall
Disclaimer: This article is for informational and educational purposes only. It is not investment advice or a recommendation to buy or sell any stock. Please consult a qualified financial advisor before making investment decisions.
