Swiggy Shares Plunge to Record Low Following Instamart Quick-Commerce Losses
Swiggy shares hit a record low as expanding losses at Instamart renew investor concerns over cash burn and profitability in India's quick-commerce sector.
POLICY WIRE — New Delhi, India — Shares of online food delivery and quick-commerce company Swiggy dropped to a record low on Friday, October 23, following news of widening losses in its rapid-delivery arm.
The stock fell as much as 16% following the release of the company’s September-quarter results, marking its largest single-day drop since February 2025. In early trade, the equity was down 4.4% at 202 rupees.
The latest financial figures reveal two distinct trajectories within the aggregator. While Swiggy successfully narrowed its consolidated net loss by 15.6% year-on-year to 922 crore rupees and grew revenue by 36.1% to 7,571 crore rupees, escalating expenses overshadowed the positive metrics.
The food delivery division achieved a record-high quarter for core profitability, but escalating customer acquisition costs and ongoing dark store expansions at Instamart pushed quarterly losses upward. The quick-commerce unit alone reported an adjusted core loss of 8.95 billion rupees, or 895 crore rupees.
The fresh wave of red ink has reignited investor anxiety regarding cash burn and long-term profitability within India’s fiercely competitive quick-commerce landscape, prompting brokerage firm Motilal Oswal to reduce its price target on the stock following rival Eternal’s recent financial disclosures.
Despite the setback, Swiggy management anticipates that financial losses for Instamart reached their peak during the September quarter. The company plans to continue stepping up investments to fuel growth amid intensifying market rivalries.
Reporting by Policy-Wire (PW)
