Swiggy Loses ₹9,000 Crore in Market Value

Swiggy (

) shares faced sharp selling on October 23, wiping out approximately ₹9,000 crore in market value in a single session. The trigger was growing investor concern over Instamart’s widening losses, despite sequential growth in quick-commerce orders and continued strength in food delivery. What Do the Q2 FY27 Numbers Show? Revenue from operations rose 36% year-on-year to ₹7,571 crore. Consolidated net loss narrowed to ₹922 crore from ₹1,092 crore a year earlier, but widened from ₹792 crore in the previous quarter. Instamart’s gross order value grew 31% year-on-year to ₹9,230 crore. Instamart’s adjusted EBITDA loss widened to ₹895 crore from ₹778 crore in the previous quarter. Its contribution margin deteriorated sequentially to -1.4%, despite 13.4% sequential growth in net order value. Food delivery adjusted EBITDA rose 42% year-on-year to ₹341 crore, with margins improving to 3.4% of gross order value. Why Are Investors Losing Patience? Instamart continues to invest in dark stores, customer acquisition and order growth. Swiggy added 69 dark stores during the quarter, taking its network to 1,240. However, higher scale has not yet translated into improving sequential profitability. Brokerages have cut their target prices, citing rising losses, intense competition and limited visibility on the path to profitability. Management believes Instamart’s losses have peaked, but the business still needs substantially greater scale and improved contribution per order to break even. My View Swiggy’s core food-delivery business remains a source of operating strength, but Instamart is the key variable influencing investor confidence. Revenue growth alone may not be enough if customer acquisition and expansion costs continue to delay profitability. Investors should track Instamart’s contribution margin, order growth, dark-store productivity and the pace of loss reduction. Food-delivery growth relative to competitors also deserves attention.