Swiggy Shares Slide to 52-Week Low as Losses Widen, Competition Heats Up

Swiggy Ltd. shares plunged to a new 52-week low of ₹297 in early trading on Tuesday, before paring some losses to trade at ₹311.60 by 11:54 AM IST - down 2.72% from the previous close. The decline comes in the wake of the company’s disappointing Q4 earnings, increased competitive heat from Zepto, and a major lock-in expiry that flooded the market with fresh equity.

The online food delivery platform reported a consolidated net loss of ₹1,081 crore for the March quarter, nearly double the ₹555 crore loss it posted a year ago. While revenue grew strongly to ₹4,410 crore, up 45% from the year-ago period, the topline expansion was overshadowed by ballooning expenses, which rose to ₹5,610 crore, driven largely by heavy investments in its quick commerce arm, Instamart.

Despite this, Swiggy saw improvement in key operating metrics. The gross order value (GOV) for its food delivery business rose 17.6% year-on-year to ₹7,347 crore. Adjusted EBITDA for the quarter stood at ₹212 crore, and margins expanded to 2.9% of GOV from just 0.5% a year ago. However, the company tempered investor expectations by pushing its break-even target further out, from the previously guided Q3 FY26 to a broader window between Q3 FY26 and Q2 FY27.

Adding to investor anxiety, rival Zepto emerged in the spotlight after Motilal Oswal and Raamdeo Agrawal invested ₹424 crore each in a secondary share purchase. The transaction signals growing institutional confidence in Zepto’s prospects, especially as it reportedly surpasses Swiggy’s Instamart in daily quick commerce orders. The $100 million deal, part of a larger $250 million funding round in the pipeline, underscores Zepto’s aggressive bid to bolster Indian ownership ahead of its own IPO.

Swiggy’s stock also faced downward pressure as its post-IPO shareholder lock-in period expired today, freeing up 189.8 crore shares - roughly 85% of the company’s outstanding equity - for trading. At current prices, the newly eligible shares represent a potential market supply of $738 million, raising concerns of a temporary supply overhang as early investors look to monetize their holdings.

Market Reaction

After opening at ₹305, Swiggy’s shares briefly climbed to an intraday high of ₹315.25, before retreating sharply amid broader sell-off sentiment triggered by these multiple headwinds.

The coming weeks will be crucial as the market assesses Swiggy’s ability to rein in losses, defend its market share, and navigate intensifying competition in the fast-growing but fiercely contested quick commerce space.

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