Swiggy share price tanked over 7% in early trade on Friday after the company’s net loss widened in the third quarter of FY26. Swiggy shares declined as much as 7.68% to ₹302.25 apiece on the BSE.
Food delivery and quick commerce company Swiggy on Thursday reported a consolidated net loss of ₹1,065 crore in the quarter ended December 2025, higher than the net loss of ₹799 crore recorded in the year-ago period.
The company’s revenue from operations in Q3FY26 increased 54% to ₹6,148 crore from ₹3,993 crore, year-on-year (YoY). Consolidated adjusted EBITDA loss was at ₹712 crores.
Swiggy’s Food Delivery business Gross Order Value (GOV) growth accelerated to 20.5% YoY, to ₹Rs 8,959 crore. Food delivery MTUs grew 22% YoY to reach 18.1 million. Adjusted EBITDA margin improved to 3.0% of GOV, up 56 bps YoY, and up 22 bps QoQ.
Swiggy’s quick-commerce business, Instamart, reported gross order value (GOV) growth of 103.2% YoY and 13% QoQ to ₹7,938 crore, marking the fourth consecutive quarter of over 100% YoY growth. However, the segment posted a ₹908 crore loss for the December quarter, and adjusted EBITDA margin further improved to -11.4% from -12.1%.
Should you buy Swiggy shares after Q3 results?
Brokerage firm Motilal Oswal Financial Services Ltd (MOFSL) believes near-term growth in quick commerce could be lower for Instamart due to aggressive competition, but improving unit economics through higher AOVs, better store utilization, and controlled reinvestment provides visibility on gradual margin improvement.
“At this level, Swiggy’s valuation offers support despite elevated competitive intensity. Steady improvements in AOV, dark store throughput, alongside stable Food Delivery growth, could help narrow the valuation gap with peers over time, subject to a more rational competitive environment,” MOFSL said.
The brokerage firm values the Swiggy’s Food Delivery business at 35x FY27E EV/EBITDA and Quick Commerce business using DCF. It reiterated its ‘Buy’ rating on Swiggy shares and cut the target price to ₹440 apiece.
Swiggy share price has fallen 21% in one month and has declined more than 27% in three months. The stock has dropped 24% in six months and 24% in one year.
Nuvama Institutional Equities noted that Swiggy’s food delivery business continues to demonstrate growth acceleration while profitability has exhibited a steady improvement. Instamart growth slowed down, hurt by elevated competition and management’s efforts to chase quality growth.
“We are cutting quick commerce growth estimates, as management is prioritizing higher quality user acquisition and higher AOV orders while upgrading supply chain growth estimates. Net losses are lower, driven by higher other income following increased cash balances from the QIP and the Rapido stake sale,” Nuvama Equities said.
The brokerage firm tweaked FY26E and FY27E EBITDA estimates by –3.1% and -15.5% due to higher-than-expected losses on the back of competitive intensity in QC. It now values Food delivery business at 35x adjusted EBITDA and Instamart business at 0.7x NOV.
Nuvama maintained a ‘Buy’ rating and reduced Swiggy share price target to ₹490 a piece from ₹510 earlier.
At 9:28 AM, Swiggy share price was trading 5.44% lower at ₹309.60 apiece on the BSE.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
