Swiggy shares fall 7% as Q4FY26 loss narrows to Rs 800 cr

What moved the stock on Monday

Swiggy shares slid sharply in early trade after the company reported its March-quarter results, even as headline numbers showed a narrower loss and strong revenue growth. The stock fell as much as 6.9% to an intra-day low of Rs 261.2 on the BSE, compared with a previous close of Rs 280.50. It later pared part of the decline and was quoted around Rs 266.6 in one update, while another data point showed the stock trading near Rs 267.90 at 10:52 IST. On the NSE, the stock was reported down 5.28% at Rs 265.70 on May 11. The fall came alongside weakness in the broader market, with the BSE Sensex down 1.14% at 76,445.60 in the same window.

Q4FY26 numbers: loss narrows, revenue rises

For the quarter ended March 31, 2026 (Q4FY26), Swiggy reported a consolidated net loss of Rs 800 crore. This was lower than the net loss of Rs 1,081 crore in the year-ago quarter (Q4FY25) and also below the sequential loss of Rs 1,065 crore in Q3FY26. Revenue from operations rose 45% year-on-year to Rs 6,383 crore, up from Rs 4,410 crore in Q4FY25. One report also highlighted that Q4 revenue beat analyst consensus of Rs 6,161 crore, as per the company’s exchange filing. Sequentially, revenue increased from Rs 6,148 crore in Q3FY26.

Food delivery shows strongest growth in 15 quarters

Swiggy said its food delivery business delivered its strongest growth in 15 quarters. Food delivery gross order value (GOV) increased 22.6%-23% year-on-year to Rs 9,005 crore in Q4FY26. Monthly transacting users in the food delivery segment grew 21% year-on-year to 18.3 million. Adjusted EBITDA in food delivery grew about 39.8%-40% to Rs 297 crore, while margins improved to 3.3% of GOV from 2.9% a year earlier. Another note said food delivery crossed Rs 1,000 crore in annual adjusted EBITDA, signalling stronger unit economics in the core business.

Quick commerce: Instamart grows, but competition stays a concern

Swiggy linked loss contraction partly to growth in its quick commerce arm, Instamart, which helped “close the margin of loss.” Instamart GOV rose 68.8% year-on-year to Rs 7,881 crore in Q4FY26. However, it was marginally lower than Rs 7,938 crore in the December quarter, pointing to slower sequential momentum. Net order value (NOV) grew 4% sequentially to Rs 5,675 crore. Executives also said the company would avoid aggressive discounting-led expansion, even if that meant slower near-term growth.

Expansion and operations: dark stores and temporary delivery constraints

Swiggy added seven dark stores during the quarter, taking the total to 1,143 stores across 129 cities. It also reported that total darkstore area increased to more than 4.8 million sq ft, up 21.1% year-on-year. Separately, the company flagged a temporary industry-wide supply constraint in delivery partners, citing the confluence of peak harvest season and major state elections. It said this led to momentary increases in promised delivery times in some cities and required demand throttling through surges and serviceability calibration. Swiggy added that it expects the situation to start normalising over the next couple of weeks.

Full-year FY26: losses widen despite strong top-line growth

For FY26, Swiggy’s consolidated loss widened 33% to Rs 4,154 crore from Rs 3,117 crore in FY25. Consolidated revenue from operations for FY26 was Rs 23,053 crore, up from Rs 15,227 crore in FY25. Another update cited total income rising 51% to Rs 23,561 crore in FY26 from Rs 15,623 crore in FY25, and total income of Rs 6,649 crore for the March quarter. The full-year picture, including a higher absolute loss, remained a key context for investor caution even after a better March-quarter print.

Brokerages: mostly ‘Buy’, but targets trimmed

Several brokerages stayed constructive on the stock’s long-term prospects, while trimming target prices due to quick commerce competition and valuation assumptions. Nuvama maintained a ‘Buy’ rating with a target price of Rs 477. Nomura kept a ‘Buy’ but cut its target to Rs 473 from Rs 546, citing a lower quick commerce GOV growth rate and a lower multiple (from 1x earlier to 0.6x on FY28F net order value in the QC business). Citi retained a ‘Buy’ with a target price of Rs 415.

Other calls included Emkay Global Financial Services ‘Buy’ with a target of Rs 350, Motilal Oswal ‘Buy’ with a target cut to Rs 320 from Rs 390, Equirus ‘Long’ with a target cut to Rs 390 from Rs 440, and ICICI Securities ‘Buy’ with a target cut to Rs 520 from Rs 600. Morgan Stanley was more cautious with an ‘Equal Weight’ rating and a target price of Rs 322, warning that quick commerce growth may slow in FY27. Kotak Mahindra Bank maintained a ‘Buy’ with a target of Rs 370, while JM Financial had a ‘Reduce’ rating with a target of Rs 270; Nirmal Bang maintained a ‘Buy’ with a target of Rs 363.

Key numbers snapshot

Why the market reaction stayed negative

The immediate price reaction suggested investors were not only tracking loss reduction, but also the speed and certainty of the path to profitability. Multiple reports pointed to intensifying competition in quick commerce as the central overhang, with discounting and incentives shaping growth and market share outcomes. One note also cited a wide guidance range of Rs 1 lakh crore GOV in 3.5 to 5 years as a factor that markets may read as uncertainty.

Broader risk-off sentiment also played a role. The selloff coincided with declines of over 1% in Sensex and Nifty in some updates, linked to higher crude prices after fading hopes of a US-Iran peace deal. Another report said sentiment was further hit after Prime Minister Narendra Modi urged citizens to cut use of petrol, diesel and other imported goods amid rising crude oil prices and current account deficit concerns.

Conclusion: stronger quarter, tougher questions on quick commerce

Swiggy’s Q4FY26 results showed a clear improvement in quarterly losses and strong revenue momentum, with food delivery posting its strongest growth in 15 quarters. But the stock’s decline underlined that investors remain focused on quick commerce competition, sequential trends in Instamart, and how quickly consolidated losses can narrow further. Over the near term, brokerage revisions, management commentary on discounting discipline, and subsequent quarterly updates on NOV and margins are likely to remain key checkpoints for the market.