Swiggy stock hits record low as JM cuts targets 2026

Lifetime low on NSE underscores extended slide

Swiggy shares sank to a fresh all-time low of ₹235.75 on the NSE during Tuesday’s intraday trade, down 1.3%. The move extended a prolonged downtrend that began after the stock recorded a peak of ₹617.30 in December 2024. From that high, the stock has fallen 61.8%, highlighting how quickly investor expectations have reset. The decline has also been sharp in recent periods, with the stock down over 8% so far in June. On a year-to-date (YTD) basis, the stock is down 39.4%.

The weakness was visible in the day’s trading as well. At 10:20 AM on Tuesday, Swiggy traded at ₹237, down 0.8% on volume of around 40 lakh shares on the NSE. The combination of falling price and high volumes indicates sustained selling interest rather than a one-off dip. The day’s move also arrived against a backdrop of repeated brokerage reassessments of Swiggy’s quick-commerce outlook.

How the downtrend built from the 2024 peak

Swiggy’s fall from the December 2024 high has been broad-based, with the stock repeatedly setting new lows. Separate market action noted the stock slipping 5% to an all-time low of ₹285.85 on the BSE in Monday’s intraday trade, breaking below its prior record low of ₹297 touched on May 13, 2025. It recovered marginally to close 4.2% lower at ₹289.4.

That BSE session added to the cumulative drawdown in 2026. With Monday’s fall, the stock’s market price was reported to be down 26% so far in 2026. Another data point in the same set of reports highlighted that Swiggy had more than halved from its record high of ₹617, touched on December 23, 2024. The stock was also said to be trading 27% below its issue price of ₹390 per share, keeping the IPO reference level in focus for investors tracking long-duration returns.

JM Financial’s latest estimate cuts for FY27-29

Analysts at JM Financial Institutional Securities revised earnings estimates for Swiggy and lowered the anticipated target price, pointing to the competitive structure of listed quick commerce. The brokerage said 1QFY27 could reinforce a widening divergence between listed quick-commerce players, with Blinkit expected to significantly outperform Instamart on growth.

In that framework, JM Financial cut its Funded Debt to EBITDA estimates by 8-9% over FY27-29. It also reduced its valuation multiple to 35x EV/adjusted EBITDA from 38x, citing the possibility that margin expansion could be slower from here. Following these changes, it set a revised June 2027 target price (TP) of ₹250 per share, down from ₹280 earlier.

Another JM note: Reduce rating and ₹270 target

A separate JM Financial assessment took a more sceptical view of value creation in Instamart and related verticals. The brokerage downgraded Swiggy to ‘Reduce’ from ‘Add’ and cut its March 2027 target price by 27% to ₹270 from ₹370. It argued that Instamart’s current strategy risked “prolonged value destruction” even as the food delivery franchise remained resilient.

In its sum-of-the-parts (SOTP) approach, the brokerage stripped out Instamart, supply chain and platform innovations by assigning them a zero multiple due to limited visibility on a turnaround. It also argued that cash should be valued at zero in the SOTP, stating that without a meaningful turnaround in those segments, cash would likely continue to deplete. On that basis, it pegged the entire target market capitalisation at ₹753 billion, translating to a fair value of ₹270 per share, driven primarily by food delivery and out-of-home segments.

Profitability and margin assumptions under pressure

Concerns around Instamart’s economics have been repeated across the brokerage commentary. JM Financial Research said Swiggy’s Q3FY26 performance confirmed worries that Instamart was stuck in a zero-sum trade-off between aggressive expansion and profitability. In response, analysts lowered quick-commerce operating profit margin assumptions for FY27 and FY28 by 50-60 basis points.

Those margin changes were linked to a higher loss outlook. The same set of estimates indicated a 10% and 25% increase in losses for FY27 and FY28, respectively. Food delivery assumptions were also trimmed, with margin estimates for FY27 and FY28 cut by 20 and 30 basis points.

Mixed targets over time reflect changing assumptions

Not all JM Financial updates pointed in the same direction, underscoring how sensitive the valuation can be to segment-level assumptions. One market report noted Swiggy shares falling nearly 3% to an intraday low of ₹446.55, after the stock had risen for five consecutive sessions and gained 9% over that period. In that instance, JM Financial Institutional Securities downgraded the stock to ‘reduce’ from ‘hold’ but raised its target price to ₹440 from ₹420.

That target increase was tied to specific factors in the model, including expected stake sale benefits from Rapido, which the brokerage expected to materialise by H2FY26. Another report described a downgrade from ‘Hold’ to ‘Reduce’ and a price target reduced from ₹460 to ₹440, citing a deteriorating balance sheet and escalating competition. Taken together, the brokerage notes show that the headline rating and target price can shift meaningfully depending on how quick commerce, cash use, and non-core asset value are treated.

Key numbers investors are tracking

The recent coverage includes several distinct market datapoints and broker revisions. The table below summarises the most frequently cited figures in the reports.

Market impact: what the data signals

The immediate market impact has been a persistent repricing of Swiggy’s equity as investors weigh quick-commerce cash burn, competitive intensity, and the pace of margin improvement. The stock’s 61.8% drop from the December 2024 peak and fresh lifetime lows indicate that the market is discounting a longer path to profitability in certain segments. High-volume down days, including the Tuesday NSE trade with around 40 lakh shares, suggest that the selling pressure is broad rather than isolated.

Brokerage revisions are also feeding into sentiment. Cuts to EV/adjusted EBITDA multiples, lower target prices, and margin assumption reductions provide a quantifiable framework for why valuations are compressing. The repeated emphasis on Blinkit outperforming Instamart on growth in 1QFY27, and on Instamart being caught between expansion and profitability, has kept the spotlight on quick commerce as the key swing factor in expectations.

Why the brokerage debate matters

The JM Financial notes are important because they present two contrasting valuation treatments for the same company. One approach still assigns explicit value to segments like Instamart using EV/GOV and factors in potential benefits from stake sales, resulting in targets such as ₹440. Another approach removes value for Instamart, supply chain, and platform innovations entirely and focuses the fair value on food delivery and out-of-home, yielding a lower target such as ₹270.

For investors, the practical takeaway is that Swiggy’s near-term narrative is being shaped less by broad sector optimism and more by segment-level unit economics and cash usage. Changes like the cut to 35x EV/adjusted EBITDA and lower funded debt to EBITDA estimates over FY27-29 show that even modest shifts in margin visibility can materially alter equity value assumptions.

Conclusion

Swiggy’s fresh lifetime low on the NSE and the prolonged fall from its December 2024 peak have kept the stock under pressure, with June and YTD declines adding to the downtrend. JM Financial’s revised estimates and target price cuts highlight a market debate centred on Instamart’s path to sustainable economics versus the resilience of the food delivery business. The next major reference points, as flagged in brokerage commentary, include how 1QFY27 shapes the competitive gap in quick commerce and whether expected events such as potential stake-sale benefits by H2FY26 meaningfully change the valuation framework.