Swiggy shares plunge 7% after Q4 results. What are Nomura, Citi and others saying?

Swiggy shares nosedived 7% to the day’s low of Rs 261 on the BSE on Monday after the food delivery and quick commerce giant reported a net loss of Rs 800 crore for the fourth quarter of FY26. However, the loss narrowed from Rs 1,081 crore reported in the corresponding quarter of the previous financial year.

The company released its results post-market hours on Friday. While net loss contracted, revenue from operations rose 45% year-on-year (YoY) to Rs 6,383 crore in the January-March quarter of FY26.

Swiggy’s food delivery business posted its strongest growth in 15 quarters, with gross order value (GOV) rising 23% YoY to Rs 9,005 crore in the quarter ended March 31, 2026. Monthly transacting users in the food delivery segment grew 21% YoY to 18.3 million.

Adjusted EBITDA for the food delivery business rose 40% to Rs 297 crore, while adjusted EBITDA margin improved to 3.3% of GOV, up 41 basis points YoY and 26 basis points quarter-on-quarter (QoQ).

Instamart, Swiggy’s quick commerce arm, reported a 68.8% YoY increase in gross order value (GOV) to Rs 7,881 crore. The company added seven dark stores during Q4, taking its network to 1,143 stores across 129 cities, covering 4.8 million sq ft. Average order value rose 32.8% YoY to Rs 700, driven by a higher non-grocery mix and larger basket sizes.

“In quick commerce, the next phase will be defined by anticipating consumer needs, not merely fulfilling them. Unit economics continue to improve quarter on quarter, and we remain on track for contribution margin breakeven in line with our guidance,” Swiggy MD and Group CEO Sriharsha Majety said.
Nuvama on SwiggyNuvama maintained its ‘Buy’ rating on Swiggy shares with a target price of Rs 477 apiece, implying an upside potential of more than 70% from the stock’s previous closing price of Rs 280.50 on the NSE.

The brokerage highlighted that Instamart’s growth moderated as management targets contribution margin breakeven in Q1, with a focus on higher-retention cohorts. “We are tweaking FY27E/28E EBITDA by +4.6%/+1.3%, factoring in growth moderation while keeping the margin trajectory unchanged,” Nuvama said.

Nomura on Swiggy

Nomura maintained its ‘Buy’ rating on Swiggy shares, but cut its target price to Rs 473 apiece, implying an upside potential of nearly 69% from the stock’s previous closing price.

The brokerage said the company reported strong earnings growth in the food delivery segment, while quick commerce margins are improving gradually. It added that Swiggy remains well-funded to weather near-term headwinds, according to a CNBC-TV18 report.

Citi on Swiggy

Citi retained its ‘Buy’ call on Swiggy shares with a target price of Rs 415 apiece, implying an upside potential of nearly 48% from the stock’s previous closing price.

While competition in quick commerce remains a major headwind for Swiggy, key operating metrics continue to improve steadily, the brokerage said in the report.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)