Swiggy shares jump 5% a day after Q2 results sparked a 17% crash. Why brokerages remain bullish despite target price cuts

Swiggy shares jumped nearly 5% on Monday, a session after crashing nearly 17% following its Q2 results, which spooked investors and prompted brokerages to cut their target prices, even as they retained bullish ratings on the food delivery and quick commerce major.

Swiggy shares rose to Rs 184.35 apiece on Monday morning. This came after the stock tumbled to a lifetime low of Rs 174.95 apiece on Friday, more than half of the record high level of Rs 434 the stock had hit less than a year ago in October 2025.

The sharp selloff on Friday was triggered after Swiggy announced its Q2 results for the second quarter of FY27. The company’s overall net loss narrowed to Rs 922 crore, from Rs 1,092 crore in the same quarter of last year. However, the rising losses in the quick commerce segment, Instamart, spooked investors, offsetting food delivery’s strong gains.


Also read | Swiggy Q2 Results: Loss narrows YoY to Rs 922 crore; revenue jumps 36%

Instamart’s adjusted EBITDA loss widened to Rs 895 crore from Rs 849 crore a year earlier and Rs 778 crore in the June quarter, as the company stepped up investments to attract customers and improve order frequency. It added 69 net dark stores during the quarter to cater to the highly competitive market.

Swiggy's core food delivery business continued to improve profitability, with GOV increasing 17.7% year-on-year to Rs 10,054 crore. The segment reported its highest quarterly adjusted EBITDA of Rs 341 crore, up 42% from Rs 240 crore a year earlier.

What brokerages expect for Swiggy?

Jefferies maintained its stance that Swiggy is a high-risk, high-reward stock, while reducing its target price to Rs 330 apiece. It noted that the current share price does not fully reflect the value of the food delivery business and existing cash, while the company's performance remains lacklustre compared with market leader Eternal. The brokerage said reducing quick commerce losses is essential for value discovery, as this remains a key investor concern.

Nomura also maintained its ‘Buy’ rating while slashing the target price to Rs 300, continuing to view food delivery as a cash-generating business for Swiggy. Bernstein reiterated its ‘Outperform’ rating, while noting that the contrast with Blinkit's performance is testing investor patience over Instamart's turnaround and path to profitability.

Also read | Rs 9,000 crore wiped out in a day: Why Swiggy investors are losing patience with Instamart

Swiggy share price

Swiggy shares have dropped more than 20% in a week and 31% in a month, with the stock overall being down more than 53% in 2026 so far. The stock has overall fallen around 57% in one year.

The company has a market capitalisation of a little over Rs 50,320 crore.

Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.