Brokerages offered mixed assessments of Swiggy’s performance in third quarter of FY26, with analysts highlighting strong food delivery momentum being overshadowed by mounting losses in quick commerce that underscore competitive pressures threatening near-term profitability.
The company reported a consolidated net loss of Rs 1,065 crore during the quarter, up 33% year-on-year. Revenue from operations jumped 54% to Rs 6,148 crore.
The stock fell 4.98% to Rs 311.10 on the BSE on Friday as investors weighed widening quick commerce losses against strong food delivery performance.
Food Delivery Momentum
Brokerages said food delivery was the bright spot, with the segment’s gross order value (GOV) growth of 20.5% exceeding management’s guidance of 18-20% growth and margins expanding to 3%. BNP Paribas noted that “festive season demand, expansion of the Swiggy One program, and premiumisation” drove performance.
However, analysts flagged mounting concerns over Swiggy’s quick commerce arm, Instamart. Motilal Oswal noted Instamart’s take rate and contribution margin saw a decline during the quarter due to higher promotional expenses and competitive intensity.
While food delivery continues to show resilience, JM Financial said, the path to profitability for Instamart remains a key monitorable, describing quick commerce as a “work in progress” for Swiggy.
Strategic Operational Shifts
BNP Paribas said consolidated Ebitda was lower than estimated due to “higher-than-expected losses” in quick commerce, with the platform deciding to “let go of some of the low-value, loss-making orders” to prioritise a “sustainable business.”
Despite new entrants, BNP Paribas believes “new competition does not have any structural advantages” and maintains confidence in Swiggy reaching “contribution breakeven by Q1FY27.” The brokerage suggested the current stock price “more than factors in the increased competition,” with food delivery and cash reserves alone covering entire valuation.