Swiggy Shares Crash 11% To 8-Week Low At INR 427.20

Shares of foodtech major Swiggy nosedived nearly 11% to hit an 8-week low of INR 427.20 apiece on the BSE during early trading hours today (January 21).

However, the stock recouped some of its losses later and was trading 7.72% lower at INR 442 at 1:17 PM.

Amid the fall in its share price, the Instamart parent’s market capitalisation declined to INR 98,379.76 Cr (around $11.4 Bn).

The decline in Swiggy’s share price came a day after its rival Zomato posted weak Q3 FY25 results, raising concerns among investors.

Zomato’s consolidated net profit declined over 57% year-on-year to INR 59 Cr in the third quarter of the ongoing fiscal year due to a slowdown in the food delivery segment and rising competition in the quick commerce market.

Meanwhile, Zomato’s quick commerce arm Blinkit saw its adjusted EBITDA loss zoom nearly 13X to INR 103 Cr in the December quarter on a sequential basis.

Following the weak set of numbers, brokerages such as Nomura and Jefferies cut their target price for Zomato. The negative sentiment appears to have spilled over to Swiggy.

Swiggy’s share price has slipped over 6% in the last trading session and crashed almost 24% in the past month. 

It must be noted that Swiggy went public on November 13, with its shares listing at INR 412 apiece on the BSE, a premium of almost 6% to its IPO issue price.

Last month, JP Morgan initiated coverage on the foodtech giant with an ‘overweight’ rating and set a target price of INR 730. Axis Capital has a ‘buy’ recommendation for the stock and a target price of INR 640.

Swiggy has been ramping up its efforts to expand its quick commerce reach into newer regions, while also entering new segments of the market.

For instance, earlier this month, Swiggy received approval from the corporate affairs ministry (MCA) to incorporate its sports arm, Swiggy Sports Private Limited. Before that, it entered the services marketplace segment with the launch of a new app called Pyng Professional.