Why Swiggy’s Stock Is Falling: What Q3 FY26 Really Told the Market

Swiggy’s stock has come under sharp pressure after its Q3 FY26 earnings, and the reaction says more about expectations 

On January 30, 2026, Swiggy shares fell nearly 8% intraday, touching a low of ₹302.15 on the NSE. This came after gaining 8% in just three sessions, making the reversal even more striking. Over a slightly longer horizon, the trend looks worse: the stock is down 19% in one month and 22% over six months, The trigger for the recent fall was clear. While revenue growth remained strong, losses widened, and the market is no longer willing to accept that.

Strong Revenue Growth, But the Quality of Growth Is Questioned

Swiggy reported a 54% year-on-year jump in revenue to ₹6,148 crore for Q3 FY26. On the surface, that is an impressive number and shows that consumer demand for its platforms remains healthy.

However, the bottom line moved in the opposite direction. Net losses widened 33% YoY to ₹1,065 crore, largely because of continued heavy spending in quick commerce through Instamart.

Food delivery, Swiggy’s core and most mature business, finally showed signs of stability. Adjusted EBITDA margins turned positive at 0.7%, a small but psychologically important milestone. This segment is no longer the problem.

Instamart, however, is where investor confidence started to crack.

Instamart: Scale Is Growing, Losses Are Growing Faster

Instamart’s numbers tell a classic quick-commerce story. Gross order value doubled year-on-year to ₹7,938 crore, and revenue rose 76% to ₹1,016 crore. But despite this scale, losses in the segment widened to ₹908 crore during the quarter.

Contribution margins slipped further to 11.4%, showing that incremental growth is still loss-making. The reasons are structural rather than temporary. Swiggy expanded its dark store network to over 1,130 locations, increasing fixed costs at a time when competition from Blinkit and Zepto remains intense. Higher incentives, seasonal spending, and aggressive customer acquisition pushed costs up faster than revenues.

Even though average order values improved to ₹746, the market read this quarter as proof that scale alone is not yet translating into operating leverage.

Why the Market Reacted So Sharply

The stock fall was not just about losses; it was about missed expectations.

Swiggy’s Q3 performance came in below consensus estimates on both revenue and EBITDA, immediately triggering brokerage downgrades. CLSA, for instance, cut its rating to Hold and lowered its target price to ₹335, citing a longer and steeper path to breakeven in quick commerce.

This disappointment was magnified by recent history. Earlier in January, Swiggy’s stock had already slipped below its ₹375 QIP price, signalling that institutional investors were growing uncomfortable with the pace of cash burn and slowing efficiency gains.

Analysts Are Split, But Caution Dominates

Broker opinions remain divided. Optimistic houses like Nomura continue to argue that Swiggy’s food delivery business is structurally strong and that quick commerce spending could be moderated if required. More neutral voices, such as Morgan Stanley, remain on an Equal Weight stance..

On the bearish end, firms like CLSA believe that Instamart’s economics will take longer to stabilise, making near-term valuation support difficult.

The Bigger Issue: Markets Now Want Profits, Not Just Growth

Swiggy’s sell-off reflects a broader shift in investor mindset. Capital markets are no longer rewarding “growth at any cost,” particularly in consumer internet businesses where competition is fierce and pricing power is limited.

Quick commerce remains a strategic bet, but investors now want clearer answers on unit economics, capital efficiency, and timelines. Without that clarity, every quarter of widening losses invites sharper reactions.

Swiggy is not struggling because demand is weak. It is struggling because the market is asking harder questions.

Food delivery has stabilised. Instamart is scaling rapidly. But until losses in quick commerce show credible signs of peaking, Swiggy’s stock is likely to remain volatile.

The next few quarters will matter less for headline growth and far more for cost control, contribution margins, and cash discipline. That more than revenue growth will decide whether this stock finds a floor or continues to slide.