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Swiggy Stock Plummets: Shares Drop 17%, Reaching New 52-Week Low
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Aaj Tak
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Swiggy Stock Plummets: Shares Drop 17%, Reaching New 52-Week Low

Due to unsatisfactory quarterly results, analytical firms lowered their target prices for Swiggy shares following the September 2026 report. Consequently, the company's stock sharply declined, losing over 17 percent during Friday's trading session.

This marked the most significant intraday drop since its listing. The shares reached a new 52-week low, leading to a decrease in market capitalization by 10,000 crore rupees, thereby reducing investor assets by that amount.

On Friday, Swiggy Limited shares fell by 17.22 percent, reaching the mark of 174.90 rupees, which brought the market capitalization below 48,300 crore rupees. It is worth noting that compared to the 52-week high in October 2025, when the price was 434.50 rupees, there was a drop of 60 percent. Furthermore, from a record level of around 595–600 rupees in December 2024, a decline of more than 70 percent was observed.

Swiggy shares lost more than 55 percent of their initial offering price (IPO), which was 393 rupees. The company went public in November 2024, raising a total of 11,327 rupees from investors at an evaluation of 1.02 lakh crore rupees. As a result, the company led to an approximate loss of 55,000 crore rupees in investor assets.

The main problem for Swiggy is the continuous growth of net losses, especially in the express delivery segment. Market participants are questioning its performance standards, noting that it appears less competitive compared to Eternal. The profitability of the Instamart business is causing the greatest concern.

JM Financial Limited attributed three-quarters of the losses to delivery (toing), which resulted in a decline in joint venture profits. Due to this, the target price was lowered to 200 rupees, as the company maintained an unchanged FD multiplier ratio of 35, while Instamart or Cash continued to receive a zero price. The company stated that it believes in the necessity of discontinuing delivery.

According to Nirmal Bang Institutional Equities, the food delivery segment shows record profits, and Instamart is gaining momentum again. However, the second quarter report for the fiscal year 2027 confirms that Swiggy has firmly entered the development phase of Instamart, where the contribution of express delivery and consolidated losses are planned to gradually decrease in the near future. A reduction in EBITDA was also noted. Analysts at the brokerage firm assigned a 'BUY' rating but lowered the target price to 340 rupees.

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Major company's stock fell by 10%; investors concerned about the reasons for the decline
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Major company's stock fell by 10%; investors concerned about the reasons for the decline

Despite the continuous rise in crude oil prices, the Indian stock market is currently under pressure and showing a decline. A significant drop is observed among many stocks. On Thursday, shares of a cable company fell by more than 10%.

On Thursday, shares of KEI Industries, a manufacturer of cables and wires, dropped to around 3728.70, approaching its fifty-two-week low. Following this, there was a slight recovery, and the stock is currently trading with a decline of more than 7%.

The stock decline occurred after the publication of the company's quarterly financial results. For the quarter ending in September 2026, the company reported an operating profit below expectations. Meanwhile, the company's revenue increased by 38.5% year-on-year, reaching 3776 crore rupees. EBITDA grew by 39.8%, amounting to 377 crore rupees, and net profit after tax increased by 29% to 262 crore rupees.

Thanks to improved operating profit potential and a more favorable product mix, the EBITDA margin improved by 9 basis points year-on-year, reaching 10%. The company stated that the revenue growth was driven by high market demand. Revenue from only sectors amounted to 3669 crore rupees, which is 40% higher year-on-year, while revenue from stainless steel and EPC was 63 and 104 crore rupees, respectively. Internal revenue of W&C grew by 46%, and exports grew by 7% year-on-year. By the end of the second quarter, the company's order book stood at 5185 crore rupees.

Motilal Oswal Financial Services noted that KEI's EBITDA meets the forecasts for the second quarter. This figure was supported by strong revenue growth in the C&W and EPC segments. However, the EPC business incurred losses this quarter. In its update on the second-quarter results, the brokerage firm stated its positive view on the C&W sector due to strong long-term growth prospects. The brokerage firm assigned a 'Buy' rating to this stock.

Indian stock market sharply declines: Sensex index loses over 1000 points
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Indian stock market sharply declines: Sensex index loses over 1000 points

The Indian stock market experienced a sudden and significant decline on Monday. The Sensex index lost about a thousand points, while the Nifty also fell by approximately 300 points.

By 1:30 PM, the Sensex had dropped by 930.80 points or 1.25%, reaching 73,798.47, while the Nifty closed at 22,867.75, showing a fall of 278.40 points or 1.20%.

Out of 30 stocks listed on the BSE, only 4 showed a slight increase, while the remaining 26 experienced a substantial drop. HDFC Bank contributed the most to the decline, with its shares falling by approximately 3%. This was followed by Axis Bank, which fell by about 4%, Infosys by 3%, as well as stocks like Trent, HDFC Bank, Hindustan Unilever, and Bajaj Finance, which decreased by more than 2%.

Investor losses amounted to 400 billion rupees

This sharp downturn led to a significant reduction in investor earnings. The market capitalization of BSE companies decreased from 472 billion rupees to approximately 468 billion rupees, corresponding to a loss of about 400 billion rupees.

Four reasons for the decline

1. Significant drop in banking stocks: Following the release of second-quarter results for the fiscal year 2027 by private banks, including HDFC Bank, bank stocks fell by 2%, and this bank entered the list of stocks with the largest losses in the Nifty 50. Furthermore, Axis Bank shares also fell by more than 4%; there was also a decline in the shares of Kotak Mahindra Bank and ICICI Bank.

2. Weak sentiment: The MSCI, the broadest index of the Asian stock market, declined by 0.5%. While the KOSPI of South Korea recovered from an initial fall and reached a gain of 0.2%, the Nikkei 225 futures of Japan dropped by 1.3%, the Hang Seng futures of Hong Kong fell by 0.2%, and the Shanghai Composite also dropped by 0.2%.

Additionally, the US market recorded a sharp decline on Friday as sales of AI-related IT stocks resumed, and crude oil prices continued to rise, which was also a blow to the Indian market.

3. High crude oil prices: Brent Crude fell by 1.5% to $108.27 per barrel, and WTI fell by 0.6% to $100.83 per barrel. Despite the drop on Monday, crude oil prices remained high, and the impact of geopolitical tensions persisted on market sentiment.

4. Rise in VIX in India: The fear index, or volatility index, rose by almost 4%, reaching 14.52, indicating increased uncertainty among investors.

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