New Delhi: Food delivery giant Swiggy has seen its share price tumble back to near its issue price, raising concerns among investors. Listed last November, the stock initially surged, but it has now slipped close to ₹390, almost matching its IPO price. This comes after hitting an all-time high of ₹617, marking a 36% decline from the peak.
Stock Performance Recap
After listing on 13 November 2024, Swiggy shares surged 58% in the first six weeks to ₹617. However, the rally was short-lived. Over the next six months, the stock plunged 52% to ₹297 in May 2025. Since then, the price has recovered slightly but remains volatile, leaving investor confidence shaky.
Financial Health
Swiggy’s losses continue to mount, despite rising revenues. The Q2FY26 consolidated net loss was ₹1,092 crore, up from ₹626 crore during the same period last year, though slightly below Q1FY26’s ₹1,197 crore loss. The widening loss is attributed mainly to the rapid expansion of its Quick Commerce (instant delivery) business. Revenue, however, grew 54% year-on-year to ₹5,561 crore.
Expert Insights
Analysts from Nuvama Institutional Equities believe Swiggy’s current challenges stem from missed opportunities between 2019 and 2024. During this period, Swiggy fell behind Zomato in food delivery and, despite entering quick commerce, trailed competitors Blinkit and Zepto.
Despite these hurdles, both Bernstein and Nuvama see potential upside. Nuvama has issued a “Buy” recommendation with a target price of ₹510, suggesting a 28% potential gain from the current market price of ₹397.
What Investors Should Know
While Swiggy faces short-term volatility, analysts indicate that its revenue growth and strategic investments in quick commerce could drive long-term recovery. Investors are advised to weigh the company’s growth prospects against its ongoing losses and market competition before making decisions.
Swiggy’s stock journey serves as a cautionary tale for IPO investors: early euphoria can give way to market reality, but fundamentals and strategic positioning may offer a path forward.
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