Swiggy shares crash 12% to record low: Why is the stock falling so sharply?

Swiggy shares have been under sustained pressure. As of 9:50 am on October 23, the stock was down 19.51% over the past five trading sessions, 33.27% over the past month and 36.58% over the past six months. The decline has been even steeper in 2026 so far, with the stock falling 52.43% year to date to Rs 185.85.Instamart's adjusted loss widened to Rs 895 crore in Q2.New Delhi,Oct 23, 2026 10:07 ISTSwiggy shares plunged nearly 12% on Friday, hitting a record low as investors grew concerned about mounting losses in its quick-commerce business Instamart and the cost of competing in India's crowded instant-delivery market.The stock fell to an intraday low of Rs 184.90, down Rs 26.40, or 12.49%, from its previous close of Rs 211.30. It was trading at Rs 186.15, down 11.90%, in the latest available snapshot.Swiggy shares have been under sustained pressure. As of 9:50 am on October 23, the stock was down 19.51% over the past five trading sessions, 33.27% over the past month and 36.58% over the past six months. The decline has been even steeper in 2026 so far, with the stock falling 52.43% year to date to Rs 185.85. The sharp decline comes after Swiggy reported wider losses at Instamart for the September quarter, putting profitability back in focus as the company continues to expand its quick-commerce operations. The stock's fall also follows investor scrutiny of rival Eternal's results this week. Here are three key reasons behind the sharp fall in Swiggy shares.INSTAMART'S LOSSES WIDENThe biggest concern is the widening loss at Instamart, Swiggy's quick-commerce business. Its adjusted core loss increased to Rs 895 crore in the September quarter from Rs 849 crore a year earlier. Quick-commerce companies are expanding rapidly by setting up small warehouses, known as dark stores, to enable deliveries within minutes. While the model can drive order growth, expanding the network and competing for customers can put pressure on profitability.Investors are increasingly looking for evidence that growth in orders and sales can translate into improving unit economics. Wider losses raise questions about how much Swiggy may need to spend before Instamart can become sustainably profitable.INTENSE COMPETITION KEEPS PROFITABILITY IN FOCUSSwiggy and rival Eternal have been expanding their dark-store networks as quick commerce becomes an increasingly important growth driver. But aggressive expansion and competition are keeping costs and profitability under scrutiny.Investors are assessing whether sustained growth in order values, better customer retention and higher store utilisation can eventually improve margins.Brokerage Emkay said sustained double-digit sequential growth in Instamart's net order value, alongside improvements in customer retention, monetisation and store utilisation, could support a higher valuation for the stock.The concern is that growth alone may not be enough if the cost of acquiring customers, fulfilling orders and expanding the network continues to weigh on earnings.BROKERAGES CUT TARGET PRICESBrokerages remain positive on Swiggy's longer-term potential, but their lower target prices reflect concerns about the pace of profitability improvement.Jefferies maintained its 'buy' rating but cut its target price to Rs 330 from Rs 435. The brokerage flagged Instamart's losses as a key concern, while arguing that Swiggy's current share price did not fully reflect the value of its food-delivery business and cash holdings.Emkay also retained its 'buy' rating but reduced its target price by 11% to Rs 310. It described food delivery as a strong franchise with operating leverage, while viewing quick commerce as an additional growth opportunity.The lower targets suggest that analysts still see potential in Swiggy, but want clearer evidence that Instamart can improve its financial performance.(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)- Ends