After a spell of running with the bulls, Swiggy is grappling with bears. The stock fell below its issue price this week and the pre-IPO concerns around overvaluation are finally playing out in the public markets.

On the final day of trading in the week, Swiggy stock fell up to 2.5% to INR 379.20 on the BSE, around 3% below the IPO issue price of INR 390, before ending the week at INR 380.

Despite reporting YoY revenue jump of 31%, Swiggy’s Q3 loss widened to INR 799 Cr, and the company did not exactly show the kind of growth expected on the quick commerce front, where revenue and average order value growth was under par.

In fact, most analysts expect Swiggy’s operating losses to balloon in Q4, and in many ways this also calls for more patience from investors.

The dual effect of dark store expansion and growing customer acquisition costs are likely to significantly intensify the pressures on Swiggy’s stock price in the opinion of many brokerages covering the stock .

To be clear, most brokerages are bullish on Swiggy because of improvements in the food delivery business, where the take rate has remained steady. Many credit the launch of Bolt as a key factor in keeping food delivery on track. It is Instamart that is a problem area.

Brokerages expect a sharp deterioration in Instamart’s margin profile due to heightened competition, and higher spending on expansion. Among the marquee brokerages, the likes of JP Morgan, Bernstein, Motilal Oswal and JM Financial slashed the price targets for March 2026.

However, UBS, BofA Securities, JM Financial and Kotak remained bullish, expecting an upside of between 18% and 60% from the current price.

JP Morgan saw the biggest adjustment in the price targets. “While elevated competition and quick commerce losses could weigh on the stock, superior food delivery growth with similar margin expansion is the key silver lining in the print,” the brokerage said.

However, most brokerages believe this correction in the stock price is an ideal entry point for Swiggy. Quick commerce is a valid opportunity and Swiggy has not lost the race by any stretch of the imagination. In fact, the company added more stores in January 2025 alone compared to all of Q3 (October-December 2024).

Swiggy wants to add 100-plus dark stores........

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