Positive impactResults
Swiggy shares jump 5% a day after Q2 results sparked a 17% crash. Why brokerages remain bullish despite target price cuts
Economic Times 1 hr ago·26 Oct 2026, 7:13 am
Swiggy's stock saw a sharp rebound of nearly 5% on Wednesday, recovering from a steep 17% decline the previous day. The volatility followed the release of its Q2FY27 results, where the company reported an improvement in food delivery profitability. However, this positive news was overshadowed by a significant increase in losses from its quick-commerce arm, Instamart.
Despite the profit boost in its core business, the surge in losses at Instamart caused major brokerages like Jefferies and Nomura to lower their target prices for the stock. Nevertheless, these firms maintained a 'buy' or 'outperform' rating, signaling that they still see long-term growth potential in the company's business model.
For investors, the key focus now shifts to how Swiggy plans to manage its cash burn rate at Instamart. The market will be closely watching the company's strategy to turn this unit profitable without stalling its overall expansion plans.
Affected stocks
Bullish1 stock
Bull / bear label is derived from the article's AI sentiment — indicative, not advice. Prices may be delayed.
Key takeaways
- Concerns Swiggy (SWIGGY).
- Category: Results.
- AI reads the tone as positive (potentially bullish) for the stock.
- Assessed as a significant, market-relevant update.
Why it matters
A meaningful update for Swiggy worth tracking. The tone is positive — historically associated with upward pressure, though not predictive. Use the price and stock snapshot to gauge how the market is responding.
