Swiggy sinks 16% to record low as quick-commerce losses widen

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The brokerage also flagged uncertainty around Swiggy's separate app for its value-oriented food delivery business.

Morgan Stanley said investors would continue to question Swiggy's execution and strategic choices until the company demonstrated consistent performance. It said the strategy of increasing store density and accelerating dark-store additions could drive growth in monthly transacting users (MTUs), but investors would look for sustainable growth even with more normalised discounting.

Jefferies said food delivery reported an in-line quarter for revenue and Ebitda, but quick-commerce's adjusted Ebitda losses widened to a three-quarter high of around ₹900 crore. While quick-commerce net order value grew sequentially, year-on-year growth moderated.

"Reduction in Q/C losses is essential for true value discovery," Jefferies said, adding that Swiggy's current share price did not appear to factor in the value of its food delivery business and cash. Its performance also appeared lacklustre compared with market leader Eternal, the brokerage said.