Swiggy slips 5%, falls below QIP price; why is the stock under pressure?

The stock price of Swiggy was quoting lower for the third straight trading day, falling nearly 8 per cent. The stock has now dropped below the QIP issue price of ₹375 per share.

Swiggy share price today

 

Shares of Swiggy hit an over six-month low at ₹360.30, declining 5 per cent on the BSE in Tuesday’s intra-day amid heavy volumes. In the proces, the stock price of the food and grocery delivery company fell below its qualified institutional placement (QIP) price of ₹375 per share.

 

Swiggy today quoted lower for the third straight trading day, falling nearly 8 per cent during the period. The stock now quotes at its lowest level since June 19, 2025. It had hit a 52-week high of ₹546.45 on January 6, 2025 and a 52-week low of ₹297 on May 13, 2025.

 

 

At 10:25 AM; Swiggy share was trading 4.3 per cent lower at ₹361.80, as compared to 0.23 per cent decline in the BSE Sensex. The average trading volumes at the counter jumped 1.5 times, with a combined 9.05 million equity shares changing hands on the NSE and BSE.  FOLLOW LATEST STOCK MARKET UPDATES TODAY LIVE  That apart, Swiggy stock was also introduced in the futures & options segment from the January series onwards.

 

Meanwhile, share price of Eternal was quoting 1 per cent lower at ₹278.70, after hitting an intra-day low of ₹276.25 on the BSE.

Swiggy shares fall below QIP price

 

In December 2025, Swiggy completed its qualified institutions placement (QIP) of equity shares, raising ₹10,000 crore. The issue was launched on December 9, 2025 and closed on December 12, 2025, with the issue price of ₹375 per equity share, representing a 4 per cent discount to the floor price of ₹390.5 per equity share. The QIP saw strong and diversified participation from marquee global and domestic institutional investors.

 

Swiggy had said the QIP saw healthy interest from all pools of capital across Domestic Mutual Funds (MFs), Domestic Insurance Companies, Sovereign Wealth Funds (SWFs) and Foreign Institutional Investors (FIIs).

 

The proceeds from the QIP will be utilized for the investment in the expansion and operations of the quick commerce fulfillment network, including dark stores and warehouses; investment in technology and cloud infrastructure; brand marketing and business promotion expenses to enhance the brand awareness and visibility of the platform, across the segments; and funding inorganic growth through unidentified acquisitions and general corporate purposes, the company said.  ALSO READ | Why did Motilal Oswal start coverage on Groww with 'Buy' rating? Check here

Ambit Capital retains 'SELL'; prefers Eternal over Swiggy

 

Swiggy was the first mover, but is now a follower in food delivery (FD)/quick commerce (QC). Profitability also lags Zomato by 6 quarters in food, while it is substantially behind in QC. Analysts at Ambit Capital expect Swiggy’s relative market share in food delivery to stabilize at 40 per cent along with the profitability gap to reduce with exit adjusted. EBITDA (% of average order value or AOV) at 5.0 per cent, 1.8x current level (vs. 5.6 per cent for Zomato) by FY40E. 

 

However, it’s a tougher climb for Swiggy in QC as it will need investments to close the gap with Blinkit on scale, customer acquisition, advertising and dark store efficiency. Moreover, Swiggy order growth in QC has been slowing for 3 quarters and reduced to 48 per cent year-on-year (YoY) in Q2FY26 (vs 140 per cent for Blinkit). Despite only an 8 per cent increase in dark stores over the last 2 quarters, orders per dark store per day are down 14 per cent, the brokerage firm said.

 

On profitability, achieving contribution profitability over a 3-4 quarter period is not an issue, given it is at -2.6 per cent of Average Order Value (AOV). But, adj. EBITDA profitability is a tougher ask, with 9.5 per cent of AOV being the fixed cost. How fast can this swing, as the fixed cost per dark store is materially elevated to ₹67K per dark store per day (versus ₹ 43k for Blinkit). 

 

Therefore, efficiency gaps, vulnerability to competition and possible dilution & lower cash drive greater caution in Swiggy over Eternal, the brokerage firm said in the internet sector report. It retains 'SELL' rating with revised target price of ₹210/₹330 for Eternal/Swiggy.  ======================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.