Swiggy share price falls over 4% after co-founder Nandan Reddy resigns

Swiggy share price today: Shares of food delivery and quick commerce major Swiggy Ltd declined sharply in Tuesday’s session, falling over 4 per cent after co-founder Lakshmi Nandan Reddy Obul stepped down from the company’s board.

The stock opened on a weak note, slipping nearly 3 per cent to ₹266.20, and extended losses to hit an intraday low of ₹262.85. By around 11 AM, Swiggy shares were trading at ₹267.50, down 2.7 per cent, with approximately 2.4 million shares changing hands on the exchanges.

At current levels, the stock is trading less than 5 per cent above its 52-week low of ₹256.70.

JM Financial said that Swiggy Instamart is mired in a growth-versus-profitability deadlock due to a fixation on meeting contribution margin guidance, thereby stunting the scale-up required for long-term viability.

Despite a fortified balance sheet following the recent fund-raise, management’s reluctance to compete full-on is racking up market share loss.

The brokerage said that it fears this strategy, if not recalibrated, would put the business in an orbit of irrelevance soon, particularly as traditional ecommerce incumbents accelerate their QC expansion.

The brokerage added that given no clear visibility of a credible turnaround, we argue Instamart with its current strategy will only destruct value for Swiggy shareholders, even if its food delivery (FD) segment surprises positively.

"Under these circumstances, the best possible outcome for investors in our view is to hope that a larger player acquires Swiggy. Till any telltale signs to this effect emerge, we recommend investors avoid the stock," the brokerage noted.

In the third quarter (Q3FY26), Swiggy had reported a widening of its losses at Rs 1,065 crore, impacted by continuing losses from Instamart and rising advertising and sales promotion expenses. Instamart's Q3 losses increased to Rs 791 crore, from Rs 528 crore a year ago.