India's Swiggy drops as analysts flag cash burn, margin woes

Swiggy

01/08/2025 05:05

** Shares of India's Swiggy SWIG.NS down 2.6% to 393.45 rupees

** Instamart parent's June-quarter loss nearly doubles on higher marketing spends

** CLSA ("outperform") says while SWIG is forecast to hit contribution margin break-even between Q3 FY26 and Q1 FY27, the results did not demonstrate a clear path to meet this target

** Brokerage cuts PT on SWIG to 473 rupees from 500 rupees

** Meanwhile, Morgan Stanley ("overweight," PT: 450 rupees) says SWIG's weaker pace of store additions vs rival Eternal's ETEA.NS Blinkit worries investors

** JP Morgan ("overweight") says SWIG's margin contraction was a disappointment, adding that co's cash burn is a concern

** JPM cuts PT on stock to 476 rupees from 500 rupees

** YTD, SWIG down 28% vs ETEA's 10.4% climb

 (Reporting by Kashish Tandon in Bengaluru)

 ((Kashish.tandon@thomsonreuters.com))